The NEIGHBORHOOD GROUP Gas Lease Deal is Done!

Please forgive the lack of updates over the last week and a half. The Negotiation Committee experienced some unexpected challenges that threatened to derail our gas lease deal. However, those setbacks are history and the deal that was mentioned earlier in this blog is now done.

To remind everyone, the deal that we reached with Paloma Resources is for $16,850 per acre, a 25% royalty, and a primary term of 3 years with an option for 2 additional years. The Negotiation Committee worked very hard to get this deal. We are very pleased with the results and we’re sure you will be, too.

We know that you are ready to get this deal signed and receive your money. The contract signings will probably begin next week and take place over a number of days. As soon as Paloma lets us know the exact dates, times and location of where the signings will take place, we will confirm and pass this information along to you.

Important Note about Deadlines: Be advised that as of this moment there is no hard deadline by when Neighborhood Group members must have their gas lease contracts signed. I point this out because there is some confusion among members that live in the corridor between Park Springs Blvd. and Kelly Elliott Rd. just north of Green Oaks Blvd. Many have reported seeing red & white lawn signs that mention signing deadline of tomorrow, Saturday, January 26. This is NOT the case for our group. I will explain in my next post following this one.

The Negotiation Committee would like to thank all of you for your exceptional patience in getting to this point. We hope you are pleased with the outcome of the deal and we have you to thank getting us here. Thanks again.

So what happens next?

As I reported earlier, we have reached a tentative agreement with Paloma Resources but there is still work to be done.   Bob and Randy will be meeting face-to-face with the Paloma representatives to work out further details including a formal letter of agreement, the gas lease contract itself, as well as the timeline to completion.  This includes arranging a series signing meetings for homeowners, procedures for disbursement of monies, etc. 

This has not taken place yet.   Rumors are creeping up that are straying from the facts of the matter.   The bottom line is if you did not receive instructions or an update in the form of an email from Bob Haelle in your “Inbox” then it is rumor and you should dismiss it. 

This situation with Paloma is still unfolding.  As we meet, discuss and reach agreements the process will begin to take shape as it should.   Also, as we pass each of these “milemarkers” we will bring you up-to-date on them via email and this blog. 

Be advised that even though we have reached this tentative agreement, you are likely to receive personal offers from various individuals and/or entities regarding your mineral rights.  We ask that you remember that any update, alert or call to action for the group will come from Bob Haelle only and broadcast again by this blog.   So if you do receive another offer we ask that you please disregard so that we may finish what we have started together.

Thanks once again for your patience and endurance. 

Offers Received So Far

At present there are two firms competing for the leasing rights to your minerals, Dale Resources, L.L.C. and Paloma Resources, L.L.C. The following is a list of offers that have been made to Coronet Estate homeowners to date beginning with the earliest and ending with the most recent.

• Oct. 30, 2007 – Dale Resources ~ $5500/acre – $1000 min. ~ 25% royalty ~ 5 yr. term ~ No surface operations
• Nov. 04, 2007 – Paloma Resources ~ $6000/acre – $1200 min. ~ 25% royalty ~ 3 yr. primary term with 2 yr. option. [this offer was made via a flyer not via formal letter]
• Nov. 12, 2007 – Paloma Resources ~ $7000/acre – $1200 min – 25% royalty ~ 3 yr. primary term with 2 yr. option. [via formal letter]
• Nov. 14, 2007 – Dale Resources ~ $7500/acre -$1200 min ~ 25% royalty ~ 3 yr. primary term with 2 yr. option ~ No surface operations.

Stay tuned!