Review the Stone Meadow Lease FAQ HERE

July 19, 2008

Dear Stone Meadow Homeowners:

The day has finally come! Your Gas Lease Committee has successfully negotiated a lease of our minerals to Chesapeake.  For the past 18 months, the Committee has looked at over 20 different leases with the goal of not only protecting the neighborhood, but negotiating the best deal possible.  I am very pleased to announce that those of you who wish to follow the recommendation of the Stone Meadow H.O.A. Gas Lease Committee will be able to sign your lease AND receive your check next Friday, July 25th, or Saturday, July 26th.  Hallmark Baptist Church has opened it's doors to our residents to meet with Dale Resources (on behalf of Chesapeake) to have an official "lease signing" meeting at the following times:

Friday, July 25th, 3-7pm
Saturday, July 26th, 2-4pm

For those of you who are out of town homeowners, please contact Dale Resources at  (817) 451-5353 and speak with Joseph Hayden. Now for the details!  Signing Bonus = $20,000 per acre with 25% royalty.  Our contract states that the signing bonus is calculated on your lot to the middle of the street so this calculation will be an approximate "ballpark" figure to give you an idea of your check amount.  Take the tax records acreage percentage of your lot and multiply it by $20,000.00. For example, if your lot is .14 acre x $20,000 = $2,800.00 signing bonus. If your lot is .3 acre x $20,000 = $6,000.00 signing bonus, etc. The negotiated 25% royalty will be paid once the well is producing.

Representatives of Dale Resources will be on hand on July 25-26 at the designated times to answer any and all questions. On Saturday, July 26th, at 6pm Dale Resources is hosting a catered Stone Meadow H.O.A. social event to celebrate the lease signing.

Location = Stone Meadow Park
Food = Catering by Cousins BBQ
Soft drinks & water provided

For those of you who want to review the gas lease, it is attached. If you have questions, please reply to this e-mail & the committee will do our best to post answers to your questions on the www.stonemeadow.net website by Thursday of next week. Our goal is that everyone is as comfortable as we are with the lease terms and process, and that the Friday/Saturday meetings go smoothly.

On Saturday, bring your chairs and/or a blanket to sit on. Don't forget the sunscreen & bug spray :)

Sincerely,
Stone Meadow Gas Lease Committee

Friday, September 21, 2007

Water district leases oil and gas rights on 40 acres near Colonial
MAX B. BAKER Star-Telegram staff writer  

Friday, September 21, 2007

Neighborhoods reach lease deal

By JIM FUQUAY

Star-Telegram Staff Writer

FORT WORTH -- Representatives of the Berkeley Place and Ryan Place neighborhoods in south Fort Worth say they have come to terms with XTO Energy on a mineral-rights lease that incorporates residents' safety and quality-of-life concerns and could become a model for other neighborhoods in the area.

The lease has terms similar to one that Fort Worth-based XTO negotiated recently with the Tanglewood Neighborhood Association, including an unusually high bonus payment of $10,000 an acre, the highest yet paid on residential leases, and a 25 percent royalty. Tanglewood is an affluent area with about 550 homes in southwest Fort Worth.

XTO has already achieved a foothold in south Fort Worth with its purchase in August of thousands of leases from Fort Worth Energy. The new contract could make it the front-runner to lease the neighborhoods just south and southwest of downtown Fort Worth. Chesapeake Energy also has attempted to lease the area, but several neighborhood representatives said the company and its leasing agents were relatively inflexible in addressing neighborhood issues.

Neighborhood leaders in several of the communities in the past year had encouraged their residents not to sign leases individually but to wait until their associations negotiated a uniform and favorable contract. Although many commercial properties in the area have been leased and the Fairmount neighborhood in particular has seen a number of leases signed, leaders in several of the neighborhoods said they believed that few of their residents had signed.

"Our perspective is, if you choose to sign a lease, this is the one you should sign," said Dan Roberts, president of the Ryan Place Improvement Association. "It may not be the richest deal in Fort Worth, but it certainly is one of the best deals for residential drilling. The concerns we have are being met."

Principal among the Ryan Place and Berkeley concerns was the drill site. Fort Worth Energy plans to use a site east of Jennings Avenue and north of Page Avenue, in an industrial area, to reach those neighborhoods. The lease specifically excludes the use of a site between Eighth and Stanley avenues, land held by Four Sevens Resources, which leases in the area for Chesapeake.

Berkeley, Mistletoe Heights, Park Hill, Ryan Place, and University West are among about 10 neighborhood associations participating in the Joint Neighborhood Committee, formed this year with the aim of creating a standard lease that neighborhood associations can recommend to their residents. Together, the neighborhoods include more than 1,000 acres and about 4,800 homes, said Bill Hall, an organizer of the Joint Neighborhood Committee and president of the Park Hill Neighborhood Association.

Hall said there is no formal process by which the various neighborhoods will use the lease, but the plan is to make it available as a template that can be amended to address specific neighborhood goals.

Dub Stocker, president of Fort Worth Energy, said the agreement "shows the ability to respect the neighborhoods' concerns" while still developing a practical, economic lease. He said he expects the Ryan Place/Berkeley lease, "or something similar," to provide a framework for agreements with other neighborhoods.

Stocker said Fort Worth Energy and XTO could afford to sign a relatively generous lease "because they are bringing together very, very large tracts of land." In comparison, most residential properties in Tarrant County have been offered bonuses closer to $4,000 an acre.

Dan Freundlich, a member of Berkeley Place's lease-negotiating team, said the Tanglewood lease "broke open everything" for his group and the Ryan Place negotiators in their dealings with XTO. "Once we got that lease, it went fast," he said.

Bill Conley, the head of the Ryan Place leasing committee, said the Tanglewood lease, negotiated by Fort Worth attorney and Tanglewood resident David Palmer, included some particularly precise language regarding royalties and safety issues. He said the Ryan Place/Berkeley lease specifies which drill sites may and may not be used, and guarantees that drilling activities must be at least 600 feet from neighborhood properties, a figure that would rise if the city of Fort Worth increases its 600-foot separation rule.

The Ryan Place/Berkeley lease has a longer term than Tanglewood, four years versus three, but that was one of the compromises made to reach other conditions, Conley said.

Roberts said his group expects the lease, currently being prepared by XTO, to be mailed to residents by the end of the month. He expects other neighborhood associations to either adopt the lease for their own neighborhoods or use it with additions specifically tailored to a neighborhood, such as the location of drilling sites.

"The template has been completed. It's what each neighborhood in the coalition will use," he said.

Representatives of Four Sevens and Chesapeake could not be reached for comment.

Stocker said that although Chesapeake and XTO/Fort Worth Energy each now own leases in the area, he expects an agreement that allows drilling to go forward.

"Companies always, at the end, work out something, a swap or a participation," he said. "It'll get done. All the companies have too much money invested to walk away."

LEASE TERMS

Bonus: $10,000 an acre

Royalty: 25 percent

Term: 48 months

Restrictions: No drill site on Eighth Avenue or within 600 feet of a home site; no compressor within 1,000 feet of the Ryan Place Improvement Association boundary

Source: Ryan Place Improvement Association

August 28, 2007

-----Original Message-----
Date: 08/28/2007 09:48AM
From: GLEE423@charter.net
To: jonwise@kw.com
Subject: Star Telegram Articles/Gas Lease
Jon,
You have probably read these articles in the newspaper but I thought I would send them to you anyway. You might want to put them on the website or maybe not but I thought they were interesting.
Greg

Article #1: Gas deals' fine print can be costly, Mike Lee Star-Telegram staff writer

FORT WORTH — More than a year ago, homeowners in Oakhurst, a middle-class neighborhood northeast of downtown, became some of the first in the city to sign up for natural gas drilling. The landmen called it"mailbox money." By signing the leases, the property owners would get a royalty check for the life of the gas well. Now, those homeowners are learning about the fine print in natural gas leases. Before they can cash their royalty checks, they have to get legal releases called subordination agreements from their mortgage companies. And the mortgage companies are asking for fees that amount to several years' worth of royalty payments. Gas-company officials said the problem may affect every homeowner who has
signed a gas lease after reaching a mortgage agreement. That could include thousands of people in Fort Worth.

Joe Walker, who has lived in Oakhurst two years, found out about the paperwork requirement in mid-July when he got a letter from Chesapeake Operating Co. He had about two weeks to get the paperwork processed or have his royalty payments "suspended" by the gas company. Walker sent the paperwork to his mortgage company, Countrywide Home Loans, and got a letter back asking for a $500 fee. And, the letter said, even that $500 didn't guarantee that the company would agree to sign the paperwork. He eventually negotiated the fee down to $75, but the bank said in a letter that there's no guarantee that it will approve the agreement. And the third-party investor who has bought Walker's mortgage might impose other requirements,
according to the letter. Walker wondered why residents weren't told about the need for subordination agreements when they signed the leases in 2006."Somebody should have been able to figure this out," he said in an interview last week. "That would have given people a year and a half to get this taken care of." Oakhurst resident Jann Miles got a letter from her mortgage company, Washington Mutual, asking for $700 in fees, along with a new survey of her property.

At least one bank, Colonial National, has refused to sign the subordination agreements that Chesapeake sent out, although bank officials say they're willing to work with Chesapeake and the homeowners. Enough residents were concerned that they held a neighborhood meeting with an oil and gas lawyer and Chesapeake representatives. Dale Resources, one of the pioneers in inner-city gas leasing in Fort Worth, handled the original leases in Oakhurst. Company President Larry Dale led VIP tours of the drill site, near the Mercado Juarez restaurant on the west side of Interstate 35W, to show how drilling could be done with minimal impact on the neighborhood, which is east of the highway. Dale later sold the whole operation to
Chesapeake. A spokesman for Dale referred questions to Chesapeake. Julie Wilson, Chesapeake's vice president for corporate development, said her company wasn't involved in the leasing process. "It's hard for us to know what they were told or what they weren't," she said. "I don't think there's any misrepresentation on the part of any energy company or anybody signing a minerals lease." Tim Malone, an oil and gas lawyer who spoke to residents at their meeting last week, said part of the problem is that urban gas drilling is so new. When a gas company leases mineral rights in a rural area, it might need subordination agreements for only two or three landowners. Chesapeake has about 600 leases with homeowners in Oakhurst."The logistics are just much more cumbersome," Malone said. Wilson, the Chesapeake executive, said dealing with property owners who have mortgages is a relatively new experience for the company. Until recently, most gas exploration was done in rural areas, where land is more likely to be owned outright. "We do realize now that there needs to be a better job of
telling people upfront," she said. "We're changing our language in the leases and telling people that they have a responsibility to make sure they get the subordination." Alan Hegi, a real estate lawyer who is president of the real estate section for the Tarrant County Bar Association, said it's important for homeowners to know what they're doing when they sign a lease. "Do your homework," he said. "Oil and gas companies are trying to sign up people for leases but they're not going to hold everybody's hands through the process. [Homeowners] have got to have some ownership responsibility."

Banks typically are cooperative, Hegi said. "That additional income to the homeowner does mean that the homeowner will have an enhanced ability to pay," he said. "I'd be surprised if lenders were refusing to give permission. I'm not surprised if they're charging a fee; that's what lenders do." The residents give Chesapeake credit for trying to resolve the situation. Chesapeake agreed to pay residents for up to 90 days, even if they had not processed the paperwork. And the gas company also offered a simplified version of the paperwork, known as consent of lien holder. "I'm not mad at Chesapeake, I think that the mortgage companies are trying to make another dollar," Miles said. Miles' bank, Washington Mutual, did not respond to three requests for comment this week. Nor did officials at Walker's bank, Countrywide. Officials at Colonial, the bank that has not signed any subordination agreements, said they're looking out for their interests and customers' interests. But the company uses a different type of subordination agreement, one that gives it the ability to take over the gas lease if a homeowner defaults on a mortgage. Gas companies typically don't want to get into the middle of a foreclosure. Joe Walker got a letter from Countrywide Home Loans seeking $500 to process a subordination agreement for his gas-lease deal.
mikelee@star-telegram.com Mike Lee, 817-390-7539

Article #2: Woodhaven neighborhood pools its gas-lease assets, By JIM FUQUAY, Star-Telegram Staff Writer

As Tarrant County neighborhoods grapple with how to best manage the issue of mineral rights leasing, residents in Fort Worth's Woodhaven community went with a novel approach: a community lease. It's a little-used instrument that is designed to control how leasing and drilling takes place in a neighborhood, while at the same time equalizing the signing bonuses
and royalties that accompany property owners' dealings with natural gas producers. "You want everybody to sign the lease, and you want it to be the best one," said Rick Disney, a lawyer and 21-year resident of Woodhaven, east of downtown Fort Worth. The lease is not mandatory. In Woodhaven's case, 849 of 904 single-family households signed the common lease, along with 113 of 200 condominium owners, said Joe Epps, president of Woodhaven Community Development Inc., the neighborhood's not-for-profit economic-development arm that coordinated the leasing nearly three years ago. Commercial properties, such as Woodhaven Country Club, signed their own leases, he said.

Not the 'standard' lease
Woodhaven's community lease is not the same as the "standard" or "model" lease being developed by the Joint Neighborhood Committee, which includes several neighborhoods in south Fort Worth. That effort aims to create a lease that reflects the concerns and interests of homeowners in those neighborhoods and which can be offered to each homeowner as an alternative to signing the energy company's own lease. In Woodhaven, there is a single community lease with 962 signatures. Todd Liebl, district landman for Chesapeake Energy, holder of Woodhaven's lease, said he's seen only one
other community lease in his 25 years as a landman. A landman works to locate and obtain mineral-rights agreements from property owners. "It sometimes is difficult for a community to work together to a point where they're all comfortable with one lease," Liebl said. John Baen, a real estate professor at the University of North Texas who also handles mineral-rights leases, agreed with Liebl. "It all looks great on paper, but there are a lot of dynamics" anytime a few hundred people are involved, Baen said.

Not everyone signed
That was true at Woodhaven, where nearly 50 homeowners did not sign the lease. One was Norm Bermes, who has lived in Woodhaven nearly 20 years. Bermes said he liked the concept of a community lease but objected to the fact that Woodhaven Community Development Inc. was paid for its organizing efforts by Four Sevens Oil Co., which later sold the lease to Chesapeake.

According to Woodhaven Community Development's October 2005 newsletter, it received $39,300 from Four Sevens in September that year. Epps said the terms of the payment -- $300 per acre included in the community lease -- was fully disclosed at the time and the money is used only to promote Woodhaven. Bermes said he also felt the terms could have been better. He noted that recent leases have carried higher royalties and bonuses. Woodhaven received a 22 percent royalty and a signing bonus based on $650 an acre, with a $250 minimum per home lot. That was good at the time, but today, royalties in residential areas range from 20 percent to 25 percent and bonus payments have escalated to $500 or more per lot.

'Continuous drilling'
Epps said the lease also included favorable terms. One is a "continuous drilling" clause that requires Chesapeake to drill a new well at least every 18 months. That prevents an operator who faces a large backlog of undrilled leases from drilling one well to satisfy the lease deadline, and then moving on to other leases. Woodhaven's royalties are also based on the gross price of natural gas produced, with no deductions related to treating the gas or piping it to market. Bermes said he eventually signed a separate lease with Chesapeake for the same bonus and royalty as the community lease. However, he will receive royalties only from wells in a more limited area that includes his home. That illustrates the other big difference of Woodhaven's lease. In a typical lease, a homeowner's property is pooled with others to form a unit. The homeowners' royalties will come only from the well or wells in their units. With the community lease, all the homeowners, based on their lot size, split all the royalties from all the wells on all the units in the lease. If 50 percent of the acreage in a unit belongs to homeowners, then all the homeowners who signed the community lease share 50 percent of the royalties from that unit,
regardless of where their homes are. Liebl compared Woodhaven's community lease to a mutual fund. Property owners' returns depend on the entire collection of wells in the lease, not any single well. Chesapeake spokeswoman Mercedes Rey said that provision can make a difference in a neighborhood the size of Woodhaven, which covers hundreds of acres of
residential and commercial property. "You could be all the way on the east side and still benefit" from a well on the west side, Rey said.

Many small slices
So far, however, the benefit to Woodhaven homeowners has been minimal. The first well drilled in the area is mostly under Woodhaven Country Club and an apartment complex. Only 12 percent of the acreage in that unit belongs to homeowners. Therefore, everybody in the community lease will split 12 percent of the 22 percent royalty from that one well. That slices a small pie a lot of times. Epps joked that his share of the royalty for his quarter-acre lot amounted to just $29 ---- and that was for nine months' production, from August 2006 to April 2007. But from his perspective, "it's free money," and he expects payments to rise as more wells are completed and tied in to pipelines. Rey said Chesapeake's plans call for at least 18
wells on eight units. The company is drilling five wells from a drill site west of Loop 820 and north of Interstate 30. It also completed a second well in the same location as the initial well and recently started selling gas from that well.

Jim Fuquay, 817-390-7552 , jfuquay@star-telegram.com

August 20, 2007

-----Original Message-----

Date: 08/19/2007 05:42PM
From: slrd02@yahoo.com
To: jonwise@kw.com
Subject: RE: Gas lease

Yes, you may. I apologize for the very late response. You know how busy work gets, and it has been furiously busy at work. Thanks for sharing this. Let me know what Chesapeake states as far as them being serious possibly in the future. They should know if there is any interest at all in this area or not. I know right now they have far bigger projects that they are trying to close.

Jon Wise <jonwise@kw.com> wrote:

Excellent!!!

Can I put this out to the neighborhood and on the website?

Jon

-----Original Message-----

Date: 08/11/2007 08:54PM
From: slrd02@yahoo.com
To: jonwise@kw.com
Subject: Re: Gas lease

From what I understand is that Chesapeake is buying out small gas energy producers because they are really big in the gas producing industry and they are serious and they are a reputable company. They have been in the gas industry for a very, very long time so they do not play around when they approach folks to sign a gas lease with them. Giving in to the small guy might hinder us rather than help. Eventually, Chesapeake will make their way to us and we can deal with Chesapeake not the small newly formed gas wannabe. Official Public Records, Tarrant County, shows Potestas just began to record gas leases as early as July 13, 2006 meaning they are a recently formed company. In fact they are a LEASING AGENT. Please notice the letter is signed by Mark Averitt, Project Manager and the letter states "project" A leasing agent's project is to SELL leases to an operating company. An operating company is the one that will be in charge of the drilling process and paying out royalty to lessors that sign gas leases with the operator. I'd rather wait for the Big Fish (Chesapeake) than the company who will in turn sell to Chesapeake. Remember the man who spoke at the meeting stated he would sell the leases to Chesapeake. There is more to say but too much to write so I hope this helps all.

Jon Wise <jonwise@kw.com> wrote:

Stone Meadow residents,

Many of you in Phase I have again received a letter from Potestas asking you to sign over your mineral rights to them. They mentioned an increase in the bonus money, which is a move in the right direction however, there is more to the story. As always you are free to exercise your rights as a homeowner and sign your rights away to them any time you wish. Your Gas Lease Committee feels this is still not the right time. Potestas still has NOT filed application with the city for a drilling rig to be placed near our neighborhood. The contract you will be signing is binding and without representation you may be giving more of your money away than you realize.

Potestas has begun the process of dividing our neighborhood. Think, if 3 other streets had received this letter besides you, would you want them to take the money and run? We are stronger if we act as a neighborhood and not street by street.

I encourage you to stay strong.

We have asked Chesapeake to make a presentation to our neighborhood as soon as they can. With as much business as they are dealing with, our small neighborhood is not very high on their priority. The Barnett Shale is NOT going to run out of natural gas, I assure you.

Please be patient.

Jon Wise

May 14, 2007

From: slrd02@yahoo.com
To: jonwise@kw.com
Subject: Re: Gas lease info

You are correct that no one should sign the lease nor sell their mineral rights. I work for a gas energy company and the minimum we pay for a lot is $425 with 20% royalty. I looked in the Official Public Records and Hallmark has signed a gas lease with Potestas at 24% royalty for only 3 years primary term lease. I notice the gas lease I received is for 5 years with only 1/8% which is the royalty of many, many years ago way before the Barnett Shale boom of recent times.

So correct...NO ONE should sign the very poor minimal amount being offered by Potestas. I also researched and discovered that the address they use is Humphrey Oil Company out of Dallas.

I plan to be at the meeting on Thursday night to ask them specific questions.

I looked up the definition of Potestas and I found the following "The idea of potestas originally referred to the power, through coercion, of a Roman magistrate to promulgate edicts, give action to litigants, etc. This power, in Roman political and legal theory, is considered analogous in kind though lesser in degree to military power." I don't trust a company who chose such a name and offering such poor royalty etc. It's as though we are uneducated fools.

Thanks for your email warning folks not to sign. If we stick together, we WILL have more power to get a better royalty and less time on lease primary time like 3 years and no more.

May 11, 2007

Dear Stone Meadow Homeowners,

When you check your mail today, many of you will find a gas lease/purchase contract from Potestas Corp. I encourage you to wait and NOT sign this contract. You may be missing out on a better deal. Chesapeake (another Gas company) has plans to present an offer to the entire neighborhood of Stone Meadow. Their offer will be much higher than the $100 or $175 being offered by Walt Hill! I don't have all the details yet but we can obviously work a better deal if we ALL stick together as a neighborhood. We are tapping into our resources with the Fort Worth League of Neighborhoods, the Ft Worth Community Outreach Dept and the District 6 Alliance to gain insight into the options available and to gain insight on the negotiation process.

I can not stress the importance of waiting less than a week to make or sign a deal with ANY company. Your Stone Meadow Gas Lease Committee will be meeting soon to discover what our options are. We will then deliver that information to you to allow you to make the best decision possible. Please don't misunderstand our intentions. You will have the final say so on YOUR mineral rights, and whether you wish to sell them outright or lease them. It will be your decision for your property. From a negotiating perspective, we can structure a better deal for everyone if we act in unison.

Please discuss this note with your neighbors who don't have e-mail access. Please tell those neighbors with an e-mail address to visit the Stone Meadow website (www.stonemeadow.net ) for updates and to place themselves on the notification list. You may even want to attend the Barnett Shale Expo http://www.barnettshaleexpo.com/ this next Wednesday, May 16th.

At no time EVER should you sell your mineral rights while you own your home. This is part of Walt Hill's latest offer for a $300 mineral rights purchase. This is NOT a good move for you & does not have your best interests in mind.

I look forward to delivering some very good news soon.

Jon Wise

P.S.
Tomorrow is Election Day. The Stone Meadow Board backs Jungus Jordan for District 6 City Councilman and we also back the CISD Bond package. Please go VOTE!!!!! I'm told only 1,600 people took advantage of the early voting days, which is a very, very small turnout compared to the number of registered voters in our district.

Here's a link to get more voting information online, including polling locations:
http://www.crowley.k12.tx.us/docs/district_information/election_day_locations.pdf

-----Original Message-----
Date: 12/03/2006 08:30AM
From: gbkidwell@sbcglobal.net
To: Wildbill9@sbcglobal.net
Cc: Kim.Mote@Fortworthgov.org; jonwise@kw.com
Subject: Dale Resources "PROPOSED NEIGHBORHOOD" Drilling Activities.
HI, TO ANYONE WHO NEEDS TO BE CONCERNED:

As some of you may already know, two meetings have been scheduled, concerning the proposed signing of Gas Drilling Leases within the Highland-Terrace Hallmark Neighborhood. The first meeting was held at the Christ Life Church, 6250 S. I/35 Freeway, Tuesday November 28th 2006. The Dale Resources Land Man form of Notification was very crude, in that they stuffed the notices in door screens, mail/boxes, and any other visible place on your property, to initiate a form of delivery to known, Legal Mineral Rights Owners. (No Us Postal Service)

At the November 28th Public Meeting there were (by Dale Resource Estimates, a 300 plus Attendance) enough concerns raised at that Meeting to justify another Public Meeting, Scheduled for December 12th, 2006--6:00pm, at the same location.

These concerns center around three major items: up front signing Bonus Lease Money, Duration of Signing Lease, and Percentage of Production for duration of the Well. This could be as long as 20 or more years, depending on several important factors -- Drill Site, Number of Wells, Production Schedule, and most importantly, the Current Market Price of Natural Gas. There are many more very sensitive issues to discuss, and negotiate,concerning Safety, Environmental Issues, Air Pollution, Noise, Water Usage, Long Term Blight, and most importantly ... FUTURE PROPERTY DEVALUATION.

This recent commencing of Urban Drilling within, and about City of Fort Worth Neighborhoods, could certainly cause adverse affects toward future commercial and retail development. No City can sustain a proper balance by solely depending upon Neighborhood Development, absolutely require a specific amount of Commercial Manufacturing and Retail land mass.

A closed meeting for a gathering of facts, and continued discussion, has been scheduled for Tuesday December 5th 2006, between Neighborhood Leaders and Dale Resources Representatives. This fact finding mission is for a Informational Presentation to the General Meeting of December 12th 2006, at the address listed above. We encourage, not only the affected people, to attend the December 12th 6:00pm Meeting. but Neighborhood Leaders, and Property owners throughout District Six, as well as Interested persons thru-out the City, so they may be better informed.

THERE IS NO DOUBT, IT'S COMING TO YOUR NEIGHBORHOOD SOON, BE PREPARED.

This Notice in E/Mail form shall meet all City and State Requirements, for Posting of Public and Closed Meetings.

Sincerely,

G. B. "Gary" Kidwell
Member=Facilitator
Hallmark/Camelot
Highland-Terrace
Neighborhood Association

Any Questions Please Call:
817-293-1031-Home
817-999-0981-Bus/Cell

-----Original Message-----
Date: 12/15/2006 08:22AM
From: gbkidwell@sbcglobal.net
To: Wildbill9@sbcglobal.net
Cc: gingercary@hotmail.com
Subject: Dale Resources Continued Meetings Process.
Hi to everyone,

After numerous discussions with persons who have been involved with past Neighborhood Drilling Contract Activities, and caught up in the same process we are wading thru--I have some thoughts to present, and openly discuss.

It's very important to realize, as a Neighborhood Association, and a local Representative body, that we need to be up front and very honest, in our dealings with any outside Gas Drilling Identity. We're not only representing our paid membership, but in reality, the good of the Neighborhood as a whole, Therefore my Observations:

From the very concept, Dale Resource Representatives have not been very pleased or receptive to our involvement in this Neighborhood Leasing Project. As you all probably know, the Landmen and Point Men are given very limited authority, and are charged with setting up Meetings, and Acquiring Lease Signings Only. As each day passes with this ongoing process, it appears so obvious they are being very deliberate in their actions, and are determined not to become involved in any phase of our attempted collective bargaining process They are also being very careful not to create any conflict, example, to allow us a public voice at these hearings, but still to allow themselves the continuing ability to chip away at Lease Signings.

Good example was the first meeting, where they assumed it would be a walk in the park to obtain Lease Signings, but discovered there were many concerns, and a very concentrated resistance from many Neighborhood Residents. After our Executive Meeting, (of Dec. 5th) and our counter offer was on the table, their actions, and mind set completely changed, because they made a very concerned effort not to discuss any such counter offer, even at our public insistence to do so.

At the second General Public Meeting, you surely noticed the up-front Signing Tables that were very busy supplying information, and probably doing Bonus and Lease Signings. Dale Resources, as a representative group offering a product, has the ability to continue a Indefinite Public Meeting schedule so as to achieve their desired Lease Signing Goals. After analyzing their past actions,and their, Hunkering Down Mode, it's rather obvious how this has eroded the level of our Neighborhood Resistance.

This process has also caused some Resident concerns, about the their ability to receive Bonus Money in the long term. Having said that, It now seems rather obvious, we might want to consider a different method of continuance or a very graceful exit from this ongoing process. The continuance of any further Neighborhood attempts to reverse this process, could likely bring us negative results, and some level of adverse publicity for our Residents and Neighborhood Association.

I personally think we've been totally outsmarted in this process, and very well could be, a less than satisfactory conclusion.

Sincerely,

G.B."Gary" Kidwell
Member-Representative
Hallmark/Camelot
Highland-Terrace
Neighborhood Association.

-----Original Message-----
Date: 12/17/2006 10:18PM
To: jonwise@kw.com
Subject: Re: Dale Resources Continued Meetings Process.
The opinion below is a personal statement and is not to be construed as a professional advisement on behalf of any broker, drilling company, or any other oil & gas entitiy.

His concerns are justified. Here is "how" it works. An assignment is handed down from the client...Dale Resources, Chesapeake, Devon, etc. The land is researched by several landmen. Once it is determined that surface owners own or share ownership on the mineral estate, leasing agents move in. They hold "meetings" designed to "answer" questions. These meetings serve one purpose - sign leases. Once a percentage (determined by # of lots v/s # signed) has been reached, no further negotiation is necessary. The meetings are NOT for negotiation. The client sends down an amount they are willing to pay. If enough people sign for that amount, it's basically, "screw you." Your friend from this other neighborhood has been "outsmarted." What Dale is doing is what EVERY company is doing to adjacent neighborhoods to their drill sites, including our client. The goal is to pay the least amount of money per acre. This process works really well with small lot owners who do not take the time to be informed on the subject or take the time to work together.

HERE IS HOW WE, STONE MEADOW, DO BETTER....

The homeowners in our neighborhoods need to be informed by the HOA on the following things:
Although ANY money for your family might be cherished right NOW, if you sign a lease, you are jeopardizing the opportunity of the neighborhood as a whole to receive a larger amount a few weeks/months down the road.
If homeowners and neighborhoods work TOGETHER, the bonus money goes UP!, every time.
If WE approach a company as a whole, bargaining CAN happen.
The goal of any oil & gas company right now is to sign as many leases as possible. The game plan for getting the "many" is divide and conquer....and, it work's.
According to preliminary research, no one in this immediate Stone Meadow-Summer Creek-Hulen Heights area owns 100% of their minerals.
Here's how the math works if our subdivision only owns 1/2 of their mineral estate (yet to be determined):
You own .25 acres (large # for our subdivision) and sign for $1000/acre, your bonus check would only be .25 x 1000 /2 = $125. That is chump change! There is MORE to be had!
Companies do NOT negotiate with individual homeowners. They negotiate with landowners, 1 acre +.


***BETWEEN US***

Our subdivision is slated for negotiation with Chesapeake. We will talk by phone, not email, concerning these matters.



----- Original Message ----
From: Jon Wise <jonwise@kw.com>
Sent: Friday, December 15, 2006 10:06:59 AM
Subject: Dale Resources Continued Meetings Process.


As residents of Stone Meadow I feel your loyality, in a gas lease situtation, would be to the community and espically our neighborhood. Anything less, would be unacceptable, IMHO. Having said as respectively as I can, I would like to get your take on what is happening with one of our other neighborhoods and their Landmen.

Please read below. If there are any suggestions you might offer we would be very grateful.

Jon

-----Original Message-----
Date: 12/15/2006 08:22AM
Subject: Dale Resources Continued Meetings Process.
Hi to everyone,

After numerous discussions with persons who have been involved with past Neighborhood Drilling Contract Activities, and caught up in the same process we are wading thru--I have some thoughts to present, and openly discuss.

It's very important to realize, as a Neighborhood Association, and a local Representative body, that we need to be up front and very honest, in our dealings with any outside Gas Drilling Identity. We're not only representing our paid membership, but in reality, the good of the Neighborhood as a whole, Therefore my Observations:

From the very concept, Dale Resource Representatives have not been very pleased or receptive to our involvement in this Neighborhood Leasing Project. As you all probably know, the Landmen and Point Men are given very limited authority, and are charged with setting up Meetings, and Acquiring Lease Signings Only. As each day passes with this ongoing process, it appears so obvious they are being very deliberate in their actions, and are determined not to become involved in any phase of our attempted collective bargaining process They are also being very careful not to create any conflict, example, to allow us a public voice at these hearings, but still to allow themselves the continuing ability to chip away at Lease Signings.

Good example was the first meeting, where they assumed it would be a walk in the park to obtain Lease Signings, but discovered there were many concerns, and a very concentrated resistance from many Neighborhood Residents. After our Executive Meeting, (of Dec. 5th) and our counter offer was on the table, their actions, and mind set completely changed, because they made a very concerned effort not to discuss any such counter offer, even at our public insistence to do so.

At the second General Public Meeting, you surely noticed the up-front Signing Tables that were very busy supplying information, and probably doing Bonus and Lease Signings. Dale Resources, as a representative group offering a product, has the ability to continue a Indefinite Public Meeting schedule so as to achieve their desired Lease Signing Goals. After analyzing their past actions,and their, Hunkering Down Mode, it's rather obvious how this has eroded the level of our Neighborhood Resistance.

This process has also caused some Resident concerns, about the their ability to receive Bonus Money in the long term. Having said that, It now seems rather obvious, we might want to consider a different method of continuance or a very graceful exit from this ongoing process. The continuance of any further Neighborhood attempts to reverse this process, could likely bring us negative results, and some level of adverse publicity for our Residents and Neighborhood Association.

I personally think we've been totally outsmarted in this process, and very well could be, a less than satisfactory conclusion.

Sincerely,

G.B."Gary" Kidwell
Member-Representative
Hallmark/Camelot
Highland-Terrace
Neighborhood Association.

-----Original Message-----
Date: 01/30/2007 10:29PM
To: jonwise@kw.com
Subject: Re: Gas Drilling Alternative for Neighborhood.

The $3500/acre with a $500 lot minimum is a great deal! Also, getting a 25% royalty is usually saved for a drillsite. We usually start non-drillsites at 20%, knowing we'll end up at 22 or 23%. My husband and I work Johnson County, but know people who work in the Tarrant Co. office. Please note: Our neighborhood and the surrounding ones, are on schedule for Cheaspeake leasing. They have holes in the ground very close to us already. Are you planning a neigborhood q & a prior to any proposals being handed out. Like I said in prior emails, if a group of people jump the gun and sign with anyone, it will pretty much dictate how the remainder of the subdivision will go. Once a "rival" company knows an area is already being leased up, they usually move on. We must be proactive............


----- Original Message ----
From: Jon Wise <jonwise@kw.com>
Sent: Tuesday, January 30, 2007 11:24:10 AM
Subject: FW: Gas Drilling Alternative for Neighborhood.
Here is great information form Gary Kidwell.

Jon

-----Original Message-----
Date: 01/30/2007 08:34AM
Subject: Fw: Gas Drilling Alternative for Neighborhood.

Hi to all,

The enclosed message, and attachment is for informational purposes only. The Gas Drilling process is surely coming to your Neighborhood, and soon. A word of caution, be pro-active, and prepared for these ( for sure) coming events. You, your Neighborhood Association and other Residents can have much better control of this process.

GOOD LUCK.

Gary Kidwell
Representative District Six.



----- Original Message -----
From: G. B. Kidwell
To: Bill Wilson ; Julia Walsh ; Pat Tomerlin ; Mary Manning ; Lutha Jones ; Ron Johnson ; Tom Hampton ; Dorothy Gray ; Ginger Cary ; Kirby Bush ; James Alling
Cc: Kathy Baxley
Sent: Tuesday, January 30, 2007 7:54 AM
Subject: Gas Drilling Alternative for Neighborhood.

Hi to everyone,

After attending a Greenbrier (north/south) Neighborhood Meeting this past evening at the Greenbrier School Cafeteria, I was very impressed with a ongoing bidding process, between Colt Exploration, and Dale Resources Landmen.

Greenbrier Neighborhood Association called the Public Meeting, and exercised total control of the presentations, length of time, and prevented contract discussions with any residents. (at least 300/plus very concerned residents in attendance) Dale Resources had their process last Thursday, Jan. 25th, but were held in check by the Associations Printed Agenda.

The enclosed attachment explains who is doing what, in difference to the offer we received. (Note the top line, and who owns Colt Exploration).

Let me know your thoughts about engaging them in a process to cause Dale Resources to recognize the bidding process within our ongoing project.. I'll know more after the next Scheduled Meeting with Four Sevens Resources Owner and Landmen at, Greenbrier Elementary School Auditorium Wednesday, January 31st, 6:00pm.

This is the process we have always advocated, and all interested parties are invited. It's finally working, and can only gain momentum.

Gary K.

Monthly Public Meetings to Begin

From: City of Fort Worth Community Relations Department -- Neighborhood Office
Sent: Wednesday, July 19, 2006 2:04 PM
To: List Member
Subject: City Will Hold First Gas Well Public Meeting July 27

As part of its gas well education efforts the City of Fort Worth will begin holding monthly public meetings the last Thursday of every month at 6:30 p.m. in the City Hall Council Chambers, 1000 Throckmorton, St. The first meeting will take place July 27. The meetings will include a video presentation of the gas well drilling process and give Fort Worth citizens an opportunity to get answers to any questions or concerns they may have regarding this topic.

Listed property owners as well as residential tenants at least 1,000 feet from a potential gas well site will receive a notice in the mail including the contact information for the operator seeking to drill near their area and information on the monthly public meetings.

"We encourage Fort Worth residents with any questions about gas drilling in their vicinity to attend these public meetings to learn more about the process," said Fort Worth Gas Well Inspector David Lunsford. "The public meetings will provide an excellent opportunity for residents to get to know this city's gas inspectors and the role they play in ensuring the safe operation of gas wells within our city limits."

The Fort Worth City Council recently adopted a revised gas drilling ordinance that includes additional requirements for gas wells within 600 feet from an existing protected use structure such as a home, school, church, hospital, public building and park.

Council first adopted a gas drilling ordinance in December 2001 in response to requests from private companies for drilling within Fort Worth city limits. At the time the original ordinance was adopted, most permits were issued for gas wells drilled on privately owned property located in sparsely inhabited areas in northern Tarrant, Denton and Wise counties. Since 2001, drilling has moved farther south, west and east into more populated areas of the city.

As a result, council appointed a Gas Drilling Task Force last fall to examine the ordinance and how drilling impacts neighborhoods. The task force conducted a series of public meetings before making its final recommendations to council in May. In addition to the required 600-foot setback - which can be closer with council's pre-approval or property owner waivers - the revised gas drilling ordinance requires:

* A 200-foot setback from existing or new construction of protected uses.

* Operators are required to measure ambient noise levels before drilling and then install controls that prevent noise from rising above these levels by more than five decibels during the day and three decibels at night.

* Closed-loop mud systems, which eliminate open mud pits, must be used on wells that are closest to homes.

* Fencing and landscaping improvements that provide security and blend with surrounding uses.

The purpose of the changes is to further protect surface property rights while providing for the orderly exploration, development and production of gas in and under the city. The city's revised gas drilling ordinance, which affects both private natural gas drilling and the city's gas lease program, is available online at www.fortworthgov.org.

For more information on the gas drilling in Fort Worth, call 817-392-2851 or visit http://www.fortworthgov.org/engineering/gas%5Fdrilling .