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Newsletter of the CandleRidge Homeowners Association
From the President, October 2007
We had a capacity crowd turnout for the General Meeting of the CandleRidge
Homeowners Association (CHA) at Woodway Elementary on September 17th.
We wish
that everyone had attended the meeting to support our community above ground,
but we know that most of the interest was generated due to potential leases for
gas underground.
Due to this interest, we wanted to send out a special newsletter edition
to update you on the meeting and the actions that the CHA is now taking.
The following is a summary of the General Meeting:
The vertical CandleRidge signs on the greenbelt and in the park are
deteriorating.
We have met with the FW Parks Department and the Board of
Directors is working on getting the signs replaced.
The par course exercise equipment in CandleRidge Park was removed by the FW
Parks Department due to unsafe conditions.
Based upon an overwhelming mail-in
response by our households, the CHA will be purchasing some replacement
equipment after the FW Parks Department schedules the installation.
Dr. Melody Johnson, FWISD Superintendent, made a presentation about the $593.6
million bond election coming up on November 6th.
Please take the opportunity to become informed and make your voice heard with
your vote.
You may find information about the specifics of the use of the bond money on the
web at www.FWISD.org.
Our District 6 City Councilman, Jungus Jordan, provided an update on the Fort
Worth budget (which surpassed $1 billion for the first time) and discussed the
city employees retirement fund shortfall, which the city council has creatively
addressed in partnership with the employees.
Jesse Torres, a FW City Planner, provided a presentation of zoning regulations
applicable to the size of CandleRidge lots.
The FW zoning regulations have
changed so that it may be possible for some property owners in the CHA to split
their properties into multiple smaller lots.
He discussed the many disadvantages
to allowing this to happen.
Following his presentation, those present at the
meeting voted to request the City Council to zone all applicable properties in
the CHA from A5 (5,000 sq.ft..minimum) to A10 (10,000 sq. ft. minimum).
New officers for the upcoming year were elected (as shown below). David White,
who is retiring from his position, was thanked for his untiring and successful
efforts as Chairman of the Greenbelt Committee.
Paloma Resources (Paloma Barnett,
LLC) made a presentation regarding potential
gas leasing in the CHA area.
Dale Resources, which we understand
is also interested in gas leases in the area, was invited to make a
presentation, but did not attend.
After a lengthy discussion, the CHA attendees overwhelmingly
voted for the CHA to set up a Gas Lease Committee and negotiate a 'master lease'
on behalf of CHA homeowners, which the homeowners could use at their option in
obtaining a gas lease.
The formal meeting was adjourned for an extensive
question and answer time regarding gas leasing.
We appreciate each of the homeowners who attended the meeting and hope that this
will strengthen the number of households represented in the CHA allowing us all
to work together to maintain the CandleRidge area as one of the preferred
residential communities in Fort Worth.
If you are not currently a member, please
fill out the form in the newsletter and return it to our Membership Chairman.
Thanks,
Bob Bollinger
CHA President
Gas Leasing and the CandleRidge Homeowners Association
If you have been following the news in Fort Worth regarding the Barnett Shale
and gas leasing, you know that the homeowners' associations (HOAs) have been in
the middle of the mix.
They have been very effective in negotiating higher lease payments from the gas
leasing companies (up to between $10,000 and $15,000 per acre) and have been
instrumental in ensuring that the property owners concerns regarding
environmental, safety and quality of life issues are addressed PRIOR
to drilling.
While the HOAs have often come to agreement with the leasing companies, in some
cases, the HOAs have not supported the drilling and there has been quite a bit
of friction between the homeowners HOAs and the leasing companies, especially as
the drilling comes doser to the homes.
According to the Star-Telegram, as recently as Friday, October 13th,
Brentwood-Oak Hills, Ridglea North, and Eastern Hills associations have tried to
negotiate with the leasing companies and have complained about high-impact wells
in their areas, at times trying to stop the leasing and drilling.
The dispute grew to the point where the leasing company (Paloma) set up a
"signing party" and some of the nearby residents handed out flyers and protested
near the meeting, when Paloma called police to issue trespass citations to the
protesting residents.
The CHA hopes to avert this type of situation by working
for the benefit of the CHA homeowners while aggressively maintaining
our property and lifestyles in the CHA.
CHA Actions:
The CHA Board is establishing a temporary Gas Lease Committee of the CHA for the
following purposes:
a. Develop a "master gas lease" to be approved by the Board to be available for
use by the homeowners in the CHA.
b. Negotiate with one or more gas leasing companies on behalf of the CHA.
c. Recommend legal counsel to the Board to assist the Gas Lease Committee.
d. Work with other neighborhood associations and nearby property owners as the
Gas Lease Committee deems appropriate
The Gas Lease Committee will consist of a minimum of five (5) CHA members and no
more than ten (10) CHA members, maximum of one (1) per family on the Committee.
The Board will select the members from CHA homeowners who express an interest in
serving on the Committee.
Bob Bollinger, President of the CHA, will serve as interim chairman of the
Committee until and unless a new Chairman is selected by
the Committee.
Call for Volunteers:
If you have particular related expertise and interest in serving on the
Committee, please provide the information requested on the form on page 2 ASAP
to Bob Bollinger either by mail, email or drop it off at his house. [Please
Note: The Gas Committee was formed in early November. 2007]
The Players:
Currently, we are aware that Paloma Resources and Dale Resources (as an agent
for Chesapeake) are contacting homeowners regarding gas leases, and both have
already signed some lease agreements.
The CHA is also checking with other gas
leasing companies to see if they are planning drilling activities in the CHA
area.
Drilling the wells and actual operations will bring some congestion to
the area as equipment is brought in and out, and noise levels will increase for
a period of 1to 3 years, or more.
All operations will be regulated by City of
Fort Worth ordinances and the Texas Railroad Commission regulations.
Paloma Resources:
Paloma Resources has actively courted the CHA to establish a 'master lease for
the homeowners to use, and sent out a letter on October 1st to the community
recommending that homeowners work with the CHA and not sign any leases until the
master lease is negotiated.
At the General Meeting, the Paloma president, Christopher O'Sullivan, and
Tarrant County Land Manager, Marc Pace, made a presentation of their current
offers to homeowners.
Without having provided an actual lease agreement with details, Paloma explained
that they are offering $4,000 per acre ($750 minimum) signing bonus, as
determined by Tarrant County Tax Assessor records, and a 25% royalty without
reduction for production costs.
Dale Resources/Chesapeake Energy
Bob Bollinger met with representatives of Dale Resources (acting as an agent for
Chesapeake), on October 13th.
Dale already has some leases in place with some CHA homeowners and is planning
to send out lease offers this week to certain other residents of the CHA with a
$5,000 per acre signing bonus and a 25% royalty.
We understand that Dale already has in place some leases in the Edgecliff
Village and Hallmark areas with the same $5,000 per acre bonus, but has recently
changed the bonus to $7,500 per acre.
Frequently Asked Questions (FAQs):
Why is the CHA involved?
Answer: There is negotiating power in the numbers represented by the
1,240 homeowners in the CHA area.
Financially, other homeowners associations with fewer than 500 members have
negotiated signing bonuses of $10,000 to $12,000 per acre and the homeowners'
lot sizes have been considered larger to include the land to the middle of the
street, conditions better than are currently being proposed.
Homeowners may be able to minimize their own legal expenses related to lease
agreements by having the CHA negotiate a "master agreement" reviewed by its
legal counsel and agreed to by the leasing company.
Environmentally and to protect property values, other associations have worked
with the production companies to ensure that the drilling sites do not become an
eyesore, that the roads are properly maintained and that noise levels are
acceptable.
Do we need to hurry to sign a lease?
Answer: No. Our understanding is that the City Council has not approved
any drilling locations in the CHA area that require us to make decisions in an
unwarrantedly fast manner, and that any expected drilling is many months to
years away.
We believe that it is in our collective best interests to move forward
deliberately, not in a rushed manner, based upon the best information and using
the experience and knowledge of our CHA homeowners who will be directly
affected.
Other communities that have been approached for gas leases have sometimes taken
over a year to negotiate conditions that minimizes the drilling and production
negative impact on the homeowners' property values and maximizing the bonuses
and royalties to the homeowners.
We already have copies of and are able to use the leases that have been
negotiated by other associations (such as Overton Park, Tanglewood, Mistletoe
Heights, and Ryan Place).
Do I have to use the CHA negotiated master lease or sign with any particular
company?
Answer: No. Each homeowner may negotiate with any company at any time.
The CHA negotiated agreements are intended to facilitate a common understanding
that may be to the benefit of the homeowner and may speed up the process.
Will the CHA help me determine if I have mineral rights?
Answer: No. The individual homeowners and the gas leasing companies are
responsible for this.
In some cases, the homeowner may also need to work with their mortgage company
to determine the impact of the lease on their mortgage.
What is the CHA doing to stay current with the Barnett Shale gas leasing
issues?
Answer: Current and former CHA Board Members are attending public
meetings and discussing the gas well drilling issues with other homeowners
associations.
For example, we will have a representative at the Fort Worth League of
Neighborhoods Gas Drilling Education Event for Homeowners' Associations'
presidents on October 23rd and at the Wedgwood East Neighborhood Association
meeting on gas well leasing on October 24th.
We understand that all of our CHA homeowners cannot attend all of the meetings
regarding this issue, and are trying to keep as up-to-date as possible.
Where are the currently proposed drilling sites?
Paloma At the CHA meeting, Paloma stated that they are planning to drill
up to 12 wells on the vacant lot on Sycamore School Road behind the old Tom
Thumb grocery store, across the street from the Sonic and the new Dabney city
park.
This would be a high-impact site, less than 600 feet required by City ordinances
and about 300 feet from our homeowners on South Ridge Trail.
Drilling will go to about 7,000 feet below the surface and extending with
horizontal drilling in a NW and SE direction about 4,000 feet, encompassing much
of CHA. As we understand, this would require a City Council variance.
Dale Resources/Chesapeake. Based on the meeting with Dale, we understand
that Chesapeake plans to drill in the area west of Trail Lake and south of Alta
Mesa/Dirks Road.
This drilling site is at the outer boundaries of being able to reach much of the
CHA area (4000 feet horizontal drilling length), and may only reach the western
part of CHA.
Dale/Chesapeake indicates that they have some experience drilling 5000 to 6000
feet horizontally.
Depending upon the gas reserve, we understand that it is possible to drill the
4000 feet and still get the gas from the reserve further away.
In this case, the homeowners may actually lose the gas under their properties
and not having the benefits of the bonus and royalty payments.
This is something our committee needs to explore with experts. Dale also
indicated that they are negotiating to possibly drill on church property at the
intersection of Hulen Street and Sycamore School Road.
