Michael,

Does this mean its time to start negotiating with the same folks for a settlement on our individual land royalty payments? Or have you already done that for yourself? I'm agreeable to begin speaking with the NG companies so that they don't remove the gas without my knowledge, my permission, or me getting paid for whats under my property. If you have already negotiated an individual settlement, do you have a contact within an equitable NG company that you might reccomend?

I certainly would like to start receiving royalty payments sooner rather than later.

Your thoughts?

Chris Rainone,
8912 Peninsula Club Circle.

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Answer:
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Chris:

First, I don't own mineral rights so even when this is done, I will not be signing any contracts. I am here just to help you help yourself.

Second, as far as I know, no neighbors have been offered any contracts yet. However, since the city owns most of the property (and gas), and the city is opening up for bids, the drillers will be quick to start working our neighborhood.

From what I've seen in other areas, a bunch of "flim-flam men" (there is probably a more accurate and less nasty term) will descend on the neighborhood. They will begin making offers hoping to catch unfortunate souls who are too anxious to wait for negotiations. These guys then "flip" the contracts at a profit to the bigger players. The rest of the neighborhood will probably be patient, stick together, and negotiate with a real player to get more money. I HIGHLY recommended that you participate in all of the neighborhood meetings from now on. I will share any information that I have and listen to your concerns.

As far as timing, the "gas train" is moving very quickly. Since the city owns most of the minerals out here, it is in the driver's seat as far as timing.

A concern I hear from the neighorhood is, of course, where to put the wells. The neighbors need to get together NOW to decide how to make decisions going forward. I will not be taking on the role of "judge and jury" on what happens out here. YOU (the neighbors) will be working together to make decisions. I will only pass information back and forth and oversee the process when necessary.

Sincerely,

Michael Dallas
President
Scenic Shores Neighborhood Association