The meeting, ironically, was held on the eve of a press conference in Fort Worth focused on the Barnett Shale's up-to-date economic impact on North Texas. The meeting is set for noon today in the city's convention center.
Jim Hazard, vice president for Dallas-based Henry S. Miller Commercial, set up the special session as the quarterly meeting for the Great Southwest Industrial District Association. The organization's vice chairman said the motivating factor was 10 to 12 calls after the site was announced and the first lease was signed by Demilec USA LLC, headquartered at 2925 Galleria Dr. in Arlington, for its seven-acre site at the corner of Galleria Drive and 109th Street. Hazard says the gas exploration company is targeting properties from Division Street north to Interstate 30 and the Great Southwest Parkway west to US Hwy. 360.
Robert O'Neill, executive director for the City of Grand Prairie's economic development office, told the group that a handful of well sites are in hand and he expects 15 to 20 wells will be drilled in the coming year. Last year, the city leased 300 acres to a gas exploration company.
Shayne D. Moses, partner in Moses, Palmer & Howell LLP in Fort Worth, explained to GlobeSt.com that the Great Southwest interest is due to exploration companies now pushing east after several years of amassing leases to the west. Moses was part of the team representing the Dallas/Fort Worth International Airport board in its lease with with Oklahoma City-based Chesapeake Energy Corp. and recently bargained Dallas County's deal. Moses represents both sides of the street so he had some tips to offer, emphasizing leases must be fully defined. If they're not, he said "I guarantee you that you will end up in a lawsuit. It's better to do it when everyone's getting along."
There are 17 counties underlain by the Barnett Shale, but the focus primarily had been on Denton, Johnson, Wise and Tarrant counties. Not only is the focus shifting east, but the rules of the game are changing as property owners become more street-savvy and hire attorneys to bargain the best possible deal. Just this week, a new record was set: $25,000 per acre and 26.5% royalty.
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