Thursday, Jul. 03, 2008

Southlake Residents to Receive $20K Gas Checks

By Nicholas Sakelaris

Staff Writer

Lured by thousands of dollars in signing bonuses, hundreds of Southlake residents gathered to sign their natural gas leases last week. The event featured free barbecue.

More than 200 Southlake residents attended the signing parties on June 25 and June 28 at St. John Church on Kimball Avenue.

"Everyone’s happy. It becomes like a social event. It was very positive," said Jeff Wang, chairman of the SECC, an area bounded by Southlake Boulevard, Texas 26, Carroll Avenue and the eastern city limits. "Everyone was already ready before we opened the gate."

The economy should get a big shot in the arm over the next few weeks as members of the Southlake East Corridor Coalition get bonus checks valued at $20,000 per acre from XTO Energy.

"The economy slows down and we feel so fortunate to have this money coming out of the ground," Wang said.

Property owner Sean Brown will use the money he gets for leasing his 2.5-acre property on Nolen Drive to develop a 35,000-square-feet of office space there.

"It’s very ironic. The Earth is giving us the money we need to develop the top of the land," he said. "We get to continue building."

The lease is the culmination of more than three months of negotiations with XTO Energy to get the best possible deal, Wang said.

Wang volunteered hundreds of hours of his own time developing the lease language for SECC residents. The final signing bonus was a $1,500 increase over the gas company’s original offer.

"[Wang’s] a genius," Brown exclaimed. The first signing party on June 25 drew about 70 people to the church and would have attracted more, but a heavy thunderstorm interrupted the party.

For the second bash, XTO brought in Feedstore BBQ to cater the event, St. John donated its facilities, and this time the weather allowed many nearby residents to walk to the event. After signing, the mineral owners received a voucher and within 10 days they’re expected to get their check.

But the relationship isn’t over when people cash their checks. When the wells start production, mineral owners will start getting royalty checks of 25 percent throughout the life of the well.