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CAMRA: Colleyville Area Mineral Rights Association
Member Updates
"All Good Things Gotta Come To An End!"
November 25th 2008
The CAMRA deal terms will be ending soon. If anyone has not signed their lease yet, the negotiated Terms and Conditions will be ending very soon. A contract will still be available however it will NOT be with CAMRA terms. I will provide exact details in the next few days. Stay tuned!
Regards
Grady
THE CAFFEY GROUP WILL PROVIDE YOU WITH A COPY OF YOUR GAS LEASE.
BE PATIENT PLEASE!
2 November 2008
Just a couple of quick updates for everyone.
FIRST: Drafts are still going smoothly. As of October 31st the Draft list shows to have funded ~3,100 homeowners/mineral rights owners. We are getting to the end of the list and should have all of our folks paid very soon. Most all of the Drafts now being paid are homeowners that were added after the original CAMRA deal was “inked” or those that were delayed signing their lease for what ever reason.
SECOND: I have spoken to Mark Caffey (The Caffey Group) and he will be providing a recorded copy of their gas lease to every mineral rights owner. PLEASE be patient. This is only going to occur after all of the leases have been funded and recorded. So as per Mark(C) everyone will received a copy, so please be patient and give them time to make this happen. They are still working on title research, funding Drafts, correcting issues and other special situations. So they must complete the task at hand before taking on this effort which is very labor intensive and costly.
In summary everything is still on track, going well and we should “turn the lights off” soon. The Caffey Group and Titan are doing an Outstanding Job! I appreciate everyone limiting their phone calls and e-mails when only absolutely necessary and allowing the CAMRA Leaders to do some of the “legwork”, Thank You! I will continue to post updates as needed so please continue to monitor the website.
Regards
Grady Walker
SO WHAT’S GOING ON AROUND US AND WHAT DOES ALL THIS MEAN TO CAMRA MEMBERS?
23 October 2008
We are all reading and hearing about Production Companies pulling back, revoking offers, and watching natural gas prices drop.
The question on all of the CAMRA homeowner’s minds is what does this mean to our HOMEOWNERS who have signed leases and are waiting for funding. For others they are asking what this means with respect to production plans. Then everyone is asking what all of this means for our Partner, Titan Operating.
Let me cut to the chase first. Titan is strong, secure and still right on track with their game plan for CAMRA. The CAMRA Project has been leased, right on track to finish funding the drafts and looking at how we will move forward into the next phase. I have answered more questions and concerns from our members about drafts, number of banking days, will I get paid, when will I get paid, and many more questions than I would like to admit. I don’t mind fielding these questions and concerns and I recognize that our homeowners are concerned but as I have said and continue to tell our folks, let the process work. To date, of all the inquiries and traces I have made on behalf of our homeowners, and there has been many, I have been involved in only two(2) instances from over ~2680 leases that have been funded as of 22 October 2008, that was not funded on the target due date. Now for those of you that believe in “Murphy” I am going to let you take a wild guess on who one of the two people I investigated was. Now I am not saying there might not have been another one or two properties that got delayed because of title, bank issues or something that was beyond someone’s control and maybe within their control but it has been the exception. The Caffey Group has and is working hard to get Drafts funded on the target due date. At present they are on track and paying our homeowners on or before the target date. So to all of you who are waiting for your Draft to be funded, I ask you to have a little patience. The funds are in the Caffey Bank waiting to be release after Title has been run. Remember “All good things come to those who wait.”
Again please have a little patience and remember that the 30 banking day agreement is between the time that the Caffey Bank receives the drafts and the time that the Caffey Group releases funds to be send back to the originator. Any other delays are a function of the time it took to get the draft there or to get it back. It is NOT a part of the 30 business day process.
Let me talk briefly about other events. You are reading and hearing about Energy Companies revoking or rescinding their lease offers that they have on the table. On Saturday evening Titan Operating suspended leasing with the BC-MRC Coalition. This decision was not made lightly. The financial investment company for Titan Operating directed a reduction in capital expenditures based on current economic market trends, natural gas prices and competitive leasing offers. People need to remember that Titan uses private funding and is NOT a publicly held company. When using private funding, companies do NOT have sole autonomy. It is Titan’s desire and goal to find a workable solution for all parties if at all possible to solve this issue. Titan is schedule to meet with their investors this coming week to try and find a workable option for all parties. They are then scheduling a meeting with BC-MRC leaders to review their options.
In the meantime, the City of Colleyville was scheduled to vote on leasing the City property to Titan Tuesday evening. As a result of the BC-MRC suspension many of the HOA leaders and citizens from the BC-MRC Coalition turned out for the City Council meeting. This meeting agenda item was very emotional and generated some very heated discussions. The final outcome is that the City Council voted to allow the City to enter into and accept the Titan Operating offer to develop all City property. During this session, principles of Titan and the Caffey group were subjected to professional and personal attacks as were some of the City Counsel members. Some individuals allowed emotion to override common sense and decency.
Based on many considerations, on Wednesday afternoon Titan Operating formally rescinded the existing gas lease offer to the BC-MRC Coalition. They are still scheduled to meet first with their investors and then with the BC-MRC leadership Team. It is everyone’s desire and goal to identify an amenable solution.
So what does this mean for production of the CAMRA properties? At present Titan is on track and moving forward as planned. Keep in mind we are talking about drilling in ~24 months, not tomorrow. What will drive drilling in ~24 months is the economy and the price and demand of gas then not today’s prices and economics.
There is still much going on in our economy that not only effects leasing and drilling opportunities in our area but directly impacts our neighbors, are friends and our Partners. Emotions and concerns are running high and I want to ask everyone involved and impacted by the gas leasing, those that have signed, are waiting to sign, have been paid or are waiting to be paid are working on a deal or their deal is on hold to not let emotions override and drive your actions. There are NO “bad guys”, just bad situations. I know there are options that can address the current situations but we must keep an open mind which might require a creative approach.
And finally I would like to ask everyone to take a second before they make statements, send e-mails or take any actions to consider the impact of your words and innuendos on the people you direct them to. In most cases these are your friends and neighbors. The actions you might take may also have a much greater ramification than you have considered so please give thought to who and what might be impacted by your actions.
All The Best
Grady
A CAMRA UPDATE
23 September 2008
Two(2) Town Hall sessions were held on Saturday September 20th at Good Shepherd Catholic Community. Mark Shumaker President of Titan Operating, held two(2) informal sessions for approximately 100 CAMRA members. The presentation and the question and answer session was informative. As a result of the low attendance for each session on Saturday we have canceled the scheduled session for Thursday the 25th. As we get closer to permitting and the drilling process there will be additional Town Hall sessions scheduled.
DRAFTS ARE FUNDING !!!
Drafts are being funded and many of you have received payment. Again I want to remind folks that drafts will be funded within 30 business/banking days from the time that the draft is received by The Caffey Groups bank. This is the Frost Bank. The clock DOES NOT start from the time you deposit your draft. The clock is NOT 30 calandar days. Please keep this in mind.
>> A REMINDER <<
DO NOT CALL THE CAFFEY GROUP TO ASK ABOUT YOUR DRAFT!
Calling the Caffey Group only slows the overall process for everyone. The Caffey Group is receiving over 100 calls per day. If you have questions gather some information first. Call you bank or financial institution and find out when your bank sent the draft from their processing center to the Frost Bank. Almost without exception all banks or financial institutions DO NOT process drafts locally. They will send your draft via US Postal mail in most cases to their service center. i.e. In the case of Chase it goes to Houston. They then log, record and assign tracking numbers to the draft. Next they send the drafts on to the Caffey Groups bank. The Frost Bank, The Caffey Groups bank, then informs the Caffey Group that they have received the draft and the official clock starts.
So first learn when the draft reached the Caffey Groups bank by asking your bank. Then when you know the date the draft reached the Caffey Bank, count forward 30 banking/business days. If there are any holidays, yep they don't count, keep counting until you reach 30 banking days and look at the date. That is your "due date". If they finish before then you will fund sooner otherwise expect your funds on that date.
I am working on obtaining a "general" pay projection schedule to help folk's "guesstimate" when they can expect their drafts to be funded. Keep watching the website.
That's all for now. These is still much going on as we finish up and I will continue to provide updates about every week.
Regards
Grady
A Quick Reminder
TOWN HALL MEETINGS ARE SCHEDULED
18 September 2008
We will be holding three (3) Town Hall sessions. These sessions will be given by our Partners from Titan Operating and The Caffey Group. They are intended to introduce our Partners and provide an overview and updated on what happens now, when, where and how. They will be held by our Friends at Good Shepherd Catholic Community at the corner of Tinker and Pleasant Run Road. The first two (2) sessions will be held on Saturday September 20th, from 11am till 12:30pm and the again from 1pm till 2:30pm. The sessions will start and end promptly. There will be ~1 hour of presentation and ~30 minutes of questions and answers. The second session will be held Thursday September 25th from 6pm till 7:30pm. Again this session will start and stop promptly on time. We will have seating for ~400 at each session.
THE SESSIONS WILL BE TIGHT SO COME A FEW MINUTES EARLY
TOWN HALL MEETINGS ARE SCHEDULED
7 September 2008
We are quickly reaching our final signing sessions and I want to update everyone on the activities that are still in motion.
FIRST: We are coming up to our final signing sessions. For all of you who have made the signings, chatted with your neighbors and “braved” the lines, which sometimes were quite long, THANK YOU!
SECOND: For those of you who have waited for what ever reason, there are only two (2) sessions left that are CAMRA scheduled. The 11th and 12th, this coming Thursday and Friday. CAMRA will NOT be scheduling any further signing dates. If you have questions and have not signed I would suggest you download the FAQ’s and read them.
THIRD: We will be holding three (3) Town Hall sessions. These sessions will be given by our Partners from Titan Operating and The Caffey Group. They are intended to introduce our Partners and provide an overview and updated on what happens now, when, where and how. They will be held by our Friends at Good Shepherd Catholic Community at the corner of Tinker and Pleasant Run Road. The first two (2) sessions will be held on Saturday September 20th, from 11am till 12:30pm and the again from 1pm till 2:30pm. The sessions will start and end promptly. There will be ~1 hour of presentation and ~30 minutes of questions and answers. The second session will be held Thursday September 25th from 6pm till 7:30pm. Again this session will start and stop promptly on time. We will have seating for ~400 at each session. FOURTH: We will continue to maintain this website for another ~2 months. In that time there will be additional information that will be important to all our “new mineral rights owners”. I will continue to provide updates and status until I am able to transition our efforts over to the Caffey and Titan websites. Both sites are under “construction” and should be on line very soon. When it is appropriate I will “point” everyone over to their websites and that will be your point of reference from there moving forward.
FIFTH: I will be releasing either an updated version of the FAQ’s or a general “handbook” for all of you to refernece. The purpose of this will be to answer general questions that most all of you have. It will provide contact points for questions or concerns. It will help answer some questions you are going to have but have not realized it yet. i.e. How do I know what I am going to be paid on if I come into production after a title search of my property has been done? How do I remedy a question or concern I have? Etc. So it is in the works.
SIXTH: For some of you the “clock” on the Bank Drafts have already started. I know we are all anxious to get funded and make use of the new “windfall” we will be receiving. I need to remind everyone on a few details. 1) The Draft clock does not start until the draft is received by the Frost bank from YOUR bank. 2) If your bank has taken more time to get the draft to the Frost bank that delay is caused by your bank. 3) If you want to know the status of the draft DO NOT CALL CAFFEY/TITAN OR THE FROST BANK – Contact your bank. In most all cases you bank would have sent you an acknowledgement of receipt and tracking information about your draft. If you feel you have to get an update contact your bank. 4) Title work is active and in process but remember it is being run on ~4,000 properties.
I ask that you all remember this:
“All Good Things Come To Those Who Wait!”
SEVENTH: Subordination: Remember that subordination is between you and your lender. In most cases it is not required. For those that do require it our contract provides for you to recover your cost. You do need to provide a heads up if the cost is going to be high. If the cost is typically below ~$300 dollars there is not going to be any issue. You will need to complete the subordination agreement between you and your lender, pay your fees and submit a request to be reimbursed to The Caffey Group. One final reminder is that your lending institution is responsible for providing any and all documentation required to complete the subordination agreement not The Caffey Group or Titan.
As I stated we are getting close to end of our journey together. It has been an experience I know I will cherish and never forget. I have had the pleasure of meeting and working with some of the most wonderful people. I have made new friends and created a lifetime of new memories. I hope this has allowed you to meet new friends and neighbors and reconnect with folks that maybe you haven’t had a chance to in quite awhile. I will close for now but ask that you continue to monitor our website frequently for the next ~2 months.
All The Best
Grady
A QUICK UPDATE!
27 August 2008
This is just a quick update to remind folks that if you have not signed your lease yet the number of session is down to three(3). If you wait and do not make one of the last three signing sessions, the CAMRA lease, negotiated TERMS, bonus and royalty amounts are NOT guaranteed.
There has been ample time for everyone to either make a signing session or other special arrangements.
DO NOT EXPECT SPECIAL CONSIDERATIONS AFTER THE FINAL DATES.
We will also be holding two(2) Town Hall meetings. Titan will hold 2 sessions to introduce themsleves and provide their plan on how they are going to work with our community and homeowners to develop our areas. Their presentation will run for about 1 hour with approximately 30 minutes for questions and answers. The meetings are open to all CAMRA members. We will hold one session on a weekend and one on a week night. Please check the website for more information.
That is all for now and I will provide a more details update by the weekend as more information is available.
Regards
Grady
A CAMRA UPDATE
10 August 2008
As you might imagine there is still much going on and everyone is still working hard to get everything in order and work to wrap up our efforts.
I first want to say Thank You to all the volunteers who are still working very hard for all our CAMRA members, our new Partners and their TEAM, who has done an excellent job making things work smoothly and lastly I want to thank the Crown of Life Lutheran Church for hosting our first three signing sessions.
We have held our first signing session this past Tuesday and our second Saturday the 9th. We had a great turn out and it went very smoothly. At our first two signings we had Mark Nastri, our CAMRA attorney holding contract review sessions. Saturday’s contract review sessions were open to ALL CAMRA members and the attendance was strong.
After our first signing session it was noted that we had made some “typos” in the lease. We have since corrected or made the clarifications to the lease. I will post this in the lease area for members review.
We have our next 2 signing sessions on Tuesday the 12th at Crown of Life and Wednesday the 13th at Good Shepherd Catholic Community on Tinker. Note this is a location change. For more details on the signings and dates please download or view the file located in the “Signing Dates” section.
Please read the “FAQ’s” if you have not done so. There is a significant amount of information in there.
I want to REMIND everyone especially those that have already signed to make sure you make a copy of your draft for safe keeping and submit your draft to YOUR PERSONAL BANK. Your Bank will then submit the Draft to the Frost Bank. Frost Bank will then tell Caffey to start your title research which THEN starts the 30 day clock and NOT before. If you do not submit your draft your paperwork is not being processed and you will be delayed. ***AGAIN The 30 business day “clock” ONLY starts after the Caffey Group has been NOTIFIED by the Frost Bank that it has received your Draft. Do not forget to submit it.
I will provide more information about how the “”Draft” works, why they are used and what it means to you. I will update the “FAQ’s” document as quickly as possible.
We have finally come to the end of our journey. We surprised some of you by introducing a new Partner however we made an excellent choice. Titan will provide what neither of the other energy companies were able to. I have heard a few concerns about the size of our Partner. I have to remind folks that I don’t do all of my shopping at Lowes and Home Depot. I also shop at Mr. C’s and Elliott’s.
As I stated there is still much to be done and we are still working hard for you. CAMRA and Titan/Caffey will continue to work hard to make sure we take care of every CAMRA member. If you have any questions or concerns please ask one of your CAMRA leaders or one the Caffey Group representatives.
Regards
Grady
A NEGOTIATIONS UPDATE
>> July 31st 2008 <<
We will be having a Leadership meeting on Monday August 4th for all of the Leadership Team, which includes the leaders for ALL of the HOA’s, Housing additions, Sub Divisions, Geographical groups, Street groups and special properties .
Regards
gmw
“No man is poor who has friends”
Working To Finish!
A NEGOTIATIONS UPDATE
July 29th 2008
I want to provide you with and update. Our Negotiation Team is working hard as we speak to get this wrapped up. The Negotiation Team met Sunday and again last night. At this point timelines are driven in large part by our potential Partner’s ability to react to our requests. Our side is driving to have this wrapped up this week. The Negotiation Team will meet again on Wednesday evening.
Some of you are starting to see what you believe is a high offer but is really a “low offer” being sent out especially in the areas around all of the proposed well site locations. I want to remind everyone who might be close to a proposed well site that regardless of which company our coalition selects, the company that owns the proposed well site is going to want to negotiate for your “release” if your home is less than the minimum distance a City requires in its ordinance. This “release” is above and beyond anything else you would be offered. So be cautious of what you receive in the mail or comes knocking on your door. Stay informed.
We all appreciate your support as we work through the final stages.
Regards
Grady
Another Mass Mailing
DON’T SIGN ANYTHING!
A NEGOTIATIONS UPDATE
July 19th 2008
Hello Everyone
Well our friends from Colt/XTO have decided to send out another mass mailing to many of our Homeowners that are close to the new proposed wellsite just off of Shelton. Some of you are receiving their (Colt/XTO’s) lease with their (Colt/XTO’s) terms and conditions. In addition you are being offered a lower bonus rate than the White Chapel group or the Timarron homeowners. So we don’t understand why Colt/XTO wants to waste your time and their time.
WE WANT TO REMIND OUR MEMBERS, CAMRA HAS NOT ENDORSED ANY LEASE OR ENERGY COMPANY AT THIS TIME. So we recogmend you don’t sign any lease that you receive. It is NOT a CAMRA endorsed lease. When we have selected a Partner and finalized our contract we will get the word out. In the mean time you can line your “bird cage” with the lease. If you receive a call or someone comes knocking on your door, just tell them:
“I AM PART OF CAMRA AND IF YOU HAVE ANY QUESTIONS CONTACT THE CAMRA NEGOTIATION TEAM.” They can start with me.
If you receive a letter, offer of call from any other Exploration Company. The same message applies. The Production Companies see the value our Coalition brings and are hoping to break up or break off our homeowners so they can limit what they have to negotiate for.
So I would suggest that you toss the lease in to the “round can”, “file 13” or line the “bird cage” with it. Also let your neighbors know. Send them an e-mail, give them a call or send them to the web site. They will appreciate you letting them know.
If you have any questions please reach out to your Leadership Team or you may drop me an e-mail.
Regards
Grady
An Update with a Couple of Reminders
A NEGOTIAIONS UPDATE
July 16th 2008
Hello Everyone:
Time for a quick update on our negotiations and a couple of reminders.
We are still at the “tables” and working hard with our potential Partners.
We will select our Partner in July.
When our Partner has been selected we will send e-mails, post our announcement on the CAMRA website and all our HOA’s websites. We will submit Press Releases and are looking to place yard signs through out our neighborhoods. You will know when a Partner has been selected.
In the meantime it has been reported that some of our CAMRA members and HOA’s have been approached by Exploration and/or Production companies. They have been sent leases and in some cases been handed leases and asked to sign right then. You should NOT be receiving leases and should NOT have people soliciting you. If you are approached please respond with the following:
“No Thank You! I’m a member of the CAMRA. Our people are negotiating with your people.”
Please send them on their way and let me know.
I also want to remind everyone that you may also experience a “rush” of Landman to your doorstep after we announce our new Partner by the Production Company that was NOT selected. You may experience Landman trying to offer you a little more money to get you to sign an inferior contract. Our CAMRA members have told our Leaders that all of the details and protections, and checks and balances for each homeowner, their neighborhoods and the communities are more important than an extra thousand or fifteen hundred dollars. It is important to note that typically when someone signs an inferior lease like they will be required to sign if they accept the extra money, a homeowner could typically lose 5 or 10 times more than the extra amount they received over the life of the lease. This is just one of the Term’s in the contract we have been negotiating for all our members.
If it is a “good deal” tell the Landman you are going to compare the contract against the negotiated lease and get back to them. Send me a copy of the lease and we will do a side by side comparison and let you decide what you are willing to give up. If you are told that you must sign right then ask “why?” if it is a good deal.
THINK ABOUT THIS: If the contract that you are being offered from the Company that was NOT selected was exactly the same or better, with more Bonus and Royalty, wouldn’t you expect that they would have been the selected Partner?
WHAT’s HAPPENING IN TIMARRON???
Now an update on Timarron. We are not completely sure of everything that is going on with Timarron but we have received information from their homeowners and a short announcement from the management board.
Kathy Epperson, from the management board, e-mailed an announcement on July 10th indicating that the Timarron HOA Board was about to announce a negotiated deal with Colt/XTO and that homeowners should expect to receive lease packets within a week. While waiting for the XTO lease packets, Timarron homeowners have started receiving their Chesapeake lease packages that indicated Timarron had selected and accepted a deal with Dale/Chesapeake after completion of their “Best and Final” offer process about a week earlier. As you can imagine this has confused the homeowners and raised quite a bit of concern and questions. For those not familiar with the “Best and Final” process it is as it indicates. You request from your potential Partners the absolute “Best” and “Final” offer for all the Term’s and Condition’s for your lease in a sealed bid form. Included in the response to the Best and Final are the Business Terms, such as Bonus and Royalty and Primary and Optional Term. Based on your selection criteria for a Partner, a winner is selected and notified. Typically it takes a few more days to refine certain contract details into “legalese”, but a deal has been “struck”. Then a public announcement is made and everyone is notified. This process is based around negotiations in good faith.
As we learn more we will keep everyone posted. If you have any questions please reach out to your Leadership Team or you may drop me an e-mail.
Regards Grady
And then there was One. . .
A NEGOTIAIONS UPDATE
July 9th 2008
Hello Everyone:
Time for more exciting news and the latest with our negotiations. First as you have all read, the White Chapel Corridor made their official announcement. They signed with Chesapeake for $22,500/acre and 25% royalty. This ended their journey however as I highlighted in my last update the path to completion is not always as direct or as expeditious as we would prefer.
The next announcement you will hear or read about will be Timarron. They have also had an exciting journey and we expect the official announcement at anytime.
AGAIN this is GREAT NEWS for our CAMRA members. With these two Coalitions completing their efforts, this has set our base!
So the answer to the question you are all asking is this. We will select our Partner in July.
Our potential Partners have been focusing much of their efforts in our area on three (3) Coalitions. As I have reported two (2) of those have now been finalized and there is only one left from that original three (3). CAMRA. Many of you have asked your Leadership Team representative or me directly why the CAMRA negotiations seems to be taking longer and why have some other Coalitions finished in a little less time. Great questions.
The reasons are many but the answer is simple. CAMRA’s “value proposition”, what we bring to the table, is unmatched by any other Coalition in an urban drilling environment. The other Coalition’s like Timarron, White Chapel Corridor or Hidden Lakes can ONLY offer size, some amount of acreage, and unity, do I have all the homeowners, and is the land spread out or condensed, to an Energy Company.
If you want the best terms and conditions, along with the best bonus, royalty and primary terms you must offer more than size and unity. CAMRA offers more than size and unity. The top six (6) value proposition items we offer besides having a large size and strong unity are:
1) Two(2) NEW well sites
2) The ability to provide coverage of our own CAMRA properties
3) New coverage areas beyond CAMRA’s “footprint”. This offers new opportunities to an Energy Company
4) Mitigation of “risk” during the permitting process
5) The potential elimination of two (2) high impact/risk areas.
6) A “One Stop Shop” for our selected Partner
What this requires is a little more due diligence at the negotiations table. That means a few more “balls” in the air and a little more time. So what does this mean? The result to our coalition is more favorable terms and considerations. Our goal is a “Win – Win” with our new Partner. We will step away at the end of the day and both sides will feel good about what we have achieved.
The CAMRA coalition is high visibility and offers a significant “WIN” for one of our potential Partners. We all recognize that the value to our new Partner is what we bring as “ONE” strong unified TEAM! Some of you may still be receiving a request to break off and sign up with a separate lease by someone. I will remind everyone, that this will not be the lease with our terms that we are negotiating for. We are coming down to the finish line and we are all going to win TOGETHER! When we have made our selection we will make a public announcement and will tell everyone when and where signing parties will be.
If you have any questions please reach out to your Leadership Team or you may drop me an e-mail.
Regards
Grady
Another one will fall and the bar will move up!
A NEGOTIATIONS UPDATE
July 1st 2008
I want to catch everyone up with our negotiations and what else is happening in the area. Let me start with the area. The White Chapel Corridor coalition has been working hard to finish their contracts with their potential Partners. After a number of review and revisions of their gas lease, they were able to get fairly close on their contract Term’s and Condition’s. From there they scheduled conference calls between each of the potential Partners, their negotiation Team and Attorney. This past Thursday and Friday their negotiation Team along with their attorney were on conference calls working through the finer points and details. From there they requested a “best and final” offer on the “contract terms” along with the “business terms”, which include bonus and royalty. The “best and final” were presented to White Chapel Corridor Group Monday afternoon at 5PM. Their Attorney at that point proceeded to review the two offers and generate a comparison and assessment. The results were given back to their negotiation team for review and consideration. In so doing they will select a Partner and make an announcement. At that time it is my expectation that our “bar” will move up again a little more. Great news for CAMRA.
I wanted to share those details with all of you so that you understand what must occur to bring this process to a head and a final conclusion. Our Negotiation Team met this past week and worked through some critical areas. Immediately following that session our CAMRA Leaders, for all of our HOA’s and Geographical groups met and were updated on the current lease revision by our legal counsel. We discussed every item within the contract and questions were asked and answered. The Negotiation Team met again this past Saturday morning for ~ 3hours. All day Monday, 30 June, was spent with a well site engineer at the new well sites that are part of the CAMRA value proposition. One of the goals of this meeting was the reduction or elimination of the “setback” concerns. It was a very productive meeting.
We are approaching the July 4th weekend and are attempting to work around individual’s vacation schedules. We are driving forward and chipping away at the small number of details that are still outstanding.
The CAMRA coalition is high visibility and offers a significant “WIN” for one of our potential Partners. We are offering more than any other Coalition you have read about in the area. We all recognize that the value to our new Partner is what we bring as “ONE” strong unified TEAM! Some of you may still be receiving request to break off and sign up with a separate lease by someone. I will remind everyone, that this will not be the lease we are negotiating for. They will attempt to have you sign away all of your protections for a few more dollars. We have heard of individuals asking homeowners, business’s and HOA’s to sign up. In some cases there isn’t even well coverage. You should not see any potential Partner contact you but you might have another individual asking you to for some other reason. If you are contacted by anyone I need for you to let me know. We are coming down to the finish line and we are all going to win TOGETHER!
If you have any questions please reach out to your Leadership Team or you may drop me an e-mail.
Regards
Grady
Read the "fine print"!
A NEGOTIAIONS UPDATE
June 24th 2008
So where are we at? Have we picked a Partner? We have all heard the warnings. “READ THE FINE PRINT!” We are in the “Fine Print”. I hear from HOA Presidents, CAMRA Leaders and individual homeowners on a daily basis. Their number one concern? The “Fine Print”. All the “devils and details” that help us all sleep better at night knowing for example that our new Partner is well insured, and is agreeing to “not travel upon or use in any way or manner (including the parking of any vehicles) any of the inner-residential streets” …”of a subdivision or neighborhood”…”except in an emergency situation and only for the duration of said emergency. ” These are why it takes time to negotiate the best terms we can for all of our homeowners.
There is a misconception that all contracts are pretty standard with only minor tweaks and the real difference is the Bonus and Royalty. The reality is the Bonus and Royalty are only 2 of ~40 “Items” that contain ~75 separate “Details” that all have to be addressed and/or negotiated. Are the Bonus and Royalty important? ABSOLUTELY! But are they the most important items as expressed by our CAMRA homeowners? Not according to CAMRA homeowners. You can now better understand why “ALL CONTRACTS ARE NOT CREATED EQUAL.”
This also is where we start to see differences between our potential Partners. Not just in the contract but in the negotiation process. As we move through the negotiation process not only do we learn about our potential Partners but they learn about us. Are the Companies responsive to your request? Do they meet deadlines? Do they return phone calls? How the Companies work with you when you are negotiating can be a clear indicator how they will work with you when they are selected as your Partner or if they are NOT selected as your Partner.
We have all read or heard stories about what can happen to Coalitions and their homeowners when a Partner is selected and announced. For the selected Partner plans are made for signing parties and a time to celebrate. In some cases we have read and heard where a Company who was not selected immediately reached out to homeowners asking them to now sign “their” lease and they will give them a little more Bonus money. And yes there are homeowners that quickly forget “ALL CONTRACTS ARE NOT CREATED EQUAL”. Remember, the contract is the reason it took the time it did to negotiate the deal. The homeowner did not understand that by taking a different contract could weaken many or all of the protections they and their neighbors worked hard to get.
We are working to lockdown our Term’s and Condition’s and will be reviewing and generating our response to the most recent contract revision tonight. We will also be updating the Leadership Team this evening so they are current.
It is important that our homeowners understand what our potential Partners are negotiating for and what they see. In our meetings with each Company we presented to them CAMRA and its “Value Proposition”. I also want each homeowner to see what our potential Partner sees by sharing a map of the CAMRA “footprint” and what we are bringing to the negotiation table. On our website under the “AREA MAPS” button you will find a link to view or download the “CAMRA_Map.pdf”. This map does not reflect the most recent updates but is current. Please note that properties in “pink” are under lease with Dale/Chesapeake, in “red” with Colt/XTO and in “blue” with DDJET (Harding/Petrocasa). CAMRA is indicated in "yellow" although some areas appear slightly "green". The identifications are not meant to be all inclusive and do not reflect all of the properties and their current status. We only focused on the properties and areas that most directly affected CAMRA. Please spend a little time viewing and reviewing CAMRA and our Potential Partners well site locations. Pay attention to coverage areas, the contiguous areas and location of CAMRA with respect to well site locations. The value we bring is before your eyes.
As you can now clearly see we have much more to offer which separates us from the general Coalitions you have seen written up in local papers. Our potential Partners see this and recognize the value we bring. We are working hard for you and now you better understand why patience will yield value.
If you have any questions please reach out to your Leadership Team or you may drop me an e-mail.
Regards Grady
The Bar Is Moving
A NEGOTIAIONS UPDATE
June 17th 2008& |
