Our initial assessment of energy companies was based on our belief that one of the two companies would be able to negotiate with CAMRA and become a partner of choice based on our collective requirements and our value proposition.  Additionally, the only well site options providing coverage for the CAMRA properties were controlled by XTO and Chesapeake. For two months, we worked long and hard to first try to secure a lease that best suited CAMRA.  We also worked to establish a good working relationship through the negotiation process in order to determine what type of partner each company might be after a deal was struck.   We carefully considered the past performance and current actions of each company as well as their stated intentions to focus in our geographical area.  In assessing all of the selection criteria and the above critical factors it was determined that we could not reach CAMRA minimum requirements and lease goals with either of the two companies in the process.  In the mean time, CAMRA was able to independently secure three (3) well site locations which could also cover ~90% of all the CAMRA properties.  This move now provided options and opportunities for new potential energy partners.  We investigated three (3) other new candidate energy companies; Harding/Petrocasa (now Chesapeake), Carrizo and Titan/Caffey and determined only one of all the energy companies met the needs, requirements and objectives of the CAMRA coalition. That company was Titan/Caffey. 

Why didn’t you go out for a best and final with Titan/Caffey and the two other companies?

As stated above, Titan/Caffey achieved the highest bar marks...

The Titan/Caffey Proposal provided the following:

          An excellent lease with superior homeowner favorable terms and conditions, including several environmental and operational provisions in the lease that will address our concerns about retaining the quality of life in our community.

       Outstanding and superior financial terms including bonus, royalty offering and other royalty provisions.

               Lastly Titan/Caffey came to the table enthusiastically, with fairness, equity and a high consideration for CAMRA needs.  They demonstrated the highest level of integrity, a straight forward behavior, with a high priority and desire for a long-term relationship with CAMRA.

As a result, we negotiated directly with Titan/Caffey, achieving the desired and required goals we all sought.