Published: April 14, 2008 06:30 pm      

Lease holdouts ask for support

Dozens of Burleson residents attended Thursday night’s city council meeting to show support for the Community of Gas Lease Holdouts as Bill Mahanay addressed the council on the organization’s behalf.

Mahanay asked the council for support in educating the public about mineral rights lease offers. He said owners of more than 500 Burleson properties — including 10 city of Burleson properties and four Burleson ISD campuses — refused to sign gas leases, holding out for higher offers.

“Burleson business owners need some organization that can effectively dispense valuable information to them for their benefit and also for the benefit for their customers,” Mahanay said. “Mayor [Ken] Shetter and city council members, if it is legal for you to do so, we would like for you to use your influence to encourage residential and business owners to educate themselves as to what is in their best interest before they sign anything relating to gas leases.”

Shetter said although the council suggests people do whatever they can to educate themselves, the council cannot become involved in politics between the Community of Gas Lease Holdouts and the gas leasing company.

“As your elected representatives, we encourage you to speak with one voice, but the city council can’t say what’s a good deal and what’s not,” he said. “At some point, you have to sit down and negotiate.”

The council also approved a bid from Chesapeake Energy for an 18 month natural gas lease of about 20 acres of formerly city-owned land on Farm to Market Road 731, which was sold to the state in 2000. Burleson retained mineral rights.

Chesapeake will pay the city $9,364 per acre, and a 25 percent royalty will be deposited in the Community Facilities Gas Fund.

The bid matches the city government’s highest offer, which was made earlier this year, said Peter Krause, director of parks and recreation.

“There is no proof the city could get more money,” he said.

Several council members voiced agreement that their decision to accept Chesapeake’s bid was not intended to interfere with Burleson residents’ efforts to hold out on signing gas leases.

“I don’t think the council’s decision to accept this offer will affect bargaining,” Councilman Dan McClendon said.

The council also approved Chesapeake’s request for a gas well drilling permit for three wells on an existing pad site at 933 Wicker Hill Road and one gas well drilling permit on an existing pad site at 491 Wicker Way.

XTO Energy Inc.’s request for a gas well drilling permit for three wells on an existing pad site at 330 W. County Road 714 was also approved.

Additionally, the council awarded the first part of the construction manager at risk contract for Bartlett Park Recreation Center to Hill and Wilkinson Ltd. The agreement allows the city to know what the guaranteed maximum price of the project will be before construction begins. Hill and Wilkinson has completed 11 projects for the YMCA and multiple projects similar to the Bartlett Park Recreation Center.

“I’m just really excited that the plans for the recreation center are moving so quickly,” Councilwoman Claudia Humphreys said.