Disclaimer

Information on this site is provided by property owners in your area who have volunteered to help organize fellow property owners in group mineral lease negotiations. In no case should the information on this site or in any other communication be construed as legal or professional advice. Although options may be presented along with opinions and potential benefits of certain choices, each property owner should conduct their own research and seek the advice of legal, financial or mortgage professionals before accepting or rejecting any lease offer.

The NorthEast Arlington Organization (NEAO) shall be held harmless while working on the behalf of registered property owners to negotiate agreements with one or more energy companies and/or their agents regarding terms for mineral leases. It is the intent of the NEAO to negotiate the best agreement possible and present such proposal to registered homeowners for consideration. The NEAO does not recognize or assume any fiduciary responsibility or relationship to any property owner or entity, now or in the future.

The NEAO will work without personal compensation to NEAO leaders and volunteers, but will seek reimbursement of expenses incurred in the operation of the NEAO (including attorney costs) as part of the terms of a negotiated agreement.

Registration does not obligate you to sign the lease that is negotiated and endorsed by the NEAO.  You are free to negotiate your own agreement, if any, with any entity seeking to drill wells in the area. However our research indicates that negotiating as a group can be beneficial. Your registration indicates your interest in such drilling and group lease negotiations.

NEAO members are free to terminate their membership with the organization at any time.

Mineral rights owners who choose to join the NEAO and also choose to decline to sign one or more direct lease offers from any entity, do so assuming several risks that include, but are not limited to:

1. the risk that the NEAO may be dissolved, divided or dysfunctional
2. the risk that the NEAO may not be capable of organizing mineral rights owners in the area, or to an extent that results in a critical mass of negotiating leverage
3. the risk that the NEAO may not be capable of creating a competitive environment by attracting the interest of multiple energy companies in leasing the NEAO area
4. the risk that the NEAO may not be capable of negotiating a group lease
5. the risk that one or more energy companies who have made direct mineral lease offers to the owner may choose to withdraw from negotiations with the NEAO, leaving the mineral rights owner with only a direct lease offer which they had previously chosen to decline
6. the risk that one or more energy companies who have made direct mineral lease offers to the owner (which the mineral rights owner has chosen to decline) may choose to withdraw any and all offers while also withdrawing from negotiations with the NEAO, leaving the mineral rights owner with no mineral lease offer
7. the risk that the lease terms that may be eventually negotiated by the NEAO may not sufficiently improve upon the best direct offer made by an energy company, and that the negotiations may not be concluded in a sufficiently timely manner, to have been (in the judgment of the NEAO member) worth holding out for (i.e., worth the assumption of all other risks)
8. the risk that some (perhaps many) NEAO members may choose at some point to no longer assume the above risks (even at a late stage in the negotiation process) and break ranks with the NEAO, diluting the NEAO's negotiating leverage and the attractiveness of the NEAO to energy companies
9. the risk that the NEAO may have been able to negotiate more favorable terms (in the judgment of the NEAO member) had the NEAO a) chosen to reach a negotiated agreement in a more timely manner (not continuing beyond the point of diminishing returns in the negotiations), or b) chosen to reach a negotiated agreement in a less timely manner (not settling before reaching the point of diminishing returns in the negotiations)
10. the risk that a competing energy company may offer better lease terms (in the judgment of the NEAO member) to mineral rights owners in the NEAO area after the NEAO member has signed the endorsed lease

The NEAO will not be responsible for any losses, at any time, related to the above risks or any other risks, as a result of the decision of a property owner to register or not register with the NEAO, or to sign or not sign a lease endorsed by the NEAO.

Property owners who have already signed a lease may register with the NEAO, however the NEAO makes no representation that it will in fact be able to negotiate on their behalf or include them in a future negotiated group lease agreement.

The NEAO makes no representation that it can or will contact every mineral rights owner in the NEAO area to make them aware of the existence of the NEAO or of a negotiated lease agreement.

The boundaries of the NEAO as described on this website are not definitive and may expand or contract before a final Agreement is reached with an energy company which will include a final map defining the NEAO boundaries.The final area map will be posted on the NEAO website once a formal agreement is announced, and will be the geographic basis for determining which mineral rights owners qualify for the negotiated lease, subject to other provisions in the Agreement.

The NEAO will not represent or support a member in the case of a dispute over mineral rights ownership.The NEAO exists solely to organize, and negotiate on behalf of, the legally recognized mineral rights owners in NEAO area. If a NEAO members discovers that another entity has made a claim of ownership to their mineral rights, it is the responsibility of the property owner to choose to dispute such a claim.  The NEAO will not be party to such a dispute.  The NEAO is neutral regarding who owns mineral rights in the area, and exists to negotiate on behalf of the legal mineral rights owner as recognized by the State of Texas.  The NEAO does not exist to ensure that a registered property owner owns their mineral rights. The NEAO will welcome membership of an any entity that claims ownership of mineral rights in the coalition area, even if that claim is disputed by another party.

The NEAO may engage an attorney whose role is to provide general counsel to the leadership of the NEAO, assist in the development of a proposed lease, and actively represent the NEAO in lease negotiations.The NEAO makes no guarantee of the effectiveness of the attorney in accomplishing the goals of the NEAO.The NEAO attorney will not be authorized to provide individual legal services to NEAO members.  Members may choose to engage the NEAO attorney (or their law firm) to provide private legal services, but only to the extent that such services do not create a conflict of interest with the primary role of the NEAO attorney.  Any such engagements and related costs are the sole responsibility of the individual(s).

Each mineral rights owner who chooses to sign the negotiated lease is responsible for ensuring that the lease they are signing is in fact an accurate representation of the lease that was endorsed by the NEAO, containing all language and terms negotiated by the NEAO. A link to the full text of the endorsed lease will be made available at the bottom of the Signing section.

It is the responsibility of the NEAO member to read this Disclaimer page before registering with the NEAO.  This Disclaimer page may be modified from time to time without notification.

Selected content on this page written by Daniel Delph and used by permission.