Wedgwood Square Neighborhood Association

Today or in the next few days, you may receive a blanket mailer from Vantage Energy regarding their application to drill an initial 7 of an anticipated 50 wells at a drill site located in Wedgwood Square at the corner of S-820 and Granbury Road.

This mailer includes a statement of support which Vantage Energy wishes you to sign and return in a postage paid envelope so that the company can present it to Fort Worth City to support the company's drill site permit application.

Here is what you should know now and why Wedgwood Square asks you to WAIT to sign and return this waiver:

Wedgwood Square Neighborhood Association has NOT reviewed and does NOT endorse residents' signatures on this waiver or any other document presented to you at this time, as it was NOT negotiated with the Neighborhood Association and as the company did NOT inform the Association that they would be mailing this document to residents and did NOT seek neighborhood input or support to do so.

There are approximately 50 high-impact homes located in Wedgwood Square that will back up to this drill site and that could be impacted due to proximity.

The 2008 SFWA/Vantage lease agreement requires separate written agreements between Vantage Lessors within 1,000 feet of a drill site and the company, in advance of drilling to address drilling setbacks (how close some operations can be to homes) and other environmental protections included in the agreement that the company wishes to have exception to.

The City of Fort Worth requires a hearing for drill site permits when a company has not obtained the high-impact waivers from residents within 600 feet of a potential drill site, per the City's Drilling Ordinance. Vantage Energy filed its application for permits requesting a hearing in anticipation of not obtaining these waivers from the residents within 600 feet of their site.

Wedgwood Square began negotiating high-impact waiver agreements for residents leased to Vantage Energy and was making progress addressing concerns such as toxic emissions testing/capture/mitigation and pipeline location/quality testing/safety, which could protect everyone. Remember there is no magic wall around these drill sites, not at 600 or 1,000 feet that will keep emissions or other safety and quality of life issues contained within the area.

Vantage Energy ceased discussions and negotiations on this waiver and stated that the company would seek "statements of support" (like the one you received by mail) to counter the lack of high-impact waivers that the company did not obtain from homeowners within 600 and 1,000 feet of the drill site, per the Vantage Lease obligations and City Ordinance requirements.

Wedgwood Square Neighborhood Association is NOT against drilling and recognizes the company's self-created time constraints and the fact that the majority of Wedgwood Square residents are leased to Vantage Energy with a primary term expiring in the Fall of 2011.

However, Wedgwood Square wants to be sure that all of our residents are safe and protected at such close proximity to this industrial activity and further wants the company to honor its commitments set out and agreed to in the Vantage Lease and imposed by the City's Drilling Ordinance.

Therefore, Wedgwood Square asks that you WAIT to sign this statement of support until Vantage Energy honors its obligations in an honest and ethical manner, negotiates and obtains its high-impact waivers and works together with the Neighborhood Association to complete this process.

According to witnesses who attended both the Overton South and Foster Park meetings referenced in the letter forwarded to you by Vantage Energy, the attendance was not at all close to 100% of the residential population of these neighborhoods and therefore it is questionable that Vantage has truly obtained close to 100% or even 30% of these neighborhoods' residents' signatures on statements of support.

Further, Vantage Energy has approached a few of Wedgwood Square's high-impact property owners with poorly worded and non-protective waiver agreements that were not negotiated with or even reviewed by Wedgwood Square Officers. The Vantage Representatives who approached our homeowners with these waivers made false statements that the company had worked with the neighborhood to produce the document and that the neighborhood was supportive of the document and further made questionable claims that the City of Fort Worth would override the community's wishes even if these residents chose not to sign these waivers.

Wedgwood Square is disappointed in Vantage Energy's actions and will work hard, as it always has, to protect this community and its residents.

Please contact Wedgwood Square with your comments or questions.

Thank you Wedgwood Square!

Vantage Energy Drill Site Waivers -What you should know!

There have been some developments regarding the Vantage Energy drill site and waiver activities since our last communication to you and there is important information that you should know.

First you should know that Wedgwood Square has NOT completed negotiations on high-impact agreements for the Vantage Lessors and that any piece of paper, form, or proposal that your are approached by Vantage Energy with has not been vetted by Wedgwood Square Neighborhood Association and Empowerment Zone. Further if you are approached by Vantage Energy with a lease agreement, it has been explained that the agreement is NOT the SFWA lease agreement and Vantage Energy offers this without SFWA or Wedgwood Square NA endorsement; if you choose to sign this agreement, you must
understand that it has not been vetted by Wedgwood Square NEZ or SFWA.

At the beginning of the year when Vantage informed Wedgwood Square that the company had a drill site location under contract at Trail Lake Drive ("Harbor Freight Tools" shopping center), the company made repeated statements that the District 6 City Councilman, Mr. Jungus Jordan had already informed the company that the location was fine with him and with the City's plans. This statement was made to Wedgwood Square President Tolli Thomas at least three times in person and several times over the phone, during conversations with Vantage Energy's CEO Mr. Roger Biemans and Representative Mr. Barry Osborne.

When Wedgwood Square President Tolli Thomas inquired with Jungus Jordan
about these statements, Mr. Jordan stated that this was not the case and that he had instructed the company that they would need 100% of the waivers and neighborhood support in order to get a permit for this Trail
Lake Drive location. Tolli Thomas asked Mr. Jordan to attend the coming High-Impact Residents meeting to provide that information to the Wedgwood Square High-Impact Residents first hand, which he did.

Vantage Energy has, as a result of the discussions related to the Trail Lake Drive drill site location, been in discussion with Chesapeake Energy to obtain their property at S-820 for the use of a drill site instead. Vantage, though the company did not have the site purchased at the time, applied for a permit for the S-820 site on March 1st and also began meeting with other neighborhood groups, where there were no High-Impact
properties or where there were very few high-impact properties to make a presentation to the residents about the drilling, the permitting, and to obtain written and signed statements of support of the S-820 drill site.

Vantage Energy also began approaching residents outside of Wedgwood Square
but within 1,000 feet of their possible S-820 drill site with offers for waivers. Some of these residents contacted Wedgwood Square President Tolli Thomas because they were concerned that the compensation offered for the waivers was low. It was reported that Vantage Energy's Representatives were offering only $500.00 for these City Drafted Waivers despite the original Vantage Lease agreement obligations that require a minimum of $1,000.00 compensation for the waivers. When contacted on the issue,
Vantage Energy stated that there was some unintentional error or confusion on this point but that any errors would be corrected and that the Representatives had been instructed to offer $1,000.00 to everyone no matter their lease status or affiliation. Vantage Energy also stated during this time that the company would prefer that any additional drill site specifications and protections be incorporated into the permit with the City rather than included in separate written agreements with the Vantage Lessor and further that Vantage Energy had altered it position on the interpretation of the lease agreement's requirements for separate written agreements for stated setbacks in the original lease form.

Today, Wedgwood Square learned that Vantage Energy Representatives are approaching Wedgwood Square high-impact residents with an offer of $1,000.00 compensation for the residents to sign the City Drafted Waiver, which requires no additional environmental or quality of life protections.
Further, the company is reported by Wedgwood Square property owners to be
very insistent and to be stating the following:

(paraphrased by witness) "Tom Agase just left ... trying to get me to sign. He used every effort to encourage me to sign... He says he believes this was all changed and you are on board and even if He is wrong FW is over riding Wedgwood. Short of threats he was very adamant and I almost caved but I told him I stand with the group and want you to consider our offers before I can be bought with [1000.00] bucks. We are still holding our ground correct? HE said I was one of a few who have not signed. I told him he had his facts wrong at the meeting we all stood firm
as a group. He was searching for information."

Wedgwood Square is NOT opposed to the drill site location at S-820 but believes that Vantage Energy should honor its obligations as set forth in the SFWA-Vatnage/Caffey lease agreement and further should work with the
Residents and Neighborhood Association to make this drill site the safest and least impacting as possible. However, Wedgwood Square is very concerned with these tactics that Vantage Energy's Representatives are
stated to be using.

Wedgwood Square has NOT made any agreements with Vantage Energy related to
the waivers. Wedgwood Square has no reason to expect, based on the company's statements that Vantage Energy will submit to negotiating and executing separate written agreements with Vantage Lessors once the company obtains the City's Drafted Waiver for the purpose of permitting, which is all that is required for processing the permit application with the City of Fort Worth.

Wedgwood Square is VERY concerned with statements that "FW is over riding Wedgwood".

Wedgwood Square reported this to the SFWA, has made an inquiry with Vantage Energy and forwarded this concern to Councilperson Mr. Jungus Jordan.

Vantage Energy states that they are speaking with their Representative to understand what statements were made during the Representative's communications with Wedgwood Square Residents.

Councilperson Jungus Jordan states that he has given no indication whatsoever that would lead to perceptions that the City would "override Wedgwood" in relation to the permitting process.

Please contact the Association if you experience something similar or if you have ANY questions or concerns.

Wedgwood Square March 2ND Natural Gas/Drill Site Update:

Hello Wedgwood Square,

**For a complete understanding of the events leading to these drill site hearings please read this update entirely.**

A lot has happened since our neighborhood's potential high-impact Residents last met and since the last email update. Here is the most
recent news regarding Vantage Energy's natural gas drilling plans in our community.

You'll recall that Vantage Energy had a contract on a significant portion of the "Harbor Freight Tools" shopping center at Granbury Road and Wedgmont Circle, where the company wanted to demolish businesses and build a drill site that would eventually include up to 50 wells directly across the street from many of our neighborhood's homes.

This project, as they had planned it, would require 275 high impact waivers from "protected use" residential homes within 600 feet of the drilling pad site (by requirement of the City's Drilling Ordinance) and within 1,000 feet of the property (by requirement of the Southwest Fort Worth Alliance lease agreement).

Vantage Energy had expressed that the company had the recent opportunity to purchase the Chesapeake Energy property located in the "Pancho's" shopping center at S-820 and Granbury Road.

Wedgwood Square President, Tolli Thomas, encouraged the company to make use of that opportunity as the S-820 site would be considerably lower impact to the residents, the community, the traffic, the businesses, the planned future redevelopment of the Trail Lake Drive, the school, and would required well under 100 waivers.

Vantage Energy chose instead to move forward with the Trail Lake Drive location noting that they already had unofficial approval on the "Harbor Freight Tools" site from the City Councilman, a point that Vantage Energy stated as fact on multiple occasions.

Learning this, Wedgwood Square began negotiations with Vantage Energy on the High-Impact Waiver Agreement terms that would hopefully help to offset the impact of this site on our community and its residents (requiring pipeline location plans/integrity and maintenance plans and agreements, emissions mitigating technology, restricting heavy truck traffic from main roads, addressing frac pond and fencing concerns, etc.).

Wedgwood Square also held a two meetings specifically for the Wedgwood Square residents and property owners who would be most impacted, those within 1,000 feet of the drill site.

The high-impact Residents met with Wedgwood Square on January 11th to discuss this development within the area, to compare it to the redevelopment plans that the City of Fort Worth had laid out in 2008, and to report on the progress made in negotiating the High-Impact Waiver Agreement. Wedgwood Square continued waiver negotiations with Vantage Energy after this meeting.

On February 8th, while attending a City Council meeting to address the Mixed Use-1 rezoning of the recently demolished apartment complex in our neighborhood, Wedgwood Square President Tolli Thomas, spoke with the City Councilman about Vantage Energy's activity and statements regarding the Councilman's support of the Trail Lake Drive "Harbor Freight Tools" drill site location. The Councilman renounced that he had given unofficial support to Vantage Energy for their Trail Lake Drive drill site location and stated that he had instructed the company that they would have to have 100% of the required high-impact waivers within 1,000 feet of the drill site, honoring the terms of the Vantage lease agreement and that the company would have to have neighborhood support in order for the "Harbor Freight Tools" site to be approved. Wedgwood Square President Tolli Thomas, asked the Councilman to attend the Wedgwood Square high-impact Residents meeting scheduled the following Thursday, to express his stated position to the community in person, which he did.

On February 10th Wedgwood Square held a second meeting for our high-impact Residents to inform them of progress on the waiver agreement; about 100 Residents attended. The discussion was lively and many Residents pleaded with one another against the Trail Lake Drive location for many varied reasons focusing around property values, quality of life, and air quality.

After more than an hour of such discussion, Wedgwood Square President Tolli Thomas took a vote to determine the direction of the community's future position on the Trail Lake Drive drill site. 5 Residents were "undecided", 0 Residents were in favor of negotiating waivers for and in support of the Trail Lake Drive "Harbor Freight Tools" drill site, and ALL other remaining residents were opposed to waivers for the Trail Lake Drive drill site and in favor of the alternative S-820 "Pancho's" drill
site-stating that they would sign a waiver negotiated by the neighborhood for that location (a number of the residents present would be within 600 feet or 1,000 feet of either site). The Councilperson told the community first-hand that if that was what the community wanted, that was what would
be done.

On February 16th Wedgwood Square President Tolli Thomas attended a meeting with the Councilman and Vantage Energy where the outcome of the February 10th meeting was discussed. Vantage indicated that the company would pursue the purchase of the Chesapeake Energy drill site at S-820.

On February 23rd Wedgwood Square met with Vantage Energy to discuss progress. The company informed that it had not come to an agreement with Chesapeake on the S-820 drill site but was still in negotiations. The company asked for support on the S-820 drill site and also noted that it would prefer to include all of the high-impact waiver agreement points into the City's permitting process rather than include the points in a separate high-impact agreement, but it would still need the residents within 600 feet of the site to sign the City's waiver to meet permitting requirements. Wedgwood Square expressed that this plan, according to the intent of the document, did not meet the company's obligations in the original lease agreement, which had been discussed as interpreted to require a separate written agreement with Vantage Energy Lessors within 1,000 feet of a drill site to circumvent various restrictions or requirements in the lease agreement. Wedgwood Square stated its position that the community would prefer the separate waiver agreements, per the original lease agreement, for the protection of the community. Vantage Energy stated that they would be in touch and noted that they would like to complete this waiver negotiation as soon as possible.

On March 1st Vantage Energy applied for a multi-well permit for an initial 7 wells at the S-820 "Pancho's" drill site location and further requested a hearing before the City Council, which is only necessary if the company has not obtained all of its required waivers. The company still had not purchased this location from the current owner Chesapeake Energy at the time of application, according to a Vantage Energy Representative.

Over the next week, Vantage Energy's CEO Roger Biemans gave power point presentations to two or three surrounding neighborhood associations including Foster Park and Overton South and noted that a meeting was also planned with South Hills Neighborhood Association (all fall within District 3/Wedgwood Square along with all of Wedgwood falls within Council District 6).

The Vantage presentation discussed the drill site location at S-820 and Granbury Road. There was brief discussion regarding the Trail Lake Drive site, which was also noted on the map in the presentation and labeled "alternative drill site". The company stated that everyone who had walked into the meeting had received a piece of paper that included two signature places to allow seismic activity and separately to support the drilling at the S-820/Granbury Road location.

Vantage Energy also noted that there were landmen in the Church who would sign a lease agreement with anyone unleased who wished to lease now. This was not an SFWA or Neighborhood Association negotiated lease agreement.

According to one Vantage Energy Representative, this offered lease was not the Southwest Fort Worth Alliance (SFWA) negotiated lease agreement nor a modified SFWA lease agreement, the royalty clause among other clauses was different than that in the SFWA lease, and the bonus was not the $6K per acre that Vantage had indicated to SFWA that it would be offering unleased residents within the drilling area, but considerably lower.

The questions from residents addressed the expiration of the primary term, royalty revenue, and seismic activity. There were a couple of questions regarding impact to property values in close proximity of the site.

Vantage Energy CEO Roger Biemans, stated that there was no data to support any property devaluation and that any loss would be offset by a royalty stream, which Mr. Biemans estimated to be equal to the signing bonus received "Over the Life of the Well", which we have been told is estimated at 50 to 80 years. At the Foster Park meeting, Mr. Biemans stated that the only property associated with the S-820 drill site which would require a high-impact waiver would be Southcliff Baptist Church. Mr. Biemans did not note that there were homes in other neighborhoods that would be within 600' of the pad site, in Wedgwood Square and South Hills.

A Vantage Energy Representative noted to Wedgwood Square that Vantage anticipates that the company will probably still work to obtain City required waivers from the Wedgwood Square residents within 600 feet, but that there was not current authorization to negotiate high-impact waivers with Wedgwood Square. In other words, Vantage will offer some amount of money ($500-$1,000) and the City waiver to Wedgwood Square's 25-50 homeowners that are within 600' of the pad site, but did not anticipate negotiating the high impact waiver agreement with Wedgwood Square to meet the terms of the lease agreement for those leased to Vantage Energy who are within 1,000 feet of the pad site. According to this Vantage Energy Representative, Vantage Energy is now interpreting the requirements of the original lease agreement differently. This Vantage Energy Representative stated that the company would use the statements of support from other neighborhoods to offset any failure to obtain waivers from high-impact property owners.

Wedgwood Square President Tolli Thomas called the City of Fort Worth Gas Department to confirm the terms of the Vantage Energy permit application and spoke with Jaqi Peace who confirmed that Vantage Energy had filed a multi-well permit application on March 1st for 7 wells that ultimately requires 7 permits under one application for the S-820/Granbury Road location. No additional permit applications were filed by Vantage for any other location. Another City Representative, Estelle, who was processing the application, informed that Vantage has, in their application, requested a hearing in lieu of providing waivers for protected uses within 600 feet of the pad site and further stated that this was not standard procedure as most companies are fairly diligent about obtaining waivers and only request hearings if the cannot do so.

The Residents who would likely fall within 600 feet or 1,000 feet of the S-820 drill site should receive a notice from the City within days and are likely located along Wonder Drive, Wonder Court, Wooten Drive and Trail Lake Drive.

Vantage Energy contacted Wedgwood Square on March 2nd noting that the company may indeed move forward with negotiating waivers for the community if authorized, but there has been no contact on this point since.

Please send Wedgwood Square your questions and comments.

IMPORTANT DATES:

March 31st 3:00PM
Gas Drilling Review Committee Hearing
1000 Throckmorton Street
Hearing for Vantage Energy's High Impact Multi-well Dill Site Permit
Questions/Comments City of Fort Worth Gas Well Section 817-392-2339
http://www.fortworthgov.org/gaswells/default.aspx?id=50580

May 3rd
City Council Meeting/Public Hearing
1000 Throckmorton Street
Hearing for Vantage Energy's High Impact Multi-well Drill Site Permit
(without high-impact waivers from Residents within 600')
Questions/Comments City of Fort Worth District 6 Council Office Telephone
817-392-8806 (Fax: 817-392-6187) E-mail: District6@fortworthgov.org
http://www.fortworthgov.org/government/district6/

February 10, 2011 WSNEZ High Impact Residents Meeting Outcome

On February 10, 2011 Wedgwood Square Neighborhood Empowerment Zone held a meeting for the WSNEZ Residents and Property Owners who would be most impacted by the potential high-impact drill site that Vantage Energy recently announced to have put under contract; located in the shopping
center at Trail Lake Drive and Wedgmont Circle (where Harbor Freight Tools is located now). The residents affected by the potential high-impact radius and slightly beyond, were notified of the meeting in advance by flyer and email. This was the second such meeting, the first was held on January 11, 2011.

There was very strong attendance, including "absentee owners" of multiple neighborhood properties. Fort Worth City Councilperson Jungus Jordan also attended at WSNEZ's request.

WSNEZ reviewed the restrictions and requirements in the already in-place lease agreement, explained that the high-impact waiver as a secondary tool to better address loose ends in the lease agreement (such as fencing) and to also address items not covered by the lease agreement (such as emissions mitigation), and then reviewed the current draft of the high-impact waiver and explained each of the terms. WSNEZ took questions and Councilperson Jordan also spoke and answered a number of questions regarding his role in the process and the City's Gas Drilling Ordinance.

During the heated discussion, Residents made passionate pleas to one another regarding air quality and safety, property values, already planned commercial redevelopment for the community, and concern with company reliability to deliver on promises made, due to the actions and decisions the company chose in October of 2008.

WSNEZ's role was to remain neutral, provide accurate information, and to negotiate the best waiver possible for everyone, but it was the residents' role to determine together the neighborhood's position on the issue and to decide to sign the negotiated waiver or not.

After more than an hour of discussion, a vote was taken. The overwhelming majority voted against signing high-impact waivers to allow drilling at the Harbor Freight Tools shopping center, preferring the company to seek a drill site at the Pancho's shopping center, which was the site originally discussed in 2008.

Councilperson Jordan, after witnessing the discussion and hearing the vote, informed Residents that he would not support a drill site location without neighborhood support and without all of the required high-impact waivers.

The audience stated that they, who would need to, would consider waivers for a Pancho's shopping center location and indicated that WSNEZ could continue to negotiate or finalize waiver agreements, starting with the current draft, for the Pancho's shopping center location. Attendees were not against drilling and in general wanted to see the lease agreement held by mineral development, but simply did not care for the site chosen, which most felt would to be an affront to property values and quality of life. The residents felt that Vantage could and should make arrangements to drill at the Pancho's shopping center location.

If you are a WSNEZ Property Owner and have not attended a meeting regarding this matter or have not voiced your position on this matter, you may email WSNEZ with your name, address, phone number, email, and position/comments/questions. Residents within the high-impact radius are given the most weight by the City's Ordinance and similarly will be given special consideration by WSNEZ.

Thank you Wedgwood Square for your continued care for our Community!

February 3, 2011 Southwest Fort Worth Alliance Update

In August of 2008, nearing the end of almost a year of organizing among SFWA's Member Neighborhoods and of negotiations with the Barnett Shale's major natural gas developers, The Southwest Fort Worth Alliance was approached by Vantage Energy, who made an offer to SFWA which SFWA accepted. The agreement and financial terms between SFWA and Vantage Energy were jointly announced, the contractual language was negotiated and finalized, and informational meetings and signing events were jointly organized and announced.

SFWA and its Mineral Owners were promised that all SFWA Member Neighborhoods' Minerals Owners would be given the opportunity to finalize this SFWA/Vantage Energy-Caffey Group deal, over months of singing events that were projected to continue through at least January of 2009. Further, Vantage Energy promised that no one would be left out. SFWA's acceptance of Vantage Energy's offer was contingent on all SFWA Member Neighborhoods' Mineral Owners being included in the deal. The Lease Agreement terms included a signing bonus of $27,500.00 per acre and a 23% true no cost royalty, in addition to strict property rights and environmental protections. Also included in the accepted offer from Vantage Energy was $500,000.00 in Community Improvement Funds.

On October 14, 2008, after only a few weeks of signing events for only nine of SFWA's more than twenty Member Neighborhoods' Mineral Owners, Vantage Energy informed SFWA that it was suspending leasing immediately and that no Community Funds would be provided as agreed to.

Since the leasing cessation occurred, Vantage Energy has approached SFWA three separate times with essentially the same proposal, for SFWA to endorse a new offer from Vantage Energy with a signing bonus of $6,000.00 per acre and a modified lease agreement. The alterations to the lease agreement have changed over the last two years and over the last three proposals from lowering the shut-in royalty to including permanent easement rights and allowing seismic testing. Also, Vantage Energy's proposals have excluded a number of SFWA's Member Neighborhoods from any benefit and any benefit was focused on the neighborhoods in which Vantage Energy already holds significant leases as a result of the events of 2008.

Most recently, Vantage Energy approached SFWA with such a proposal in January of 2011. Once again, Vantage Energy's proposal did not consider the arrangement between and collective goals of all of SFWA's Member Neighborhoods and Mineral Owners. The SFWA Member Neighborhoods' official representatives determined that each individual neighborhood would need to discuss the Vantage Energy proposal and determine an official position and that these individual neighborhood positions, collectively, would determine the SFWA response to Vantage Energy by a majority vote.

By an overwhelming majority vote, the SFWA Member Neighborhoods determined that SFWA could not support Vantage Energy's January 2011 proposal nor lend endorsement to the terms and other conditions posed by Vantage Energy. SFWA's discussions focused on the broken trust between SFWA and Vantage Energy, as Vantage Energy had failed to honor its 2008 agreement with SFWA and failed to honor its public promises to the Mineral Owners of SFWA.

SFWA has remained optimistic that Vantage Energy would eventually return to SFWA, desiring to do the right thing and complete the agreement as originally negotiated and promised. Unfortunately, Vantage Energy has not done so which is a true disappointment. The Southwest Fort Worth Alliance has retained an attorney, Mr. John Howie, to represent the SFWA's interests regarding Vantage Energy's 2008 breach of trust.

As a result of Vantage Energy's decisions and actions in 2008, SFWA must now and will continue to consider the splintered needs of varied groups of residents who are leased; who are leased and located near to potential high-impact drill sites; who are unleased; or who are unleased and now party to the mass litigation that followed Vantage Energy's 2008 breach of trust. All of these people who make up the SFWA are the SFWA; neighbors, friends, and family. All of these people, regardless of their current leasing situation, are our care.

As always, the Southwest Fort Worth Alliance will continue to provide its Mineral Owners with information and new developments, as this ongoing natural gas matter continues.

January 14, 2011 Southwest Fort Worth Alliance Gas Lease Update

There is a bit of a buzz going around in the Southwest Fort Worth Alliance neighborhoods that Vantage Energy now has a drill site. The rumors are true. Vantage Energy recently informed SFWA that the company has a drill site under contract in the Wedgwood Square NEZ community.

The site Vantage now has under contract consists of half of the Wedgwood shopping center along Trail Lake Drive and Wedgmont Circle. The businesses in that portion of the shopping center have already been informed and it is SFWA's understanding that the previous property owner will make arrangements to move the businesses to the opposite side of the complex where the Fort Worth PD station is now.

Vantage Energy provided the three below sketches to Wedgwood Square Neighborhood Empowerment Zone (WSNEZ), to initially demonstrate what the site might look like. These sketches are not absolute or final and discussions are ongoing between WSNEZ and Vantage Energy regarding the drill site specifications.

FOR IMAGES FOLLOW THESE LINKS:
http://www.sfwalliance.org/images/HIDS_1.jpg
http://www.sfwalliance.org/images/HIDS_2.jpg
http://www.sfwalliance.org/images/HIDS_3.jpg

The Wedgwood Square NEZ community has already informed the potential high-impact residents surrounding this location of Vantage's plan and has held a meeting with these high-impact residents to take questions and concerns and to inform the residents of what the company and the neighborhood are discussing in terms of high-impact waiver conditions.

High-impact waivers are intended to be required by the city's drilling ordinance, in order that the city issue a high-impact permit. The Wedgwood Square NEZ community is in discussions with Vantage regarding how the company will address high-impact issues, such as pipelines, emissions, compression, lighting, noise, fencing, truck traffic, frac pond design, drilling schedules, landscaping, and more. This site will be literally across the street from a number of properties and it is very important to the residents affected and to the neighborhood association and community that this drill site be something that everyone in the area can live with for as long as the site is viable.

Your neighborhoods' SFWA representatives have already begun meeting to discuss this development.

It is likely, based upon the SFWA-Vantage-Caffey lease agreement, that Vantage Energy will try to apply for city permits by mid-March, provided Vantage has obtained the necessary high-impact waivers. If Vantage obtains permitting from the city and Texas Railroad Commission without any obstacles, the company could foreseeable be drilling this summer. If the company opts to immediately frac its wells, it is foreseeable that
residents included in the company's first units and pools could see a royalty in a matter of months from the time drilling begins. It is unknown at this time what the royalties might equate, but keep in mind that SFWA residents who were able to sign the SFWA-Vantage-Caffey lease will never pay company costs from their share of the royalties. A royalty calculator, attached, has been provided by Vantage Energy as a rough estimator for residents seeking such information; the results of this calculation should not be considered a promise nor heavily relied upon since this is an estimation only and does not take into account the production of wells, which will be unknown until the first exploratory well has been drilled.

For more information from or about the Southwest Fort Worth Alliance, including the PDF of the SFWA-Vantage-Caffey lease agreement, maps and power-point presentations regarding Fort Worth leasing and the SFWA lease, you may visit the Southwest Fort Worth Alliance online at http://www.sfwalliance.org/

For more information regarding the City of Fort Worth's Drilling Ordinance, you may read the ordinance online at http://www.fortworthgov.org/citysecretary/info/default.aspx?id=56294

For more information regarding the regulations of the Texas Railroad Commission you may visit online at http://www.rrc.state.tx.us/

SFWA residents who were not permitted to sign the SFWA-Vantage-Caffey lease agreement prior to October 14, 2008 and who are party to the North Texas Lease Litigation should contact their legal representation to find out how this new development might affect them. http://www.ntxleaselitigation.com/

SFWA residents who are unleased and not party to the North Texas Lease Litigation are encouraged to contact their neighborhood association contacts or the Southwest Fort Worth Alliance through the SFWA website http://www.sfwalliance.org/

SFWA residents leased by Vantage-Caffey in 2008, who have not already received a copy of their lease agreement from Caffey Group are encouraged to request a full copy of their own signed lease agreement, by contacting Caffey Group in writing by registered or certified mail at 309 W 7th Street #1300 Fort Worth, TX 76102-5113. SFWA residents seeking additional information about Vantage Energy or Caffey Group may like to visit their online websites at http://www.vantageenergy.com/ and http://www.caffeygroup.com/

The below is a letter from the Southwest Fort Worth Alliance to Fort Worth City Mayor and Council, regarding the August 24th Council agenda item relative to amend the Fort Worth City Gas Drilling Ordinance, inserting a definition, previously not publicly disclosed and discussed to great extent,

August 23, 2010

Fort Worth City Mayor and City Council:

RE: M&C G-17021 [Adopt the Ordinance Amending Article III of Chapter 15 of the City Code, to Provide a Definition for Grandfathered Site]

The Southwest Fort Worth Alliance (SFWA) is an alliance of more than twenty Neighborhood Associations, Homeowners Associations and groups of organized property owners, who came together in May of 2008, on behalf of concerned mineral owners and property owners living in Southwest Fort Worth, for the purpose of addressing natural gas leasing, drilling and exploration, the effects of such on mineral rights, property rights, the environment and residents' health, quality of life concerns, and all facets associated with the mineral development industry.

The Southwest Fort Worth Alliance encompasses more than twenty-five thousand individual properties and includes an estimated eight thousand acres in Fort Worth Council Districts 3 and 6.

As M&C G-17021 directly relates to the natural gas exploration industry and as the design and purpose of the Southwest Fort Worth Alliance is to address such, it is appropriate for the Southwest Fort Worth Alliance to comment on M&C G-17021.

Little public explanation or discussion has taken place with reference to this proposed amendment to the City of Fort Worth's policy related to the provision of a definition for Grandfathered Sites.

This amendment will have significant and long reaching effects for the Citizens of Fort Worth, who are living with and among urban natural gas development.

It is imprudent to hear, review, consider or take action on such a substantial amendment during a morning City Council meeting, knowing and understanding that doing so directly impedes working citizens from attending such meeting to address Council with their positions, concerns, comments and/or questions.

The Southwest Fort Worth Alliance, in an effort to facilitate proper public process, by way of a considerate and inclusive public hearing, requests that this action item, M&C G-17021, be continued to an evening City Council Hearing.

Regards,
Tolli Thomas, Spokesperson
The Southwest Fort Worth Alliance

SEPTEMBER 15TH DEADLINE
For anyone wishing to pursue the litigation initiated by The North Texas Lease Litigation attorneys.

http://www.ntxleaselitigation.com/

If you did not get the opportunity to sign the SFWA negotiation and Vantage Energy agreed Caffey Group lease before or on October 14, 2008, NTXLL is working to enforce your right to that lease agreement.

**NOTE: NTXLL WILL NOT TAKE ANY ADDITIONAL CASES AFTER SEPTEMBER 15TH 2010.**

Further, NTXLL has set a firm, final cut off date for accepting additional cases and will not be taking additional cases after September 15, 2010. This is because the statute of limitations for filing against these companies on the most significant allegations expires on October 14, 2010 and so all cases, alleging these most significant claims, must be filed on or by this date; the attorneys need some time to prepare the files and petitions in advance of filing and so have determined that September 15,2010 is the latest date by which they can receive to review and handle potential clients' paperwork. Mineral owners who are already clients should attend to receive an update about the cases.

Contact Carolyn with Petroff and Associates
3838 Oak Lawn Avenue, Suite 1124
Dallas, Texas 75219
(214)-526-5300

August 12TH (6:00 to 9:00 PM) and
August 14th (9:00 AM to Noon) REPEAT SESSION

Southwest Fort Worth Alliance (SFWA) hosts North Texas Lease Litigation (NTXLL)

If you did not get the opportunity to sign the SFWA negotiation and Vantage Energy agreed Caffey Group lease before or on October 14, 2008, NTXLL is working to enforce your right to that lease agreement.

Here are the details:

WHAT: LAST CHANCE: KNOW YOUR RIGHTS - OIL AND GAS SEMINARS THURSDAY

WHEN:AUGUST 12TH 6:00 p.m. to 9:00 p.m.
& AUGUST 14TH 9:00 a.m. to Noon

WHERE: Southcliff Baptist Church Baptist Church: 4100 Southwest Loop 820

**NOTE: NTXLL WILL NOT TAKE ANY ADDITIONAL CASES AFTER SEPTEMBER 15TH 2010.**

SFWA residents and mineral owners will have the opportunity to ask any oil and gas related questions as oil and gas attorney Chris Payne will be available to answer them. SFWA residents will also be able to ask any related questions regarding the mass action litigation that these attorneys, Kip Petroff and Chris Payne etc. are pursuing against Vantage Energy, Caffey Group and their investment companies. The attorneys will be showing video clips from the recent depositions taken for Roger Biemans, CEO of Vantage Energy; John Wehrle, VP of Vantage Energy & Mark Caffey, President of Caffey Group. Any SFWA mineral owner, who owned their home and their minerals within SFWA's boundaries and who DID NOT get to sign an SFWA negotiated Vantage Energy/Caffey Group lease before or on October 14, 2008 and who is remotely interested in the details of this mass action litigation, should attend one of these two meetings to determine if they would like to participate in the litigation; EVEN IF the SFWA mineral owner did sign a mineral lease agreement after October 14, 2008 that WAS NOT the lease agreement that SFWA negotiated with Vantage Energy/Caffey Group for a $27.5K per/acre bonus and a 23% true, no-cost royalty.

Further, NTXLL has set a firm, final cut off date for accepting additional cases and will not be taking additional cases after September 15, 2010. This is because the statute of limitations for filing against these companies on the most significant allegations expires on October 14, 2010 and so all cases, alleging these most significant claims, must be filed on or by this date; the attorneys need some time to prepare the files and petitions in advance of filing and so have determined that September 15,2010 is the latest date by which they can receive to review and handle potential clients' paperwork. Mineral owners who are already clients should attend to receive an update about the cases.

The Southwest Fort Worth Alliance Background and Update on Kingswood Park

SFWA provided information regarding this matter as it became available. Fort Worth City and SFWA have received a number of emails concerning this matter and so SFWA feels that to make matters clear, it is best to provide a time line of events for residents so that they may understand what has taken place.

In May of 2008, a number of SW Fort Worth Neighborhood Associations, Homeowners Associations, Neighborhood Coalitions, Neighborhood Alliances, and Residents came together to create the Southwest Fort Worth Alliance. The goal of the newly formed alliance would be to educate and assist as many persons in the SW Fort Worth area as possible to obtain a mutually beneficial lease agreement for their minerals.

One such SFWA Member Alliance is The Hulen West Alliance, headed by Mr. Chad Pierce, composed of nine neighborhoods, encompassing NAs and HOAs and citizens organized without an NA or HOA and/or separate from their NA or HOA. The Hulen West Alliance included (in alphabetical order) Candleridge West, Meadows of CandleRidge, Ridgeview Estates, Stone Meadow, Summer
Creek Meadows, Summer Creek Ranch, Summer Creek South, Trail Lake Estates, and Villages of Sunset Pointe.

In the spring of 2008, Hulen West Alliance Representatives attended a Candleridge West Homeowner's Association meeting, due to many inquiries for assistance from Candleridge West residents, to offer the HOA join Hulen West Alliance. The HOA President decided that the HOA would not officially join the Hulen West Alliance but that the HOA would guide its residents seeking information about natural gas related issues to the Hulen West Alliance. Candleridge West HOA President Mr. Dale Dickerson felt that each mineral owner should make mineral leasing decisions individually and did not wish for the HOA to be involved in gas lease negotiations. Therefore, residents of Candelridge West neighborhood joined the Hulen West Alliance and the Candleridge West Homeowner Association referred persons to the Hulen West Alliance from that time forward. When the Hulen West Alliance joined together with the other neighboring neighborhood groups to form the Southwest Fort Worth Alliance, residents of Candleridge West neighborhood became apart of the SFWA and were notified of this and cooperated with each other and all SFWA neighborhoods' residents to negotiate a lease agreement. The Hulen West Alliance's Representative Mr. Chad Pierce remained in communications with Candleridge West HOA's Board's Vice President Mr. Rajiv Mehta throughout the SFWA negotiations process.

Kingswood Park, has long been championed by Candleridge West Homeowner Association President Mr. Dale Dickerson, who has diligently worked for this Park to be designated as a City Park and opened to all neighborhood residents. Mr. Dickerson has worked hard to find funding for the development of this park over the years.

From May of 2008 forward, Fort Worth District 6 City Councilperson Mr. Jungus Jordan stated publicly to citizens at multiple meetings, that he would not lease publicly owned, Fort Worth City Parkland within District 6 and the boundaries of the Southwest Fort Worth Alliance prior to SFWA's citizens private properties being successfully leased.

On November 17 of 2009, without direct contact and prior notice beyond that of the 72 hour posting of the Council Agenda online, several of SFWA's parks appeared on the Council agenda for subsurface rezoning,
including Kingswood Park.

Several SFWA Representatives, including those whose parks were listed for subsurface rezoning, attended Council to ask that these parks not be rezoned. SFWA's concern was and is that leasing the minerals of these parks would increase the voluntary pool size for the gas companies, leading to applications to the Texas Railroad Commission to force pool unleased residents surrounding the parks.

SFWA Spokesperson Mrs. Tolli Thomas addressed City Council and stated SFWA's concerns for the unleased SFWA member residents that might be effected negatively by this decision. Two parks were removed from the agenda, as their neighborhood leaders directly contacted Fort Worth City Councilperson Mr. Jungus Jordan with their concerns and to remind him of his earlier commitment to the residents that relative parks would not be leased ahead of the surrounding residents.

At this meeting, it was noted by Parks Department Staff that Candleridge West Homeowner's Association was supporting the subsurface rezoning of Kingswood Park contingent on the bonus funds received through eventual leasing remaining with and for the purpose of developing the Kingswood Park. Mr. Dickerson's desire was only to receive otherwise unavailable funding for Kingswood Park's development and Mr. Dickerson was representing the HOA's view of the matter. The Southwest Fort Worth Alliance at NO point, indicated that SFWA was representing the Candleridge West HOA but rather and only the unleased surrounding residents and mineral owners who might be negatively impacted by the future leasing of this park.

As this was not then specifically related to Chesapeake Energy, Councilperson Jordan voted in favor of rezoning the subsurface of
Candleridge Park but noted that this was not an intent to lease but only to prepare for possible future leasing and further included in the record his desire that staff continue to coordinate with neighborhood leaders moving forward with these public parks.

Following this Council meeting, SFWA Representatives were addressed by Jean Petr, Fort Worth City's Gas Lease Program Manager, who provided contact information for herself and another department representative. Ms. Petr noted the following: The District 6 Parks were placed on the agenda for subsurface rezoning by Councilperson Jordan. Councilperson Jordan had asked Ms. Petr to speak with us regarding future cooperation and communication related to the public lands within District 6 and SFWA boundaries.

To view the events from November 17th you may visit this site to watch the Council meeting; the parks on the agenda appear about 25 minutes into the meeting and you may move the video to this time.

http://fortworthgov.granicus.com/MediaPlayer.php?view_id=2&clip_id=708

On April 19 of 2010, SFWA forwarded concern regarding the lease of Kingswood Park and the possible, negative, future effect it may have on surrounding unleased residents to Councilperson Mr. Jordan. SFWA also disseminated information related to this park's rezoning and pending leasing for residents' information and many residents responded and
contacted Council with concerns and objections. SFWA received NO response from District 6 Councilperson Mr. Jungus Jordan to this inquiry and objection.

On April 20 of 2010, without direct contact and prior notice beyond that of the 72 hour posting of the Council Agenda online, Kingswood Park appeared again on the Council agenda for Council to approve a lease bonus of $3500.00 per acre for 8.385 acres with Chesapeake Energy. The remaining 50% interest of the park, which is a total of 16.77 acres, is owned by another private entity. Kingswood Park abuts multiple residences of whom mineral owners are unleased. During Pre-Council, Councilperson Mr. Jordan noted that lease of the park was supported by Candleridge West Homeowner Association's President.

Southwest Fort Worth Alliance Spokesperson, Mrs. Tolli Thomas, accompanied by another SFWA Representative, addressed Council on the matter. Again, Ms. Thomas addressed concerns on behalf of unleased residents surrounding Kingswood Park, reminded Council of the May 2008 and November 2009 commitments from Council not to lease public lands in SFWA boundaries prior to private citizens securing leases for their own minerals, and noted that in the area surrounding Kingswood Park, a vary large tract of land, multiple neighborhoods containing many unleased residents would be effected by this decision, not just the Candleridge West Homeowner Association. Mrs. Thomas at NO point indicated that SFWA was representing Candleridge West Homeowners Association and only discussed the unleased mineral owners who are residents surrounding Kingswood Park. Mrs. Thomas also asked from which site the park would be drilled and in which pool the park would be included, but received no answer.

As the lease agreement was in connection with Chesapeake Energy and as Councilperson Mr. Jordan is unable to vote on Chesapeake Energy related issues, due to the household income he receives from this company, Mr. Jordan abstained from voting, stating that he would file proper affidavit for doing so. The Kingswood Park was leased to Chesapeake Energy with a vote of 8 to 0 with 1 abstention.

To view the events from April 20th you may visit this site to watch the Council meeting; Kingswood Park appears approximately 44 minutes and 50 seconds into the meeting and you may move the video to this time.

http://fortworthgov.granicus.com/MediaPlayer.php?view_id=2&clip_id=842

The Southwest Fort Worth Alliance will continue to advocate for our unleased mineral owners and residents in whatever forum or means as is required. Thank you for your continued support!