Tyler County Forest Landowner Association Regular Meeting Minutes Saturday, September 11, :30am

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Tyler County Forest Landowner Association Regular Meeting Minutes Saturday, September 11, 2010-9:30am In Attendance: Forty-one members and visitors -- including Charles Zimmerman (President), Jack Clark (Vice President), Bill Tetley (Treasurer), Betty Zimmerman (Secretary), and Directors Tim Parker, Hugh Hales, Rick Huffman, and Sarah Reinemeyer. The meeting was held at the Tyler County Extension Office, 201 Willow Street, Woodville, Texas. Charles Zimmerman welcomed the attendees, recognized the officers present and introduced the speakers. Bill Russell, Senior Geologist, Camterra Resources, Inc. and forest landowner in Panola County, Texas, discussed surface and mineral rights from a landowner s perspective. Texas law gives dominance to the mineral estate over the surface estate. While some surface landowners retain ownership of the mineral estate, in many cases ownership of the surface and mineral estates have been severed. If a landowner owns both the mineral and the surface estates, the landowner is in a position to negotiate surface usage restrictions in association with a mineral lease agreement. Oil and gas companies are not required to pay Texas surface owners for damages, but most reputable companies do. Damages can be for the pad location, road rights-of-way and pipeline rights-of-way. The landowner should push for a settlement that includes the price of the crop, as well as the price of the dirt. For tree farms, Bill suggests that the settlement for the price of the crop be three times the current market price for the timber. A land manager representing the oil company will probably be the first person to contact the landowner. It is advisable for the landowner to develop a very good relationship with the land manager and to continue to maintain a dialog with him or her. Once activity by the oil company begins, the landowner is advised to develop a personal relationship with the pumper. This can be invaluable in addressing the proper locking of gates and/or cleanup of trash.

Even though landowners with only surface estates have limited rights, landowners are encouraged to learn as much as possible about the planned drilling and/or pipeline activities and to communicate any concerns to the land manager. It may be possible to include these concerns in an agreement. Websites with additional information: Texas Land & Mineral Owners Association http://www.tlma.org/ Texas Landowner s Bill of Rights http://www.oag.state.tx.us/agency/landowners_billofrights.pdf Mark Seefeldt, Anadarko Production Engineer in Tyler County, shared charts of the Austin Chalk formation showing that the Brookeland producing field of the formation is almost entirely in the middle third of Tyler County. Tyler County includes zones A and B of the Austin Chalk formation, which is a naturally fractured reservoir. Horizontal drilling technology, which emerged in the 1980 s, is deployed in Tyler County to maximize intersection of Austin Chalk fractures. Most of Anadarko s horizontal wells in Tyler County are drilled from north to south, with a gentle bend in the well when it turns from vertical to horizontal. The horizontal sections of a well in Tyler County average 5500 feet. If the well has horizontal sections drilled in opposite directions, it will give the well a total horizontal length of about two miles. Anadarko currently has about 50 wells in Tyler County with 3 or 4 new ones being added each year. The wells usually produce both oil and gas. While the volumes vary, initial production from a Tyler County well is usually very strong. However, these volumes decline sometimes quickly once production begins. The life expectancy for a well in Tyler County is about 20 years.

Jim & Meghan Hardy, former contract land managers for Anadarko in Tyler County, shared their experiences. Jim is currently a Hancock Forest Manager while Meghan is currently a land manager and attorney in Tyler County. If an oil or pipeline company states that they want to construct a pipeline across a landowner s property, the landowner should ensure that the agreement specifies the number of pipelines, their size, and what product will be transported through the pipelines. The landowner should also ensure that the agreement specifies access via specific roads and/or easements, rather than accepting the usual, broad general statement for access. While companies can use eminent domain to acquire pipeline easements, they usually prefer to negotiate with the landowner. If the matter goes to court, both parties usually loose. The oil/pipeline company loses because it is required to pay for additional permits and long-term taxes, while the landowner loses because he/she will almost assuredly receive less money. Jim and Meghan emphasized the importance of addressing what happens once well production or pipeline use has terminated. It is also important to pre-define what defines use termination. For example, when product stops flowing through a pipeline, the landowner would want to specify that the easement for the pipeline terminates. Charles Zimmerman called the business meeting to order. The minutes from the March meeting were distributed and were approved as published. Bill Tetley presented the treasurer s report which lists 123 paid members for 2010. This includes 8 new members and 3 reinstated members. There is a balance of $5,668.29 in the treasury. Sarah Reinemeyer, webmaster, reported that the board had approved continuing the TCFLOA website http://tcforest.org/ beyond the initial two year trial period. (Her complete report is attached.) Charles Zimmerman announced the Nominating Committee s slate of candidates for 2011-2010 and ballots were distributed to members for voting. The results were: Betty Zimmerman,

President; DeAnna Turner, Vice President; Jeff Parker, Secretary; Treasurer, Bill Tetley; and Directors Jack Clark, Sarah Reinemeyer, and Hugh Hales. The date for the next TCFLOA general meeting will be announced after the January Board Meeting. There was no new business. Charles Zimmerman adjourned the meeting. Jack Clark blessed the meal. Attendees enjoyed the bar-b-q lunch and extended personal networking. Web site renewal: * * * Tyler County Forest Landowner Web Report 9/11/2010 by Sarah Reinemeyer TCFOREST.ORG will be up for renewal before the end of the year. TCFLOA took out a two-year contract originally which expires this fall. The TCFLOA board has elected to continue with the website. Web Site Usage Information. Activity Our most active month this year was May. However, April was the month with the most unique visitors (Unique meaning that different people accessed the site.) Frequently Accessed Pages Home page, Events page, contacts, tips, and a number of the meeting minutes have been downloaded numerous times. Also several accesses for Library, Links, Join Us, and About Us pages. Countries Access - Mostly USA. Germany and Russia for the summer. In this short span of September, USA. Romania and South Africa are the high hitters. Users Most access of our website came directly to it rather than from other sites. This is the case when our website address is directly typed in a browser or someone has it in their favorites and links from their own browser. These would most likely be current members assessing the site. Again we show access from our link on the Texas Forestry website. Goal: Have a link to our website put on other websites. Search Key Phrases Seeing searches for Tyler County forest land owners, Louisiana s1 clover, bearhog, tfa feral hog control, organization established, black bear, hap hatchel, parker forestry Woodville tx, planting oats jasper tx, meadwestvaco evadale forestry, Lonnie grissom, Zachary cain texas, pipeline construction tyler county tx, tex blackshear, tyler county hunting leases, arsenal yaupon, texas pine saw log prices, Mapco and tyler county. (Spelling as it appeared in the web logs.) Goal: add information about items and place in search tags (meta tags). Search Engines Google used most often and then Bing, Yandex, AOL. References There is evidence that links were made to our website from http://www.texasforestry.org/programs/area-chapters/ Usage This stays pretty constant each month. Also the hours of the day that are most active are 9 am until noon and then 4 though 5 am through the summer. September shows an increase in the 7 pm to 10 pm range with a distinct drop off in access from 11 am to 1 pm. So viewing patterns changed in September. Tuesday and Friday are the most active days.

Web Statistics: 2010 Monthly Summary Goal for the year: Add a site map to the website. I have learned that some of the search engines have change tactics and now search for a sitemap page to create their search word lists.