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Permalink Reply by Bobi Carr ("parker") on July 25, 2008 at 16:27

The farmer who runs cattle on my property told me that the gas people kept letting his cows get out. He sent them a couple of bills for catching them. (Which they paid.) After this happened a few times, they started closing the gate.
I addressed this problem in my original lease. I will probably also address it in the r/w agreement.
I THINK THE MOST IMPORTANT THING IS TO THINK TO THE FUTURE. What can happen and try to address those matters.
GOOD LUCK.

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Permalink Reply by Columbia1 on July 26, 2008 at 1:44

JR, I totally agree with all your statements. I would add that 20+ years might be too conservative. I am fighting easements issues that my Grandfather signed almost 70 years ago. Be sure to think long term because what you sign today may affect your grand- and great grandkids. Some of those old easements were very general, ie in SW/4 of NW/4 or something similar. That was so open ended that production pipelines can and did go everywhere. Back in the 1940's my Grandfather never did envision this, and he needed the money they offered him. Can't fault him but sure have learned from him! Make sure lease says companies have to specify where the lines will be and provide surveys of each and every line.

We typically produce about $4,000 to 5,000 per acre from pine trees over a 22 to 24 year rotation so that should be taken into account when any yearly use rental rates are considered for pipelines or rent "damages" paid for a location. Make sure there is a statement in lease that surface owner can use surface for all his surface uses. Some companies do not want logging equipment (or other heavy equipment) in their right-of-way so that could limit how easy it is to harvest trees or do other work. Make oil company bury lines below bare mininum required so these issues don't limit use of land in future.

Or even better as JR said, make them go around. We gave up several thousand dollars a few years ago when we refused to have a salt water line run the entire length of our property. I did not want my kids to have the hassle 20, 30, 40 years from now and after I am long gone.

Seventy years of experience dealing with oil companies over four generations has taught me, and now my kids, a lot. Hope this helps others gain some "experience" without having to do it the hard way.

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Permalink Reply by herefordsnshale on July 26, 2008 at 8:15

Lots of great information in this thread! There are still a few of those old leases around that Columbia mentioned above. Comstock has been one of the worst in our area, a lot of their old leases said, in effect, that they didn't have to do ANYTHING, no surface damages whatsoever and they are sticking to them and have refused to compensate several landowners in the area. I think most companies will try to do right but you can't take it for granted that they always will. GET IT IN WRITING!

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Permalink Reply by Tim Boyet R3 on July 26, 2008 at 17:13

Thanks for all the info!!! Keep it coming

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Permalink Reply by Tim Boyet R3 on July 28, 2008 at 15:07

Just bringing this back to the top for some more info

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Permalink Reply by sesport on July 29, 2008 at 6:18

Thank you for all that info. I don't own much, but live in a nice neighborhood right at city limits. There's a nice pasture for horses across the hwy (come to think of it there also used to be cattle but they've disappeared) and a beautiful old pecan orchard just south of us.

I'm coming to realize I need to pay attention to urban environmental issues, but also the issues associated with open land. I've been trying to impress some of my neighbors that this is important. You've given me something to take & share with them to get the point across.

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Permalink Reply by Gone Fishin on July 29, 2008 at 12:48

also remember to limit them to one pipe on the right of way. this way if they want to add another pipe in the same right of way later that you are compensated then also.

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Permalink Reply by Bobi Carr ("parker") on July 30, 2008 at 18:21

Could you elaborate on what a triple net lease is?

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Permalink Reply by Grandma on August 5, 2008 at 5:20

What kind of penalties would you recommend for leaving gates open where cows can get out, future errosion, loss of trees that were to be protected. I am sure there are more future damages I just can't think of right now - any suggestions would be great.

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Permalink Reply by Tim Boyet R3 on August 5, 2008 at 5:24

Grandma, I had them add a cattlegap anywhere they put a gate to take the cows out of the equasion.

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Permalink Reply by Tim Boyet R3 on July 29, 2008 at 7:04

I faxed the paperwork to him today. My intentions are to hold off as long as
possible because my lease expires in November.

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Permalink Reply by RL on July 30, 2008 at 2:56

Wow guys! This is one of the best threads I have seen. I don't have any rural or large acreage plots, but I am impressed with all the information shared. That is what this whole website is about! I know you are taking notes Tim, because this thread will earn you thousands of extra dollars and keep you from experiencing the headaches and problems your fellow landowners have had. Thanks to you all and keep up the good work of keeping one another informed.

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