Replies to This Discussion

Permalink Reply by Ringgold Redskin on July 24, 2008 at 14:24

Hello Tim
The talk on here is about $200.00 per rod. That's cheap for something you will deal with for the next 20 +years. I have one on the place to a old well (20+).... the original operator took care of the road and ditches & even mowed... after the well changed hands a few times you can't get anything done to the road and forget mowing even around the well location.
I would get in writing what I expect done and when. I also would get yearly rent, taxes are getting higher. Another thing to consider is negative property value from a lease road cutting across the property. Another thought....The gate to my well has 5 locks on it.... everybody and his brother has the key or lock combinations and the gates stay open half the time. Last deer season one of the above drove in and shot a deer and left with it before we could find him. If the well wasn't on my property I would tell them to find another way to their location. Its not worth the hassle .
good luck
Rick

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Permalink Reply by insomniacnla on July 24, 2008 at 14:55

2 friends of mine in Frierson gave J & W road access through their cow pastures. One cattleman who lives right beside the railroad tracts just had the standard agreement. His gates are left open constantly, 5 just got hit by the train and killed. O/G said "prove we did it and then we will reimburse you for the cows you lost" and they never did pay anything for the 5 cows. Then J & W decided to drill on their property in the middle of the cow pasture and verbally agreed (but did not get it in the lease) to put a fence around any well site. No fence was put up, frac pond built and filled, the next day 3 cows died all right beside the frac pond and drilling. J & W said "there is nothing in the frac pond that could have killed your cows" and would not reimburse for the loss of the cows.

The second cattleman leased to J & W and put many, many clauses in his lease. $500.00 fine for the 1st time the gate left open, $1,000 fine the 2nd time gate left open, etc. The second guy has never had a problem with J & W.

If you don't put damage clauses in your agreement, you will have a very hard time agreeing to what damage was done and what the price of reimbursement should be.

As long as the well is producing, you will have traffic on the road across your land, pumper trucks, 18 wheelers hauling in stuff, hauling out salt water, sometimes 5 or 10 trucks a day. The value of your property will most certainly be affected by the right of way and you will NEVER be able to withdraw your consent if it turns out bad as long as the well is producing.

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Permalink Reply by Grandma on August 4, 2008 at 15:14

Could you give me some examples of damage clauses - we are negoiating over pipeline now - have 50 acres and run cattle with pasture and hay field. Thanks -

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Permalink Reply by Grandma on August 5, 2008 at 5:11

Instead of the fines for leaving the gates open wouldn't it work to put in your agreement to put cattle guards at gates? That should keep the cows where they should be.

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Permalink Reply by Bobi Carr ("parker") on August 5, 2008 at 8:30

I've heard that a lot of ranchers do not like cattle guards.

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Permalink Reply by Bobi Carr ("parker") on August 5, 2008 at 8:31

Is this something that they will do?

And if so how much?

I was told that they sometimes do it for a site location.

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Permalink Reply by herefordsnshale on July 25, 2008 at 12:21

Great , great replies! Get it in writing! Some companies pay by the rod, some by the acre. I know of $200 a rod and Chesapeake has paid $4,000 an acre for surface damages in Caddo Parish. These numbers are for rural land, on land closer to the cities, with development potential, the price could (and should) be higher.

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Permalink Reply by insomniacnla on July 25, 2008 at 12:41

Last night on the news, there was a story very similar to the one I posted about. Cows are not very smart and love the taste of anything salty and will drink it.

If a well is drilled and is very productive, the payment of royalties might offset any inconvenience of the trucks driving through. But if the well is NOT very productive, you may only receive a few dollars and still have to put up with all the headaches.

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Permalink Reply by herefordsnshale on July 25, 2008 at 12:49

Cows certainly aren't very smart! I've never lost one to drinking salt water but we've always made companies fence around the tank batteries and to their credit the companies have been pretty good about doing it. We have had pumpers let them get out though, pumpers really hate to close gates when they're only going to be in there for a short while.

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Permalink Reply by insomniacnla on July 25, 2008 at 13:29

The vet told me (Dr. Henderson) that the cows will gorge themselves on the salt water until it kills them. The o/g company kept stating to my friend "we will not reimburse you for your cattle as there was nothing toxic in the pit".

Yes, the pumpers leave the gate open for just a few minutes, but long enough for the cows to slip out and into the woods. Or the pumpers leave the gate open, and then on the way out, they forget that there was a closed gate there to begin with.

If a landowner will have the rates of reimbursement stated in the lease, then at least if the o/g company does cause the death of your cows, at least you won't have to worry about having to fight over the value of the animal. Plus it gives an incentive to the company to not let it happen.

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Permalink Reply by Ringgold Redskin on July 25, 2008 at 14:06

Another story...Pipelines

After they drill the well everyone is in a rush to get the pipeline layed so the well will pay off and start royalties ( I was). I had the first production well so a pipeline was layed to a main line 2+ miles away ...3/4 mile on my property. As they drilled additional wells in the area they wanted to run lines to my first well and set up a compressor to push it thru the same small line. I now have acres of pipeline right away that you can't do anything with but grow grass..... no trees allowed. Where it went up and down hilly areas it washed out and it took forever to get them to fill and re seed.
I have finally given up.... the pipeline has changed hands a couple of times over the years. I spent a sum of money filling in myself. Recently i have made roads and deer plots over most of the lines and this keeps them from washing. But when they have a blowout/line rupture they bring in a hoe and make a mess and leave and you are filling/leveling and pouring rock for several month.
If anyone asks about laying pipe on your land...... run as fast as you can ...or get big big bucks and a firm agreement in writing with penalties..... you will never use the land again but will pay taxes on it for the next 20 + years. Maybe a yearly land use rental agreement would pay the taxes. I wish i could re do my easements over today.... maybe a price per 1000 cu moved thru the line.
As a lot of hassle for little gain ......it's just not worth it ....lay the line somewhere else.

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Permalink Reply by Bobi Carr ("parker") on July 25, 2008 at 16:23

I am in the process of negotiating a road r/w. The gas company has not moved off of the $200 per rod price. I will post results once I reach and agreement.

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