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Permalink Reply by Bobi Carr ("parker") on August 5, 2008 at 19:32

I found the following on allexperts.com the opinion is from 8-14-2007 by James H. McConnell, CPL

Question:
I am in the Barnett Shale, Johnson County, Texas. I am trying to find out what the going rate is for price per foot for the road that will be built to the well. I have one well up and pumping with a 1100 ft road. They want to add 3 more wells. I am afraid I sold the first road too cheap. Can anyone give me any guidelines on going rates?
I am so new at this and don't want to be taken advantage of.
Thanks.

Answer:
If it were me, I would want twice as much for the second one as the first. They obviously made a well on the first one and now they are under the gun to drill more wells.

If it were me, I would tell the company where to put the road, not vice versa. It might be 2000 feet going my way. You are going to live with all of that for a long time, you can't get enough. Make them agree to where they are going to lay the flow lines to the new wells. They will have pipelines all over your place and you won't be able to build anything over them, your cows will step in the holes they leave and your tractor wheel will make a ditch in the r.o.w because they didn't compact the earth on top of the line correctly.

You need to trade everything at once and tie it all to the road and pad damage agreement. You won't get them in this position again.

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Permalink Reply by Bobi Carr ("parker") on August 5, 2008 at 20:36

From a Barnett foru
m:
Terry - You caught me right before going to bed.

If the company has a subsidiary that is a public utility (the right to condemn property through imminent domain), you have less bargaining power. However, if you are dealing with just an O&G company trying to install pipe across your property, I would take full advantage of them (unless the lease grants them the right to lay pipelines across your property . . . and those rights would have to include the right to transport third-party gas across your property).

If you actually live on the surface, I'd charge them by the foot if they've played hard ball with you. Tell them that since they did not bother to include 50% of your property in their unit, they can pay you $20-$30/foot to cross your property (Barnett Shale prices).

Otherwise, tell them you'll be happy to see them through the imminent domain hearings. Tell them they can pay your price, or you'll let them try to use the imminent domain rights they might possess.

Tell them you have nothing to lose, since they seemed to have nothing to gain by being more generous to your family when setting up the unit.

These are bullying tactics. The public officials who control imminent domain claims do not typically smile upon bullies.

With that in mind, make sure you have the time to show up to hearings, and to give your side of the story. A good lawyer would be helpful, but I've seen mineral owners do a fine job on their own. YOU MAY LOSE on the price, but you will show the O&G company that you refuse to be pushed into a corner without a fight. You also become an example for your neighbors when some other company comes in and tries to force their way.

I hope this helps. I hate bullies.

Jeffrey G. Bane
I-43 Associates, Inc.

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