Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on February 8, 2013 at 3:19

Doug, here in the Haynesville Shale part of the world $5K/acre is a fairly standard value for surface use without extenuating circumstances.  However values can vary quite a bit depending on location and specifics of surface use.  I think you will get more feedback from those who are more similarly situated if you post your questions in Keith's Eagle Ford website:     http://eaglefordforum.com/

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Permalink Reply by Roy Austin Smith on February 8, 2013 at 7:26

You will wish you had never seen this road. it is not worth it.

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Permalink Reply by Henry on February 8, 2013 at 13:17

A lot of factors will go into whether or not you might want to enter into this agreement.  Do you live near where the road will be?  If so, you might see a lot of truck traffic at all hours of the day.  There might be a lot of dust, if the road is not paved.  So, think about what it's worth to you.  If you elect to go ahead with it, then make sure your contract specifies (at a minimum):

-  For how long are you giving Hunt the ROW?  You can say how long the permit is good for, and then specify whether or not they must restore the area when they are done.  I, personally, would never allow a permanent ROW.  Maybe give theme an initial time period, with an option to renew for more money.

-  What type of road will it be?  Dirt or paved?  Who maintains it?

-  Will you limit the times of day during which they may us it?  (Maybe you don't want all that truck traffic between 9pm and 6am.)  Is there a max size truck?

-  Are they allowed to cross your property with hazardous materials?

-  Make sure you have a good damage and indemnity clause.  I.e., they must clean up and fix anything that is damaged, and make sure you are not held responsible.

There are probably many more things to think about, but this is a starting list.

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Permalink Reply by adubu on February 9, 2013 at 12:19

What Henry sais is good starting point-- It is basically a ROW like a pipeline and I would talk about Bonus of $$$ per Rod and width of road-- need all the good language in it, etc. You for sure need attorney to write this ROW agreement. BTW Hunt Petr. was purchased by XTO and now XOM

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Permalink Reply by Roy Austin Smith on February 9, 2013 at 13:01

Money sounds good. with about fifty years with a road on our property, running close to our home and dividing up our land was a real bad mistake.  For a while we got free gas.

you have to put up with hunters, going in and out at two or three o'clock in the morning. you have to put up with mad, mad neighbors, when you put a gate up on it. you have to put up with truck drivers coming in with no key and breaking or cuttlng locks. you have to put up with neighbors and strangers who think  it is a public road. Never, ever let the county or parish grade your road, they will take over and make it a public road after a few times of maintenance. It is just one big headache.

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Permalink Reply by Doug Cox on February 10, 2013 at 0:05

Thanks for all who weighed in.  Im sure this topic will be good information for several more owners.

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Permalink Reply by adubu on February 10, 2013 at 9:39

Doug--- there has been many posted discussions  on roads and ROWs on this site. Suggest using search on  site and read all--- believe you find some ideals. I would suggest if you agree to road  that you negoiate ROW as much in your favor you can like you dictate route of road across your property and not let them go easy way though  best of your land.

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Permalink Reply by Eric Camp on February 14, 2013 at 6:32

Agreed Abudu. Just like a gas pipeline easement, a road easement will have a long-term impact on the property. The typical "company form" won't provide the landowner many protections. Without much pushback from the company, the easement agreement can likely be edited in a number of ways that provide the landowner with protections. Too frequently people sign the company forms and then kick themselves later on.  

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Permalink Reply by emily amedee on February 11, 2013 at 22:10

Doug, Hunt put 30 rods across the entire frontge part of our land and paid $500 total, said this was in the lease???  However they very quickly sent another paper to be signed  for this.  I have bn informed that the rate is $500 PER ROD...-$15,000 not $500.  Unfortunately my mother who is 73 signed it and returned it..but it was under false pretenses...she was misled.  Getting a lawyer now!

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Permalink Reply by Roy Austin Smith on February 12, 2013 at 1:41

Roads by oil companies across your  property is not worth the five hundred or fifteen thousand. they are nothing but a constant headache. nothing but trouble.

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Permalink Reply by Alvin C. McCormick on February 13, 2013 at 3:17

this may help.

The road in my case has been built.

The oil company said they had the right to build the road because of the lease.

So they built the road and so far have not used it very much they have placed an oil well about 400 feet off my property in the back or at the end of the road.

My lawyer told me not to sign the DAMAGE RECEIPT & RELEASE form from the oil company for the road which was 5 thousand an acre.

Now the oil company wants to build a frac pond and is offering the same per acre.

Any thoughts about this from the group .

 

 

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Permalink Reply by Wyomingite on February 14, 2013 at 7:08

Doug,

It may not be applicable to your state or situation, but in Wyoming road compensation rates for horizontal wells are roughly $15/rod initialy and then a CPI indexed $5/rod annually per well with a maximum disturbance width of 40'. The reason for the per well rates is that your impacts are much greater if the road is used to access 20 wells versus just 1 well. This road will impact you and decrease the value of your property, so be cautious. Again, I have no idea what the legal status for surface owners is in Texas, just trying to give you an idea of what is going on in an area where land values are much lower than your location.

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