Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on March 23, 2014 at 10:21

I have never seen it happen in any of my dealings but have had people try to get it.

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Permalink Reply by 1kw6x71km1v37 on March 23, 2014 at 13:26

I think it reasonable that a landowner get rental on a well pad and some type of volume-related payment or annual fee for a pipeline ROW. But as 2Dogs said, it just doesn't seem to happen.

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Permalink Reply by Skip Peel - Mineral Consultant on March 23, 2014 at 14:22

I've never seen it happen either.  The directional drilling capabilities of modern rigs give an operator a good bit of leeway on where to locate a well pad.  I think it would be possible to get rental on a well pad under just the right circumstances but with horizontal wells that would be a rare instance.  Many leases allow for use of the surface under certain specific lease terms.  I advise all my clients to negotiate for a No Surface Use clause but to state that they will consider surface use as long as their requirements as to location and compensation are met.  Experienced O&G lawyers usually have a good idea of the maximum acceptable compensation from the operator's perspective.

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Permalink Reply by Joe Aldridge on March 23, 2014 at 17:19

I have a case where I get a yearly rental for a pipeline ROW. So I know from experience that it can happen. One company installed a pipeline on my property without a ROW agreement. I even went to tell them they were making a mistake and they sent a sheriff's deputy to tell me to leave my property. I told him that they were making a bad mistake and then left. Monday morning I was on the phone to the company and they quickly admitted they had made a bad mistake. I gave them two options: Settle with me for a one time amount or pay me a yearly rental. They chose the latter. I feel Cindy is in this position now. EXCO must settle - one way or the other. It can be mutual or it can go  to court. I don't think they will want to go to court. It would not be to their benefit.

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Permalink Reply by Joe Aldridge on March 23, 2014 at 17:34

CS,

I know of one case in the HA area that the land owner was offered and accepted a 2 1/2% ORRI interest in any wells drilled from the site on the property. I don't know the current status of any wells drilled on the property or on the pad though. But it is possible to get that kind of agreement.

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Permalink Reply by George III on March 28, 2014 at 7:11

Hey, I know I am late to get into this conversation, but I would not even think of doing this deal without the help of an experienced O&G attorney. My family did two pads with Petrohawk/Bhp a few years ago (Caddo Parish), and our lawyer did a great job of getting top dollar for each pad, plus a pipeline ROW deal to boot. We could never have done as much on our own; someone had to manage the discussion among family members as well as negotiate on our behalf, and there were issues that we had not thought of considering. In the end it's your choice to decide how much money is enough to motivate you, but the details belong to someone who has done a few of these before (your attorney)! Write me back and I'll get you the name and # of my guy if you want it. This is my  $.02, but I know what I'm talking about!

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