Replies to This Discussion

Permalink Reply by Missy on January 20, 2010 at 17:49

I don't know the answer, but I do know that you should get a qualified O&G attorney to help you. If you don't, they will take full advantage. It's just business.

• ▶ Reply

Permalink Reply by Wildcat on January 21, 2010 at 5:41

Most companies will not pay a rental. If you have an interest in the unit being drilled, then the going rate is $4K-5K an acre plus Fair market value for timber. If you don't have an interest in unit, then you may be able to get $5k or 6K per acre plus fair market value for timber. The only thing you have to remember is the companies will find a place to put a drillsite, if they have other options (such as putting the site in unit or on someone else). The more options they have the more your bargaining power is greatly decreased.

The agreements for these sites are pretty easy to read and understand, they aren't nearly as in depth as an oil and gas lease. If you need an attorney that is well versed in these agreements, I would recommend Jim Bethard in Coushatta.

• ▶ Reply

Permalink Reply by iceman on January 21, 2010 at 7:28

Wildcat, Thanks for the advice. Have a good day !

• ▶ Reply

Permalink Reply by P.G. on January 21, 2010 at 16:24

As permanent as those well pads may be, and only getting a one time fee, wouldn't it just be better to sell them the acreage?
Wouldn't have to keep the land insured or keep paying taxes on it that way...

• ▶ Reply