Replies to This Discussion

landownerPermalink Reply by ken hatcher on November 30, 2009 at 4:31

Thank you!

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landownerPermalink Reply by Bacon on November 30, 2009 at 5:27

I seem to remember $5k an acre last year in La. for a 7 acre pad + $300 a rod for a pipeline ROW.

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landownerPermalink Reply by adubu on November 30, 2009 at 6:40

Thanks Baron that what I was looking for. Anyone have any $ numbers for the Texas side?

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Permalink Reply by Wildcat on November 30, 2009 at 7:07

Depends on what your lease has for liquidated damages (most leases are $2,500.00/acre) The most I've heard people being paid is $5K/per acre plus FMV for timber. Most pads are now in the 4-5 acre range since the permitting is easier on a smaller pad. It is an intersting thing though people are getting paid more then their lease requires for liquidated damages.

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Oil & Gas ProPermalink Reply by Randy on November 30, 2009 at 9:16

Many leases don't specify liquidated damages. Only a few companies put those clauses in their standard leases.

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landownerPermalink Reply by ken hatcher on November 30, 2009 at 10:52

I have been told timber is down 50% from two years ago, so if you have a hunch they may drill on your property, better plan accordingly.

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Oil & Gas ProPermalink Reply by The_Baron on December 1, 2009 at 5:25

timber prices are in the tank right now. Cheap imports and low demand are killing timber, especially for pulpwood.

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landownerPermalink Reply by BJ on November 30, 2009 at 12:44

Adubu, my inlaws received $26,000.00 for 5 acres in Red Oak Lake Field in LA (this was for all damages). Hope this helps a little. BJ

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landownerPermalink Reply by adubu on November 30, 2009 at 13:19

thanks it does

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landownerPermalink Reply by Henry on December 1, 2009 at 2:20

adubu,
One more thing to think about... Aside from giving up the land for the pad site, it may be that the remaining well depreciates the vaule of your remaining land. I know people who allowed a pumping station on their lakefront land 50 years ago for $1000. It is still there today and they cannot get rid of the eyesore. It really detracts from what is an otherwise absolutely beautiful property.
I'm not saying you shouldn't let them drill -- they have to drill somewhere. But consider writing the contract with enough protections that the well (and fence, and road, and electrical lines) won't diminish the rest of your property for the next 100 years.

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landownerPermalink Reply by ken hatcher on December 1, 2009 at 3:48

Adubu, thanks for this discussion. It has helped me also.

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