Eagle Ford Shale - Dewitt County
Having (2) wells on same pad. Asking us to sign easement in order to enter through our land and collect oil on neighbors property. Can't we included in that unit? We have no easement clause in lease agreement therefor that is why we are being asked ot sign the subsurface and surface easement. Is the oil company trying to get us to sign in lieu of royalties from second well. I hear that if the BHL is not on your land you can't be pooled in? Any feedback or experience re same would be appreciated.
Thank you for your input. They haven't drilled wells yet. They are putting 2 wells on one pad. One I will get royalties on and the other I won't. I believe they are trying to get me to sign the easement in lieu of any interest in that 2nd well. So basically neighbor is getting a producing well via my land. Neighbor is also getting a 10 acre tank so he'll be able to sale the water. I'm getting pad, wells, tanks and seperators on my property.
Hi -- no ROW given for pad yet either -- negotiating. I have been told you can get at least 30k for the pad. The (2) wells are 23 feet apart. It sounds like they will will not frac until on the other guys land. The subsurface and surface easement are all about the other well. Think I should negotiate having my well drilled first?
Sounds like you have the gist of it.
They will pay good $ for anything. If they want you to sign they will pay real good $.
I would do seperate deals for surface easement and sub surface easement.
Make oil company make the offer first. They will ALWAYS pay much more than they initially offer offer.
On subsurface easement I signed I got 10 times their original offer.
On surface P/L easements I've been paid anywhere from about 1.25 TO 6.5 times their original offer.
I haven't signed anything yet....no right of way signed for sure.
Yes, any surface agreement needs to for sure have a platt of property showing exactly what the easement is granted for.
On a subsurface wellbore easement I did I put in the contract that they would provide me a map of the well within two months of it being completed to show where the wellbore went under my property. They never did send me a map showing this. In the subsurface wellbore easement I should have tried putting some penalty clause about they would pay me $500.00 per month for every month they were late sending me the map. If at all possible there needs to be penalties they pay if they don't live up to their end of the contract.
I would get them to make an offer first. I am assuming they have done that. If they haven't then I would ask what's in it for me?
One idea that you might want to consider is asking for a 1% override from any product produced from the unit they are servicing through your property.
Would love to hear how this comes out with your negotiation.
would the 1% override be different than asking for royalties? I just see how I can not profit from a well being drilled on my property on the same pad as my well and not be pooled in 2 different units.
Thank you for your input.