Replies to This Discussion

Permalink Reply by adubu on May 3, 2010 at 15:52

avg pad site damage in Nacogdoches over the last year ranges from 3,000 to 4,500 per acre usualy farm land with pad site range from 2-6 acres in size. payment range 6k to 25k.I know of no one receiving 50k unless in very unusual expensive location and land was truely apprasied at 10k per acre. What the offer per acre & who the company offering you for pad site? Do you have minerals and they drilling your well or you surface owner without minerals. If you have no minerals then you want upper range per acre. If you have minerals you want them to drill your royalty so lower range for pad site IMO

Permalink Reply by Tammy Brown on May 4, 2010 at 12:36

Adubu,
Thanks for your input, I think sometimes people exaggerate things and when they do we all get confusing info. Yes I have the min rights and own the land, they want to give me $2,000.00 an acre BUT property is selling around there for $4000.00 and acre I have some comps for the area from a Realtor not just hearsay. I also had pines planted on the land and some mixed timber. Its Valence, hasn't been pleasant dealing with them. They are already drilling they say they settle at the end, which is another issue. BUT I have been told by people working for other drilling comps that 50K is not uncommon, maybe just for us Nac hicks they don't think we know any better!! JUST a joke don't get offended anyone, I did say US

Permalink Reply by adubu on May 4, 2010 at 14:08

Tammy Brown---If they have built pad and move rig on the property without pad site damage agreement please review you lease in detail and make sure it does not give them right to drill without paying you the surface owner any damages. If they have lease they have every right to drill the minerals.Go see a oil & gas attorney for help in dealing with the situation. You may then need a trial attorney also to litigate it. The oil & gas attorney can advise you on that issue. There too many issue to review on this blog site like roads, water, timber, liability, repairing site after drilling, pipelines,etc only a attorney can help solve the situation. How many acres have they taken for drill site including road to site? Yes if lands selling at $4000 acre you should receive at least that per acre. I am not a attorney just some one who has like you learn a lot the hard way. GOOD LUCK and let me know what develops.

Permalink Reply by DJG on May 7, 2010 at 3:52

I have seen leases where the amount for surface damages was specified in the addendum A agreement and set at $5K-$6K / acre.

On one hand, it would help protect the land owner to have this number worked out in advance in the lease contract. On the other hand, if the value of the land increases sometime down the line - then that clause might bite you in the a** should the land values jump up to $10K/acre (or more) sometime in the future?

If you have current comps stating that $4K/acre is the going rate for your area, then you have a pretty strong case for getting no less than that amount. I'd try for more, however.