Replies to This Discussion

Permalink Reply by ALongview on March 21, 2010 at 4:46

I think it was discussed that they were doing ROW stuff for the Endeavor partnership near the Hall well in the Slaughter survey. What can you share as far as pipeline or drilling info? I saw the question about Devon as well and have not heard anything specific. They do hold 400+ leases in the Northern part of Sabine in their primary term. These look to start coming up in April or so of 2011 so they better get going to hold some of that or maybe they plan on paying a lot of extensions? Have you heard anything regarding Devon drilling?

Permalink Reply by Frank Coday on March 21, 2010 at 5:34

Visited the Hall location on 2/28. Bronco Drilling rig no. 25 (1500hp) was drilling. Was like a small city with several Halliburton trucks on site. Think they started around 2/20. Went back on 3/13 and a 24 hr. security guard was set up half mile from pad. No more access by public. Am confused about the whole process. Was permitted on only 80 ac. tract. No p-12 and permitted for 18,500 ft. vertical. I suppose they will submit ammendments to go horizontal and pooling depending on what they hit. I have small mineral interest leased to Endeavor 2,200 ft. from well site. You comments ALongview and others pls.

Permalink Reply by Susan McCulley on March 21, 2010 at 5:54

Negotiate carefully. They start low, talk a lot about the offer each time, but increases are very slow and incremental. You should figure out where you want to be before talking to them and work toward that. The Railroad Comission has a link to a site written by an attorney concerning the condemnation process and it has a lot of excellent information. There are a lot of issues that may or may not be as important as the money to you and only research on the topic will help make those decisions..

Permalink Reply by Trey on March 21, 2010 at 6:15

I have discussed and researched the "option" they are presenting with Senior ROW agents and attorneys. According, to them an easement can be condemned but not an option. Therefore, the option they are presenting can be turned down. I havent got to the point of negotiating because i havent been provided a certified plat nor have i seen any indication that they are a utility company. The whole process has been rather backwards but i have no problem with working with them. i just want to ensure all parites are prepared. what are your thoughts with regard to there offer and do you know of anyone who has signed. thanks, Trey

Permalink Reply by Susan McCulley on March 21, 2010 at 8:17

As I understand it, they are not regulated by the PUC but by the Railroad Comission, who issues them their right of condemnation. The "option" is a promise to sign the final contract so you have to be sure everything you want is in the Option, plat included, because once you take any form of payment the deal is sealed and the negotiating is over. I dont know anyone who has signed but most of their Landmen have left the area so I assume a lot of the line has been secured. Which part of the line are you on? We have not signed an option or contract at this time.

Permalink Reply by bill nethery on March 21, 2010 at 11:36

We have land that is on this row. We were approached about the option. I spoke with my attorney and found that if the option is signed, the company has a lot more freedom when the pipeline is actually laid. The initial offer was very low and has increased, but not significantly. They keep wanting to talk acres instead of rods as the numbers appear a lot larger. If I calculate correctly there are about 52.8 rods in an acre that is 50' wide. Lone Star aaalso wants to be able to lay additional pipeline in the same row for a prenegociated price. I believe the option is a device to obtain commitments before an actual fair market price is established in Sabine County. There should be quite a few pipelines laid in the near future in the county and the price/rod should increase from the rate now being offered. For me - wait until the pipeline is ready to be laid and final plans are made before negociating.

Permalink Reply by Susan McCulley on March 21, 2010 at 11:59

The rod prices are based on the rod length [16.5ft] for the length the pipeline is on your land and have no calculation based on width. On the money end, there are three items to consider, rod price, surface damage price, and loss of future production [as in timber].
As I understand it, the negotiated rod price in Shelby and San Augustine Counties presently is running about $250 per rod, plus surface damages. The above post is correct, they like to talk a flat per acre rate as the numbers sound good but are actually far below the ones just mentioned in adjacent couties.

Permalink Reply by Trey on March 21, 2010 at 12:16

i agree with and appreciate all of the comments. it is important to note that an option is not enforceable... a row easement can be enforced, assuming the company trying to obtain it is considered a utility company. please keep me posted as to how everyone moves forward with this. thanks, Trey

Permalink Reply by ALongview on March 21, 2010 at 12:21

Trey, I never heard whether or not you heard anything about Devon planning to drill in the area?

Permalink Reply by martha Rita Haney on March 21, 2010 at 12:48

Susan, we own land in the row and have been negotiating on price. The $250 to
$300 per rod plus surface damaage is what I have found in Shelby Co. by Southwest pipeline. Yes, they talk about per acre price and be careful of the "sales" talk. I understand
there is a good attorney in Center who is experienced with such negotiations. His name is McLeroy. Many facets of contract must be considered, such as liability ins.
top soil back on top, the word "exclusive" right of way deleted. etc.
Lets keep informed and look our for our children's interest in the future.
I do not know anyone who has signed....one person is close @ $150 per rod.

Permalink Reply by Terry Tootle on March 22, 2010 at 14:48

I'm with you Bill

Permalink Reply by Terry Tootle on March 22, 2010 at 14:46

I have had 3 different landmen contact me. Two quit because the boss is a jerk and the other might have done the same thing. Now one is saying he is the senior landman to wrap everything up.

• ‹ Previous
• 1
• 2
• Next ›
• Page