"Listen to Skip. The economics of drilling 10-12 of the 7500' wells over the three (3) sections might look better in the area than drilling 5-6 10K wells and 5-6 single section 4500' laterals. There are a lot of reasons for companies to…"
"You are not being low balled at $425/rod. Others might receive a little more due to several variables, but $425/rod is in the ballpark of fair market value for the size of line and ROW width they are wanting to place on your property."
"Additional questions: What is the requested width of the ROW?, how much is temporary and how much is permanent?, how many rods (16.5 feet) in length will the ROW be on your property?, are there alternative routes available for them to take?
"$0.25/bbl to $.35/bbl depending on distance from location. Keep in mind you want to price the water where the operators see value and want to use it. Let's use Skip's $.30/bbl for an example. Would you rather have $0.30/bbl and sell…"
"What parish are you located? Is the pipeline for wells where you own an interest or don't own an interest? A pipeline should more than likely be paid for on a $ per rod basis (1 rod = 16.5 feet), not on an acreage basis."
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Thanks God bless.
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As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More