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Comment by Dion Warr, CPL on November 6, 2008 at 14:34

Robert:

How much land you own usually makes a difference as to how you should structure your counteroffer to the seismic company. If the seismic company's shot lines or receiver lines don't really impact your property, in many cases you can try to jump up and down about what they should and shouldn't do (and money, and everything else), but in the end, they just "shoot around you", which means they just make sure to not lay anything on or across your property, and they shoot the seismic anyway. If the company does not reach an agreement with you, they are not suppose to "use" or release (or license) the data under your tract to anyone else, as doing so would constitute a mineral trespass, but who's to say that they don't do it anyway (by mistake, of course). If the company follows the rules, they would still get more or less useable data underneath your tract, but they would "turn it off" or redact it from the seismic data. However, this situation leaves "holes" in the seismic grid, and if there are too many, it makes the seismic less marketable, if it is marketable at all. Some companies (and some permitting agents) are better than others, and will work with you even on smaller tracts, particularly if they want to put something on your property (be it shot hole, geophone, cable - particularly if access in the area is a problem, or a vibrator truck).

If you have a larger tract of land (say, 50 to 100 acres or more), you would want to reach an agreement, but limit their use of shot holes on location to something reasonable, make sure they restore the surface and "cap" the shot hole (basically, put a plug in place downhole to prevent groundwater from being contaiminater or rising to the surface. You should be compensated for each shot hole (anywhere from $25 to $100 per hole, depending on where you are and what level of inconvenience you have on the property. You may wish to limit surface access to light trucks, as well as limiting "thru" access (ingress and egress across the property to get to other adjacent land).

You may wish to ask for a copy of your seismic data, although most companies are reluctant to do this unless you have a sizable tract land (100 - 200 acres and over), as well as a buffer around your tract (say like a quarter-mile to a mile, depending on how large the tract is). If they agree, you would want this data to be submitted to you electronically in SEG-Y format (that way you can bring the data to a geologist or geophysicist for interpretation for personal use). Owning your data assists you going forward if you want to shop your property to someone, and the buffer allows for any anomalies in the seismic data to be properly interpreted (think of it as wide-angle shot, with your property in the middle).

Whatever the size tract you have, improvements on your property (houses, barns, water wells, trees, ponds, fences, gates, etc.) should be safeguarded. Depending on your operations on the property, you may wish to have advance notice prior to entry onto the property (particularly if you run cattle, or have a tenant, etc.) You want to make sure that you or your tenant is properly compensated for crop, livestock, or timber losses.

Whatever you do: DO NOT SIGN A RELEASE until all damages are settled. Written contracts always override verbal contracts (unless there is a clear case of fraud in the inducement, coercion, or illegality; "he said, he/she said" doesn't work). Walk the property with the agent prior to signing off.

There are a score of other things I could say, but much it is specific to what your particular situation is or would be. Feel free to drop me a line if you would like to discuss further.

Comment by Steven C. Bankston on November 5, 2008 at 4:07

If there is any timber or crop, they should reimburse you for this!! If there is a water well, you need to tell them - any structures or anything on the property you don't want them to touch, they need to be told. They don't have to lay their seismic devices in a perfectly straight line.