Seismic terms questions...
For those of you who have agreed to allow seismic on your properties, I'm curious how successful you might have been with respect to your contract on the following terms:
1) Fee: I've seen that for the most part, the going rate that folks have been able to negotiate has been in the $25/acre range. I've heard, however, that it has not been out of the question to see $35/acre and even more for some large parcels that would not be possible to extrapolate by shooting around your neighbors property lines.
Any confirmed folks out there who did sign at $35/acre? $40/acre? $50/acre? More?
2) Anybody have luck in negotiating that your deal is contingent upon you also recieving a copy of the processed seismic data for your tract of land? Sure would be nice to have that information so as to even the playing field by knowing what is under your dirt?
3) Anybody have luck in getting the seismic company to agree that they cover your legal fees to have your own O&G Lawyer look over the contract? I believe 100% in the value of spending the $$$ to make sure you have your own interests covered by proper legal representation. That said, the $$$$ you recieve in allowing seismic can, depending upon the size of your parcel, pretty much be swallowed up by a few hours of billed lawyer time. Since you would not have required the lawyer expense if there was not a seismic request for your land it seems reasonable to me to request that these fees be paid by the company requesting access to your property.
4) Anyone successful in demanding that any disagreements regarding "fair market" compensation for any damages should be resolved through 3rd party arbitration at no cost to you?
5) I have a pretty good sense of what basic surface protections to demand in the contract, but if anyone has advice regarding any oddball addendum items to request then, well, I'd sure appreciate that input.
Thanks y'all.
1) Fee: I've seen that for the most part, the going rate that folks have been able to negotiate has been in the $25/acre range. I've heard, however, that it has not been out of the question to see $35/acre and even more for some large parcels that would not be possible to extrapolate by shooting around your neighbors property lines.
Any confirmed folks out there who did sign at $35/acre? $40/acre? $50/acre? More?
2) Anybody have luck in negotiating that your deal is contingent upon you also recieving a copy of the processed seismic data for your tract of land? Sure would be nice to have that information so as to even the playing field by knowing what is under your dirt?
3) Anybody have luck in getting the seismic company to agree that they cover your legal fees to have your own O&G Lawyer look over the contract? I believe 100% in the value of spending the $$$ to make sure you have your own interests covered by proper legal representation. That said, the $$$$ you recieve in allowing seismic can, depending upon the size of your parcel, pretty much be swallowed up by a few hours of billed lawyer time. Since you would not have required the lawyer expense if there was not a seismic request for your land it seems reasonable to me to request that these fees be paid by the company requesting access to your property.
4) Anyone successful in demanding that any disagreements regarding "fair market" compensation for any damages should be resolved through 3rd party arbitration at no cost to you?
5) I have a pretty good sense of what basic surface protections to demand in the contract, but if anyone has advice regarding any oddball addendum items to request then, well, I'd sure appreciate that input.
Thanks y'all.
Tags: Seismic, contract, permitting, rider
Views: 85
Replies to This Discussion
-
Permalink Reply by Henry on
-
Many of the standard permits are open ended. Make sure you put in a termination date.
-
Permalink Reply by DJG on
-
Thanks for the input. Not a huge tract, but 160 acres so it would be a decent size chunk in the overall picture.
My leaning is to go ahead and ask that they be included and see what the reply is.
-
Permalink Reply by DJG on
-
Thanks Jay.
Agreed, not a deal killer if they don't agree to sharing the data - but should give us other trade-off bargaining power with respect to negotiating other concessions/protections.
This is not for our minerals in Shelby County, but rather for our other property in Washington County. Historically, there have been some decent Austing Chalk oil and gas prospects surrounding us.
Some recent maps that I've seen have shown that the Eagle Ford trend does continue upward from South/Central Texas and our area is right on the boudry lines delinating the oil/wet gas transition window.
Curious to know if having the data for our 160 acre tract would help us know if, indeed, we did have oil. Would that info be possible to be accessed from our 160 acres of data?
Thanks again for your insights and assistance.
-
Permalink Reply by Pauln on -
I agree totally with Jay. Seismic mainly just shows the structure of the area. I attached a piece of seismic that shows what you get if you have 40 acres of Haynesville. You would never know if you are high/low to your neighbors.
The oil/gas company can do sophisticated seismic attribute analysis if the seismic they have covers many square miles and they can correlate that seismic to many wells in which they have lots of petrophysical data.
In your case with 160 acres, there is no way for you to know. Stick to your geological maps for your answers. - Attachments:
-
-
seismic 660.jpg, 128 KB
-
-
Permalink Reply by DJG on
-
Thanks guys. Helpful information.
I think that I will still ask that they provide the information to us as part of our contract with the assumtion that they will deny the request.
Will then use that denied request as a barter point for them to conceed other points that I would like to have.
-
Permalink Reply by adubu on
-
answers to your questions 1) No--$25 from Seitel Data in East Texas area 2) No- I did ask but they said no way 4) basically yes--include addendum to permit saying they agree to promptly pay in full for all damages to the surface of the land, roads, culverts, bridges, fences, building, improvements as well as damages tpo growing crops, livestock,grasses,timber,trees, and/or and other personal property. Payment within 30days after it has been brought to Seitel Data's attention 5) The landowner will receive one week notification before they start. Landowner has no liability. They will remove all equipment and once removed can not return at later date and resume operations without new agreement. 3) No--that's your choice they said
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
-
Fayetteville Shale
149 members
-
North Caddo Parish
358 members
-
Central Texas Gas
63 members
-
Cass County, TX
119 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
