landowner

3D Seismic testing lease negotiation

We were offered $15 per acre  for 3D seismic testing.  The testing involves company drilling   two rows of 3 inch diameter holes.  Ther eare about 30 holes in each row and  each hole is about 20 feet deep.   The rows are about 1600 feet apart.  The operation covers  about  52 acres.   Does anyone know what  the  current market value is  for  landowner to  negotiate  price for  3D seismic testing ?   Other than some surface damages- are there any environmental concerns  for landowner to consider?   Thank you!!

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landownerPermalink Reply by Bacon on March 9, 2011 at 17:48

A couple years ago we got $15 an acre as the initial offer for the Veritas Red River shoot.  The going rate then was $25 so they gave an extra $10 for "damages".  That was for a one time deal.  Another outfit, Micro Seismic, pays every year as long as the holes with their equipment are still in the ground.

 

I don't know what the going rate is now.


landownerPermalink Reply by David Bass on March 9, 2011 at 18:32
Thank you! 
Permalink Reply by KIM CASWELL on March 9, 2011 at 18:29
we got 25 an acre plus i only allowed cables no blasting.

landownerPermalink Reply by David Bass on March 9, 2011 at 18:32
Thank you Kim.

Oil & Gas ProPermalink Reply by Robert G. Oliver on March 9, 2011 at 18:33

T

hat  is about right but it depends on the type of land it is and what type of charge they arre going to set.  I would want to know the charge size before I would sign up.  I would want to know how close to any wells or  buildings first.  If you havde any more questions email me and will try to answer them.  I ran crews for over ten years.


landownerPermalink Reply by David Bass on March 9, 2011 at 18:38
Thank you Robert,  I was just reading one blog on another site and they reported  3D seismic lease figure of $5500.  However I couldn't find any  other  figures that high.  If we sign such a lease , would you recommend that landowner limit it to a "one-time"  operation? (and  that would mean that the company would need to negotiate any future seismic operations.)

landownerPermalink Reply by Bacon on March 10, 2011 at 5:13
As far as I know (which aint a whole lot), conventional seismic such as 3D is always going to be a one time deal.  Micro Seismic is different in that they are monitoring the fracs of multiple wells and who knows what else.  That's why they are a long term deal.

landownerPermalink Reply by David Bass on March 10, 2011 at 5:21
Thank you - that is helpful !

landownerPermalink Reply by Spring Branch,mineral owner on March 10, 2011 at 5:29
I got $25 an acre.

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