Replies to This Discussion

Permalink Reply by Bobi Carr ("parker") on August 1, 2008 at 13:44

Some people may "feel" that it should cost the gas company $1,000,000 to put a well site, road, pipeline, etc. on their little piece of heaven. They want royalties but no give and take.
Should we expect the gas company to extract the minerals from China but pay us a royalty?

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Permalink Reply by Tim Boyet R3 on August 1, 2008 at 14:37

All is well. My attorney called and they agreed to the terms we asked for. I do have to thank everyone here for all the replies to my post there was a lot of great info shared here. The more informed we stay the better we all are. Once again thanks!!!!!

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Permalink Reply by Bobi Carr ("parker") on August 1, 2008 at 14:39

Just curious, what did the payment amount to per rod?

I am still in negotiations!

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Permalink Reply by Tim Boyet R3 on August 1, 2008 at 14:45

Actually they never offered by the rod just by the acre. They still would not budge on the price per acre but they made it up on timber damages. It didn't matter to me where it came from.

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Permalink Reply by Bobi Carr ("parker") on August 1, 2008 at 14:53

What was the length and width?

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Permalink Reply by Grandma on August 4, 2008 at 14:31

We are in 2-15-16 and are in negotion over pipeline. Are you anywhere near me? They are saying $225 a rod for two 12 inch pipes with a 50 foot right of way. We have mostly cleared land with cattle so have little timber. Any suggestions on getting the price up? What is the highest you have heard of them paying per acre that includes damages and rod price? HELP! I hate to be taken advantage of like we did our lease bonus
1 1/2 years ago.

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Permalink Reply by Tim Boyet R3 on August 4, 2008 at 16:07

My best advice is see a good lawyer. I let him do the talking. They did not want to budge from there first offer but he made a counter offer after just one day of waitng they accepted our offer. My lawyers last words to them was we will see you in court.

Permalink Reply by Bobi Carr ("parker") on August 4, 2008 at 16:28

Grandma,
I'm still negotiating but have so far only been offered $200.00 per rod.

Herefordsnshale put in a previous discussion, make sure with a pipeline that they will come back and clean up the property once the weather has changed. After they cover the pipeline the fill dirt will settle and you will have a mess if they do not come back and clean it up.

So far I am only at $200 a rod for a road. But I will keep you informed.

Permalink Reply by Kassi on August 5, 2008 at 8:40

The problem is your definition of reasonable and theirs may be two very different things. If they have to get written permission from you to do things on your property then you maintain a little control. I have spoke to people with not so nice experiences in which the O&G company damaged irrigation systems instead of listening to the land owner and putting a road in from a different angle, one person had their future home site bulldosed and the response was, there is nothing in the contract that says we can't put it where we want it. The guy had over 20 acres, he was willing to let them put it on his land, he just wanted them to put it on one side and they did not listen because the contract did not give him the rights he needed on his own property.
Remember, where they put a pipeline you can no longer grow trees and you cannot build over it. Where they put a road you can no longer use the land under it and sometimes around it. Where they put a well you can no longer use. If they eventually leave the site you still have to have any dirt that may be contaminated removed and fresh dirt brought in before building on the site in order to get an FHA insured loan.
I do not think you have to charge a million dollors for them to access your property but you should be compensated given the lack of use of the land once they move on. Any land owner gets 25% royalty. The person who sacrifices their land should get more. The land becomes virtually unusable to the land owner, that should be compensated for.

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Permalink Reply by Bobi Carr ("parker") on August 5, 2008 at 8:49

I beleive we agree on most items. The only thing that I disagree on is that it should be completely withheld.
I have agreed to no surface operations but that I cannot unreasonable withhold said operations.
I think that if someone is advised to only sign a lease that excludes all surface operations, then the gas company will tell them that for an acre they will pass on leasing their one acre. If you are talking about a large group the power balance will change.
Many small landowners will try to include the clause, be turned down, and then lease with no protection whatsoever.
Each individual situation is different.

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Permalink Reply by Kassi on August 5, 2008 at 9:52

That is why I hope small land owners band together. It is the only way to truly have the bargaining power to get a fair deal.

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Permalink Reply by Grandma on August 5, 2008 at 10:15

How do I find out what is a fair price for pipeline compensation. I feel that since the lease bonuses are similar to the Barnet Shale then the pipeline compensation should be similar. But I have not been able to find out this information. It seems that they want to have a set price per rod but are willing to negotiate on damages. Any help on what I should aim on per rod or per acre for total compensation in the negotiations?

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