"Back Build" servitude ; pro/cons

I recently asked this question but I was using the wrong term.. The agreement sent to me for review is called a Backbuld. I've not heard the term but it being presented as a servitude agreement to drill under my property to access another section to increase their production.
Does anyone have any objective or subjective pros or cons. On the front end this seems like a not so good a deal for me since there is no mineral interest, royalty, or other incentive except to help the O&G co make alot more.
Any info would be appreciated..cs

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Permalink Reply by Loyd Riviera on August 31, 2009 at 10:40
csimmons,

It sounds like your main concern was the fact that a rig would be located close to your home. If that is not the case anymore and there is nothing to 'look at' then why not grant the subsurface 'backbuild'? I may not have a good understanding of the 'backbuild' but it sounds to me like it would be like granting a pipeline right of way. You get paid and you never see anything. Am I wrong in my assumption?
Permalink Reply by Mac Davis on August 31, 2009 at 13:14
A family friend got an offer of something like $15,000 every 5 years for a wellbore easement back during the days of the wild frenzy. There were some sort of legal hangups about who owned the rights, but they appear to have been cleared up, but the original offer is gone. We'll see if he gets a new offer.

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