Is it reasonable to ask for fees from an oil company to use our road to get to a pad site for a well drilled on our land. It is not a public road nor one that follows a section line. I don't want to be greedy but reasonable with them. Just wondering if maybe they get free use of the road since they have the minerals leased?
Thanks,
Terry
Terry:
It is reasonable to be compensated for utilizing a private road on your property. I would make sure that it is an all weather road, especially if your located in an area where weather has a major impact on the surface (snow, etc), as the trucks/equipment will eventually cause corrosion. Also, make sure you address the number of wells involved as some leases contains several wells which means more traffic. Also, be sure to address damages which could occur to other objects on your property such as cattle guards, gates, and fencing. I have seen situations where the operator built an all weather road and constructed new entrances which were all conducted to the landowners specifications.
I disagree a bit here.
If it is to access wells that you are also getting paid from, then compensation for using your road to me is not reasonable. However, still cover yourself for damages. If they damage your road, you should be compensated.
Using your road to access wells that you arent involved in is a different story.
And I disagree with Adam. If the road acess had to be paid for if it was on land other than yours, it’s perfectly reasonable for you to be paid if you and the oil co aren’t the sole beneficiarys of the well/s. Just say no to free stuff for the oil co’s. The oil co is probably getting 80% of your oil, no need to give them free use of your surface too.
Adam said:
I disagree a bit here.
If it is to access wells that you are also getting paid from, then compensation for using your road to me is not reasonable. However, still cover yourself for damages. If they damage your road, you should be compensated.
Using your road to access wells that you arent involved in is a different story.
In all jurisdictions that I am aware, the mineral estate is the dominant estate. However, that does not allow the dominant estate access to the improvements on the surface estate.
Look at your lease form to see what you have already agreed to.
Otherwise,
Charge them $1.00 a foot of road use per year - and maintenance.
I am obviously more company friendly that the rest here. Glad to hear everyone elses opionions though.
I’ve been in this business for over 30 years and all of the above answers carry credence. My suggestion is that all bases should be addressed and covered when contracts are signed. Plan ahead and stay informed before signing on the dotted line. Only you can take care of yourself.
they should pay the land owner (you, I suspect) for damages from their building a road on your land to their facilities & they should also maintain it, gate, road, drainage, etc. If they are using an existing road on your property, they should maintain it as well. I would be surprised if they didn’t improve it to handle heavier vehicles. If they widened it, there would be more land used.
I do agree with you Nick. The unfortunate problem is that some surface owners are not aware that they can collect and recoup for damages. It is not my responsibility to teach landowners how to do their business, but I do have a moral responsibility to tell them to go to an attorney.
It has been my past experience with operators that most are very fair to the surface owners in regards to damages caused by oil field related activities. In many cases, the operators have gone above and beyond their duties such as erecting new fences and replacing existing cattle guards. You must remember that the acreage will be utilized for years if a well is made on the property.
You are so correct .......