I am in Oklahoma and own surface and minerals in the same tract. My Lessee wants to lay a flow line for the water and pay $35.00 per rod. Is that reasonable for pasture land?
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Are you asking about a temporary water line - such as for a few weeks - or a permanent water line? Is it carrying fresh water for a frac or produced water being transported to an injection well? Your post says water injection well. Temporary fresh water line is usually laid on the surface for a short period and would be lower priced than a permanent line. The agreement should specify the dates for the line. If it is permanent or carrying produced water, then you would want it buried so it does not interfere with your surface use. You would definitely want a detailed long-term surface use agreement, including indemnity and damages, for anything other than a temporary fresh water line.
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Thank you for your information. The line is for a water-flood unit so it will last as long as the production. I have a clause that the easement/right of way will terminate if it is unused for 12 consecutive months, but I was wondering about the $35.00 per rod.
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No idea what rates are in your area. However you should be concerned about this easement adversely affecting surface value. With a waterflood, consider it many decades and past your ownership. If the line is not buried, will it be moved around and you will have liability for damage driving over it. The operator’s employees will be out and about your pasture as needed and you will be able to keep them out. Trucks will damage pasture. Will this be fresh water so a spill will not hurt your pasture or more likely carry produced saltwater which will damage your land? You need a very detailed written agreement which protects your land. Talk to others in your area about pricing and ask for new payments every 10 years. A rod is 16.5 feet so price is about $2 per foot.
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Actually $2 per linear foot and ROW will likely be 30 feet wide,
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This will be fresh water and the line will be buried, nevertheless, we have a term that the agreement does not cover damage incurred in the future, and there are to be no trucks driving in. I have tried to get information from others and am having no luck finding anyone paid over $35.00, so I guess that is the going rate. Thanks for your input. It is much appreciated.
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First be sure that fresh water is defined as that is not potable water in the oil and gas world. Second you must be compensated for all future damages. Ask an OK attorney but it may be better to leave silence about future damages than to have them permanently excluded. What if a maintenance truck causes a fire and your pasture burns? Or it hits and kills a cow?
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Thank you for your suggestions.
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