Easements and Well Pads

Anyone know what the going rate is for an easement offered by Tesla and an Oil pad bid by BHP Billington go for? Land is in Reeves County section 28. Thanks.

What size of pipe are they putting in? As to the well pad, it depends on whether they have the right to drill at that location.

BHP Billington has the right to drill. They leased from us in 2016. Now they are offering $$$ for well pad and facility pad.

The agreement with Tesla (Grand Prix pipeline) just says permanent easement and ROW agreement. I see no mention of size of the pipe.

Rick, as Mr. Cotten said, you definitely need to know the diameter of pipe Targa plans on installing and if they'll have the right to re-enter said Right of Way to install more lines in the future or not. It's also crucial you find out the length of pipe or number of rods they plan on laying through your property, that would help us get a better ballpark of compensation. In your post in the Reeves Group, you had said BHP is offering $22k for the pad, I think that seems like a fair offer considering they have the right to drill.

Thanks for correcting me SouthTex, I meant Targa. I'll definitely find that information you provided out before anything is signed! Thanks.

A poster on another thread here suggested we look at the University Of Texas Land Fee Schedule. Heres a link. I found the site quite informative:


O.K. Now Targa is telling us that the 7965.00 one time flat fee has to be split between 11 parties. Is that fair? Doesn't sound like it to me that's like 700 bucks apiece. Why bother getting everything notarized and mailed back off? Why expend any effort at all? Am frustrated.

Hello South Tex...the pipe is 12". According to the representative from Targa. 79.65 rods are being used. It's 36" below the surface.


This can be answered better by an expert like Buddy Cotton; but, IMO, that pipeline money as well as the negotiating is for the surface owners where the damage and mess is located, not just the mineral owners. If all 11 parties are equal partners in the surface, then the sharing makes sense, otherwise it makes no sense. Remember that pipelines are normally for now and forever and the surface owner is the one that has to contend with this mess.

Now Targa is saying our proportionate share of the 7965.00 amounts to 221.00. Targa has graciously offered a flat fee of 500 to solely go to us to sign the agreements. More will be revealed...

Now BHP Billington wants to use the same acreage for their own easement and ROW. They are offering another 450.00 solely in our pocket. Can anyone tell me if a well has been spud or permitted for section 28. The documents show a state 28 well as being permitted. The property legal description is section 28 Block 57 T&P RR CO. Survey. We will probably ask for a flat 500 like we did with TARGA. Not much $$$ for an easement and ROW.