I purchased surface only property in Texas (100+ acre) about 3 years ago which is part of a producing oil lease. I'm on the outlying portion of the field. On my property is a well that is no longer being pumped, but is used as an injection well for the field. There is also another well on the property that has a pump jack, but was shut down 2 years ago because the well was making too much water. The oil co. has not decided what to do about that one long term, but have considered doing some type of rework eventually. So there are no producing wells on my property right now.
There is an existing saltwater line running across my property to another lease down the road which is operated by the same Oil Co. I'm pretty sure they are running through the line across my property, and are injecting some of the saltwater from this lease into that one to help production. They are also putting some of the saltwater back into an old well located on my property.
My question is:
1. Should I be getting anything for the saltwater being injected in the old well on my property? If so, how much?
2. What would be a reasonable amount to ask for the 2400' long easement for the 4" line that runs across my property?
3. Am I likely to upset anyone at the oil co by asking for some compensation? We have been on friendly terms since I arrived on the scene, and I don't want to spoil that.
-rc
Patrick-
You need to check title for the agreements the prior surface owners signed. For example, if a prior owner owned both surface and minerals, and signed an oil lease that gave them the power to put in injection wells, you may be burdened with that lease. Also, look at the deed when you bought the property. It probably said you were accepting it subject to all easements, etc. of record.
Mineral deeds "trump" surface use. If the O&G lease does not address questions 1 and 2, and I'm no mineral's manager, but I think you may be out of luck. Wait, I don't think it's luck ... I think you may be out of negotiating power.
Re: question 3 ... Get Real!
Good luck,
Pat
The prior owner did own both surface and a portion of the mineral rights. When we originally researched the property there were no easements filed in the county records, so I don't think the water line is a recorded easement.
Wade Caldwell said:
Patrick-
You need to check title for the agreements the prior surface owners signed. For example, if a prior owner owned both surface and minerals, and signed an oil lease that gave them the power to put in injection wells, you may be burdened with that lease. Also, look at the deed when you bought the property. It probably said you were accepting it subject to all easements, etc. of record.
I understand the mineral deed "trumps" surface use, but I don't see how surface use of my property can extend to wells on a completely separate mineral lease down the road.
I'm also not clear on surface use of my property in support of wells that are not on my property (even though part of the same mineral lease).
-rc
Ms. Pat Malone said:
Mineral deeds "trump" surface use. If the O&G lease does not address questions 1 and 2, and I'm no mineral's manager, but I think you may be out of luck. Wait, I don't think it's luck ... I think you may be out of negotiating power.
Re: question 3 ... Get Real!
Good luck,
Pat
Does anyone have a copy of an easement agreement for a salt water line that they would be willing to share? I'm making some progress on this, but would like to look over an example of an agreement since I will want to include some "in the event of spill" cleanup language, etc. in the agreement.
I did get the easement worked out with the operator who was down the road, and is taking on some of the produced water from the wells that are part of the mineral lease on my property.
After some back and forth, I’m basically getting ~$4/rod per year including up front payment for 3 years he had been doing this without my knowledge or permission. I have not received or signed the final paperwork yet, but have fairly strong remediation requirements specified in case of a spill.