does anyone know what mssp and wdfd wells are?
Jackfork Land is leasing on behalf of Sundance Energy. In their most recent investor presentation it shows a rough idea on where they are leasing (see the Mulhall slide).
This is a little bit outdated and they’ve added quite a bit more acreage since this I believe.
http://www.asx.com.au/asxpdf/20120907/pdf/428kvy33047pbz.pdf
miss. & woodford formation
I had not heard of either up front damages or a rental fee, but I am on the operations side of the pipeline, not the construction side.
Devon is proposing a pipeline easement across the northern boundary of my land. Their proposal was for a easement for 1 or more pipelines. I allowed them to survey the route. They are offering 60 dollars per rod. As I work for a pipeline company, I know a couple of things. First, their price per rod is wayyyyyy low. We are paying 100 to 200 per rod up in Kay county, in a much more rural area. Second, anyone giving an easement needs to ask 100-200 per rod per pipeline, or make the price applicable to one line only, any other pipelines negotiated separately. Also you should require that if the pipeline is ever abandoned, that they remove it. Also no valve stations, pig launchers or compressor stations allowed. Metal post gates to the nearest corner installed. Any trees cut down, bucked up into 2ft lengths, and the smaller branches chipped. Re seeding of the right away in bermudagrass. Crossing creeks or ponds the pipeline should be buried 10ft deep. Just south of us the price per rod (18ft), is much higher. Devon is planning a pipeline along cr 65, and cr 63 at this time. Pass this information along.
They are going to put a pipeline across my property. Offered 100.00 a rod.
They are now up to $150.00 a rod. I will not accept less than 200.00 a rod.
CR 60
2-19-3
Mr brian, Just a heads up but I think the generally accepted length of a rod is 16.5 feet. Be sure not to short yourself. There is some good pipeline information on this site, I particularly like the idea of up front gamages taking property depreciation into account and a yearly rental fee
I tink my mouse malunctioned. A yearly rental fee pegged to the rate of inflation.
Can you elaborate on the up front damages and an example of a reasonable yearly rental fee?
Mr. Brian, I saw you gave some well results in the past. How is the Stephens well doing in 31 17N 3W and any other well results?
Mr. Brian, I own no surface anymore and I’m not a pipeline expert but I have found it interesting to follow what others have posted on this site. The up front damages would be the price per rod you are paid for the temporary and permanent easement and diminished value of your property for having a pipeline across your property. You could also have a yearly rental fee, pegged to the rate of inflation of a reasonable amount. If it were $2,000 a year and the line is in operation for 50 years, that would be an additional $100,000. As much as I have learned about pipelines, the most important thing I have learned is that to maximize the return for allowing a pipline easement, I would get someone with more experience to negotiate it for me. What I have learned here from Buddy Cotten and others may come in handy because I may own surface in the future and I have family members who do and any knowledge I can pick up here will help me determine if the person I find to do the negotiating is doing a good job. I wouldn’t want to negotiate a pipeline agreement any more than I would want to remove my appendix myself. As much as I have learned, I’d probably do better with the appendix.
LOGAN COUNTY SECTION 15, TOWNSHIP 17, RANGE 4 WEST OF
I.M. LEASE NEGOTIATION GRINDS TO HALT
What’s up? Has oil and gas mineral rights activity petered out in Logan County? Nov.5 my sister was informed by the landsman handling her
mineral rights lease offer negotiations that his client had stopped all
leasing in Logan County. Said he was working in a new area and to
contact his office by phone. Said his office did receive her lease with
her requested revisions (some language details not involving compensation-- $602/acre bonus on 28 acres, 3/16th royalty, 3-year lease–) and that they might be able to continue negotiations with her. She and her husband did call and were told another landsman would get back to them but no one from that office has called or emailed them since then. Is it common practice for would-be lessees to withdraw from lease negotiations without formally notifying the party to whom they’ve made an offer?. That’s not nice. (A niece of mine and I hold identical
mineral rights interests as my sister.)
Portia Jane,
I will agree with Robert about all the things to put in the easement.
I have never heard of anyone getting a yearly rental, but I did get upfront damages. Also, they ask for a wide easement, I only gave them a temp easement to built the line, then cut it down in width. Also, I charge by the size of the line, smaller pipelines don’t cost as much as larger ones.
I have found that pipeline companies are always putting a lien with banks, etc, then releasing liens and this goes into your abstract and that cost money to update, so you need to charge a lot.
I told one company to go across the road as I didn’t think they were paying enough, they did go across the road.
Since the land is so dry, grass isn’t going to grow, so you need to put a couple years in your contract for re-establishing of grass in case it doesn’t take off the first year.
Forrest,
Your sister wanted to negotiate what the company offered meaning your sister did not accept their offer. Yes, they pull out without a word. Also, many lease offers anymore state in the cover letter that they are not bound by and can withdraw the lease offer anytime. They have all started moving out of leasing everywhere in Oklahoma and oil prices are set to tumble over the next couple years as tons of oil hits refineries as pipelines come online carrying oil from all the oil plays nationwide just like nat gas did. A weak dollar and Iran is about the only thing propping it up for the time being and over abundant supply will out weigh it.
Mineral Joe, have you figured the Canadian tar sands into that equation? As I understand it the Canadian tar sands could not be produced at a profit if the price of oil fell any lower than it is right now. I think if the price of oil falls and a large part of Canadian oil can not be sold at a profit that will prop prices back up. I have read some interesting things that Saudi Arabia needs the price of oil to stay around $85 per barrel to meet their commitments at present rate of production, if the price drops and SA produces more to earn more they will just be driving the price lower. I wish I could be optimistic that the price of the dollar would strengthen, but I’m just not seeing it. I think the media isn’t sensationalizing the middle east as they have done in the past because I don’t think we are going to play policeman this time. Syria has shelled Israeli territory and Turkish territory and both countries have retaliated, how long this tempering of response will last is beyond my knowledge. The civil war in Syria goes on. It seems that Iran will always be with us, at least until they really do get the kind of weapons they desire. I wish all of the pipelines were completed, I think we have as a nation been selling oil internationally and that we could sell more. I have heard that much of our refining capacity is designed to process heavy crude much of which we import. If we could move our light sweet to where it could be loaded on ships and sent to Europe where we could get Brent crude price I think we could see even more drilling. I have a friend and his oil from Williams county ND is very light sweet oil and it goes to Lousiana by rail and he received $110 a barrel for September’s oil. I think the pipelines could cut both ways or be neutral. I heard something awhile back about selling natural gas to Japan which would currently bring a good price but I knew it was a pipe dream because the infrastructure to sell the gas to Japan does not currently exist and Japan will not wait until it does to find the solutions to it’s energy problem with so much of their nuclear capacity lost. If the pipelines had been in place it could have been a great shot in the arm to our domestic natural gas producers. I have noted that when the price of oil drops the production from my wells drops also by about 50%. I think many domestic operators are sensitive to the overproduction issue. There are about 100 less rigs operating in ND than there was at the peak. I don’t think the domestic operators are looking to drive themselves out of business. In my opinion I think we are like a becalmed sailing ship and that we will just wallow where we are with nothing much happening short of a new war or government taxing domestic production out of existance. Just my opinion and I’m sure that everybody has one, based on the data that they are aware of. It would be great if my best guess turned out to be pessimistic.
how much are they paying for well site, do they pay you for water when a water well is drilled,
r w,
As of Nov 20 2012 Million dollar way is reporting rig count down 37 from the peak count, hard to tell if it is just rigs down due to moving to another location and I believe more have moved over to the Montana side of Bakken. Most of the oil has been coming to Cushing as it has for many years but now at a faster rate so they have been getting close to full and from what they say the reversal of pipelines to Texas and La refineries has only been able to keep up with incoming but new pipelines are due to come online next year. We as a nation use far more than we produce so if we are exporting it, it could only be from what we import so I don’t understand the comment of export unless your speaking gasoline and other refined products which we do export on an increasing level. I don’t foresee the dollar index increasing in value either. I find it hard to believe that an operator predicts oil futures and lowers and raises production levels accordingly, if prices stayed down say for 1 or 2 years would they never bring production back up for those years, doesn’t make sense and if prices went down even further after a year then they would have lost a lot of revenue if it stays down or goes lower. I don’t know of anyone who can make accurate predictions consistently. As for wallowing around where we are, we or our government is spending (borrowing or printing same thing) tons, trillions of dollars to keep us wallowing around where we are, what’s going to happen when they stop and we have to pay it back. Our government gave a lot of it away to people at record low interest rates, all this will come back to haunt us. In the oil and gas business it is always boom and bust and to think the operators have learned how to navigate thru over and under supply worldwide is something I have little faith in and hope you are correct in that they will all work together and control production levels, I think it would be a miracle. Production levels worldwide are rising much faster than demand. They have invested so much in oil sands they can not just walk away, I believe prices would need to fall way below cost for oil sands operators and SA to cut way back. By the time we are set up to use nat gas for transportation here and build LNG plants to export we’ll be short and another nat gas boom will hit. I would rather pay the price to import and use others resources and preserve more of ours for the future, but it’s like a race to see who can run out first, even though I believe beneath the oceans are more than one could believe. Everything in the world is boom and bust, it’s human nature, greed. Recent accounts are over building in the housing market, over spending in Greece, nat gas prices, the stock market, to think oil activity will be different would surprise me and go against nature, human nature.
I talk to people and they don’t know where to invest or put their money, land, oil, cash, none sound very good and our government is unpredictable except that they love to give out to any and everyone money we don’t have. They don’t know how to run a business except into the ground. Special interest and lobbyist should be banned for the bribery it is. I don’t vote though since my vote or popular vote doesn’t count so I have no right to complain some say. Electoral votes are a heist of my rights as an American. This is where to post rants and raves isn’t it. As for printing presses, Ben thinks everything is going to take off and he can pull it all back in, nothing is ever that simple.
Mineral Joe,
When you figure out where to put money, please let me know. I would spent it, but I already have to much stuff to walk over. I don’t think any one that is old will have to worry as the government will take everything over one million at 55%, won’t be leaving much to worry about.
I hate to think what the next 4 years will be, but I don’t think farming or oil business will be the place to be. Most of central Oklahoma will be a dust bowl if it doesn’t rain. Without water, oil companies can’t drill even if the prices are good. East coast is washing away and the west coast may fall off anything. Maybe it nice that I’m old and don’t have to worry much longer.
Joe, I could be mistaken but I thought the alltime high for ND rig count was 285. Could be the MDW was for this year, or I could have been way off base. Good point about the printing presses rolling. I believe that soon or late the government is going to really devalue the currency and pay the national debt. Of course if they go back to business as usual afterwards it will just be a short respite, but in theory it could work. Germany redeemed all the East German marks for West German marks and their currency recovered but our government has no discipline. Things could get alot worse before they get better, hoping they do get better, I know it’s not a forgone conclusion.