Offer on Surface -- near West Quito oilfield


#1

I have recently received a purchase offer (from an oil company) on undivided surface property at $2000/acre. There is current production on the property, with associated easements. While I receive constant offers to purchase my minerals, I have never had an offer for the surface (land not usable even for grazing). Can anyone help me determine how to best research this – i.e., what are the pitfalls of selling the surface while active production is underway, how much is a reasonable offer, who could best advice (real estate agent or attorney), any other advice? Thanks in advance.


#2

That seems REALLY low . I’ve heard of people around Pecos selling land for 25-30k per acre


#3

Thank you for that initial info. Do you have a suggestion on how I should start researching this further? Is an oil/gas attorney or area real estate agent the best source? And, can you share info on how I might investigate whether an oil company surface owner might create other issues for a different mineral producer? This is the only mineral property that I own that also includes the surface.


#4

Surface adjacent to City of Pecos has become valuable because city population has increased. Hotels and restaurants are being built. It is not the same for surface in field with no water or electricity. Or even in Town of Barstow in Ward County. If you post the location, you will get more informed responses. Oil company will want for use with respect to well operations, disposal well, types of uses.


#5

Thanks for clarifying. It certainly makes sense. I am still trying to decipher some county maps. What I do know is that the location is Block 1, Section 19. I THINK it may be off CR 149.


#6
  1. Go to RRC website - GIS map viewer.
  2. Select Ward County
  3. Search along top - Select Survey and enter Block 1, Section 19 and on the list select A-329 (Abstract 329)
  4. Then you can ask to identity wells - When you click on green dot, the well info will appear.
  5. On 4 squares at top - Switch base map to Imagery to see the surface. The surface is not close to any home or other developments and the value is for oil and gas operations. Value depends on the spot where your surface is located and how large the tract is. Is this all or only part of your surface? Is it a good spot for a well location - then consider the University Lands rate and damage schedule of $3,600 per acre for a well location. If the purchaser puts a well, disposal well, collection facility on the tract and you own surrounding surface, then you can collect damages for pipelines running through the remaining surface. Do you own 100% or only a fraction of the surface? If the purchaser is buying from others and you will be a co-owner, then you will have more trouble collecting damages for use by the purchaser.