Oil company wants to put water line on my property

An oil company is drilling several wells a mile North of my property and wants to lay the line about 2 acres on my property…they are offering $500. Is that a good offer?

Dear Ms. Walker,

We need a bit more information, such as:

How long the water line will be there.

How many rods does it cover.

Is the line going to be buried (probably not).

And so forth.


Buddy Cotten

No that is not a good offer. You may be in a very good position to bargain for everything from price, terms, perhaps even an overriding royalty interest if you play your cards right.

Thanks for the reply. I just received the contract which does not list the time frame. Also, what is a rod?

I appreciate your time and expertise

Thanks for the reply. How much of an override would you suggest?

Thanks again

I would ask for 3% of 8/8 & negotiate from there. I imagine however, that the company would much rather pay a set fee.

Especially since this is a 2 acre tract that they could go around.