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.
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?
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.