I have some acreage in Carrizo Springs, Texas in the Eagle Ford Shale play area. I received a request for a permit to conduct a geophysical survey. It is suspicious to me…25 acre and no time table. I live in Alabama and do not know what is going on with my property. Any advice would be appreciated. It looks like I need to hire a lawyer!
This raises many questions. I assume you have been offered $25.00 per acre for a 3-D seismic shoot. This may entail dynamite or thumper trucks depending on the terrain. If you have improved pastures or valuable trees this may entail provisions for additional damages. If it is just brush country then this may not be necessary. The Eagle Ford Play is the hot new play these days in Texas. Do you currently have a mineral lease on your mineral interests? It is preferable to have a mineral lease prior to allowing a seismic survey. The rational for this is why would you want Operator’s to “peak” at your mineral property prior to leasing? If the seismic is not favorable then you would potentially lose out on an opportunity to lease and get a nice bonus payment. If you currently have a mineral lease, then yes, I would approve the seismic permit. The seismic permits I have approved have been usually for a one year term. $25.00 per acre has been the norm in the Gulf Coast region for 3-D seismic. This was a few years ago though.
Mike Igau said:
This raises many questions. I assume you have been offered $25.00 per acre for a 3-D seismic shoot. This may entail dynamite or thumper trucks depending on the terrain. If you have improved pastures or valuable trees this may entail provisions for additional damages. If it is just brush country then this may not be necessary. The Eagle Ford Play is the hot new play these days in Texas. Do you currently have a mineral lease on your mineral interests? It is preferable to have a mineral lease prior to allowing a seismic survey. The rational for this is why would you want Operator’s to “peak” at your mineral property prior to leasing? If the seismic is not favorable then you would potentially lose out on an opportunity to lease and get a nice bonus payment. If you currently have a mineral lease, then yes, I would approve the seismic permit. The seismic permits I have approved have been usually for a one year term. $25.00 per acre has been the norm in the Gulf Coast region for 3-D seismic. This was a few years ago though.
I do have mineral rights for this acreage; however my property is landocked. Also, I do not have a mineral lease and that is why I am suspicious about the permit. I agree with you that I need to have a mineral lease first. I will deny the permit at this point
Thanks so much for responding to my inquiry. My gut was telling me not to sign the permit, but I am clueless about all of this.
God Bless You!
Lynn McFarling Hicks said:
Mike Igau said:This raises many questions. I assume you have been offered $25.00 per acre for a 3-D seismic shoot. This may entail dynamite or thumper trucks depending on the terrain. If you have improved pastures or valuable trees this may entail provisions for additional damages. If it is just brush country then this may not be necessary. The Eagle Ford Play is the hot new play these days in Texas. Do you currently have a mineral lease on your mineral interests? It is preferable to have a mineral lease prior to allowing a seismic survey. The rational for this is why would you want Operator’s to “peak” at your mineral property prior to leasing? If the seismic is not favorable then you would potentially lose out on an opportunity to lease and get a nice bonus payment. If you currently have a mineral lease, then yes, I would approve the seismic permit. The seismic permits I have approved have been usually for a one year term. $25.00 per acre has been the norm in the Gulf Coast region for 3-D seismic. This was a few years ago though.
Dear Ms. Hicks,
One of the more important issues revolves around how many mineral acres do you own and are they full or partial interest? If you own no mineral acres and surface only, then you may have little recourse if the seismic company has any mineral interest under your surface permitted or leased. The mineral estate, being the dominant estate in Texas, will be able to conduct its operations on the surface without your consent.
For an example, if you only own a portion of the minerals, the seismic company needs only permit (or lease) another undivided mineral interest owner and your mineral estate will be evaluated, without a lease from you, without your permit, without a payment of any type being made to you.
If your land were under an oil and gas lease, the company would not be coming to you for a geophysical mineral permit. The “typical” oil and gas lease in Texas provides that you grant broad exploration rights, including the right and privilege to shoot seismic. Only the most sophisticated landowners can command an oil and gas lease that retains that right to the mineral owner.
On another example, if you own a full mineral interest in only 40 acres, the seismic company can shoot around you and infer the geology under your land. Many seismic operators have no problem with leaving out a 40 acre tract. They will stack shot points on the property line and get the data anyway. By the way, seismic vibrations on your property have been held in Texas courts to NOT be trespass. Only physical trespass counts.
With a little more information shared by you as to the type of ownership you enjoy and its magnitude, you might well receive different recommendations.
I will many times take a contrarian view of geophysical exploration as it relates to landowners hopes and desires. Some pundits will say to never grant a permit, only a lease. If that were the case, and all landowners followed that mantra, then a 3-D shoot would never occur. The expense of LEASING a 250 sq mile 3D shoot is just prohibitive.
I always suggest to my clients that the benefit is in encouraging exploration, since the real money and benefit lies in production – not in a seismic permit, not in a bonus payment, but the exploitation of mineral assets.
Thanks for your response. This website has been very helpful to me.
Buddy Cotten said:
Dear Ms. Hicks,
One of the more important issues revolves around how many mineral acres do you own and are they full or partial interest? If you own no mineral acres and surface only, then you may have little recourse if the seismic company has any mineral interest under your surface permitted or leased. The mineral estate, being the dominant estate in Texas, will be able to conduct its operations on the surface without your consent.
For an example, if you only own a portion of the minerals, the seismic company needs only permit (or lease) another undivided mineral interest owner and your mineral estate will be evaluated, without a lease from you, without your permit, without a payment of any type being made to you.
If your land were under an oil and gas lease, the company would not be coming to you for a geophysical mineral permit. The “typical” oil and gas lease in Texas provides that you grant broad exploration rights, including the right and privilege to shoot seismic. Only the most sophisticated landowners can command an oil and gas lease that retains that right to the mineral owner.
On another example, if you own a full mineral interest in only 40 acres, the seismic company can shoot around you and infer the geology under your land. Many seismic operators have no problem with leaving out a 40 acre tract. They will stack shot points on the property line and get the data anyway. By the way, seismic vibrations on your property have been held in Texas courts to NOT be trespass. Only physical trespass counts.
With a little more information shared by you as to the type of ownership you enjoy and its magnitude, you might well receive different recommendations.
I will many times take a contrarian view of geophysical exploration as it relates to landowners hopes and desires. Some pundits will say to never grant a permit, only a lease. If that were the case, and all landowners followed that mantra, then a 3-D shoot would never occur. The expense of LEASING a 250 sq mile 3D shoot is just prohibitive.
I always suggest to my clients that the benefit is in encouraging exploration, since the real money and benefit lies in production – not in a seismic permit, not in a bonus payment, but the exploitation of mineral assets.
Mr. Cotten- My parents have 60 acres in Sullivan Cty PA and have signed a seismic permit request, only to regret it very quickly. They have not signed a gas lease at this point and are not sure they will be doing so. What will happen if they inform the company-Geokinetics, that they no longer agree to the testing? Will the company sue them, even though there is no actual loss to the company of time, expense, at this point? They said the agent lead them to believe the agreement was not legally binding since it did not require notarization…Would an alternative be some sort of addendum addressing notice of start time, repair of surface damage, etc? Any advice re how to proceed would be greatly appreciated!
Buddy Cotten said:
Dear Ms. Hicks,
One of the more important issues revolves around how many mineral acres do you own and are they full or partial interest? If you own no mineral acres and surface only, then you may have little recourse if the seismic company has any mineral interest under your surface permitted or leased. The mineral estate, being the dominant estate in Texas, will be able to conduct its operations on the surface without your consent.
For an example, if you only own a portion of the minerals, the seismic company needs only permit (or lease) another undivided mineral interest owner and your mineral estate will be evaluated, without a lease from you, without your permit, without a payment of any type being made to you.
If your land were under an oil and gas lease, the company would not be coming to you for a geophysical mineral permit. The “typical” oil and gas lease in Texas provides that you grant broad exploration rights, including the right and privilege to shoot seismic. Only the most sophisticated landowners can command an oil and gas lease that retains that right to the mineral owner.
On another example, if you own a full mineral interest in only 40 acres, the seismic company can shoot around you and infer the geology under your land. Many seismic operators have no problem with leaving out a 40 acre tract. They will stack shot points on the property line and get the data anyway. By the way, seismic vibrations on your property have been held in Texas courts to NOT be trespass. Only physical trespass counts.
With a little more information shared by you as to the type of ownership you enjoy and its magnitude, you might well receive different recommendations.
I will many times take a contrarian view of geophysical exploration as it relates to landowners hopes and desires. Some pundits will say to never grant a permit, only a lease. If that were the case, and all landowners followed that mantra, then a 3-D shoot would never occur. The expense of LEASING a 250 sq mile 3D shoot is just prohibitive.
I always suggest to my clients that the benefit is in encouraging exploration, since the real money and benefit lies in production – not in a seismic permit, not in a bonus payment, but the exploitation of mineral assets.
Best,
Buddy Cotten
www.cottenoilproperties.com
Dear Ms. Calvert,
Was consideration passed? Also, it would be very helpful if you could scan and post the permit itself.
TERRI CALVERT said:
Mr. Cotten- My parents have 60 acres in Sullivan Cty PA and have signed a seismic permit request, only to regret it very quickly. They have not signed a gas lease at this point and are not sure they will be doing so. What will happen if they inform the company-Geokinetics, that they no longer agree to the testing? Will the company sue them, even though there is no actual loss to the company of time, expense, at this point? They said the agent lead them to believe the agreement was not legally binding since it did not require notarization…Would an alternative be some sort of addendum addressing notice of start time, repair of surface damage, etc? Any advice re how to proceed would be greatly appreciated!
what do you mean by consideration? my scanner is acting up since i installed new OS…will try again to upload permit copy…
Dear Ms. Calvert,
Consideration is value passed to enter into a contract. Most of the time consideration is money. It could be love and affection, but I like money best. No consideration, no contract.
TERRI CALVERT said:
what do you mean by consideration? my scanner is acting up since i installed new OS…will try again to upload permit copy…
the agreement calls for $307.90 to be paid, but not until " the property is crossed". it states " In the event of cancellation of the seismic work described above, or if the property is not crossed, this contract is null and void and payment will not be due." Can I email you the copy of contract rather than posting it here?
Ms. Calvert: I would have told this outfit to take a hike. They are offering 5 bucks an acre. If you have already signed the permit fee agreement then you may be out of luck on renegotiating or refusing to allow seismic surveying on your property. That is hardly enough for surface damages of any kind. These days in Texas the seismic permit fees are in the 15-25 buck per acre range. I also would never sign an agreement that is contingent on whether or not they will conduct a seismic survey. I just reviewed a seismic permit we granted in 2007. It is four pages long and has many provisions that the Permittee must abide by. We require compensation per acre whether or not they conduct a survey, additional provisions for possible damages to fencing, water wells, trees, croplands, roads and other improvements, a one year term to survey, waiver of liability or indemnity clause, proof of general liability insurance, environmental hazards and much more. Obviously we have an oil and gas attorney that prepares these documents. This may not be cost effective for a lot of folks but this is why a surface owner has to be very careful and detail the liability and damages issues to protect their interests and property.
TERRI CALVERT said:
the agreement calls for $307.90 to be paid, but not until " the property is crossed". it states " In the event of cancellation of the seismic work described above, or if the property is not crossed, this contract is null and void and payment will not be due." Can I email you the copy of contract rather than posting it here?
I googled “permit to conduct geophysical survey”, since my friend handed me a letter he got in the mail today with two papers requesting his signature to permit this to be done on his property. They offered no compensation, nor does he have a lease with anyone, so I am glad my google lead me to this forum! lol All the enclosed documents and letter has PGS Onshore letterhead, but the return envelope was addressed to Cougar Land Services, LLC. Another company keeps sending him letters about a lease, but it is one of those middlemen outfits where they resale the lease or whatever it is they do with them. They are not the drilling & gas companies that are up in our area. (Washington County, PA) Thanks for this forum and website it has a lot of valuable information since they are after my son now to sign. He has three tracts of land so I will pass the information on to him that I have found on here and have him come over and review it with me…thanks again…
Mike Igau said:
This raises many questions. I assume you have been offered $25.00 per acre for a 3-D seismic shoot. This may entail dynamite or thumper trucks depending on the terrain. If you have improved pastures or valuable trees this may entail provisions for additional damages. If it is just brush country then this may not be necessary. The Eagle Ford Play is the hot new play these days in Texas. Do you currently have a mineral lease on your mineral interests? It is preferable to have a mineral lease prior to allowing a seismic survey. The rational for this is why would you want Operator’s to “peak” at your mineral property prior to leasing? If the seismic is not favorable then you would potentially lose out on an opportunity to lease and get a nice bonus payment. If you currently have a mineral lease, then yes, I would approve the seismic permit. The seismic permits I have approved have been usually for a one year term. $25.00 per acre has been the norm in the Gulf Coast region for 3-D seismic. This was a few years ago though.
Mr. Cotton:
I live in Missouri and have 167 Acres. This property was a steam assisted oil field in the late 70's and early 80's. I was approached to lease the property again, but; could not come to terms. The property and mineral rights have not been leased since the 80's lease expired. I came home one afternoon this summer to find a helicopter with a long boom suspended under it flying a pattern over my and others property. When possible on my property they flew the boom approximately 20 feet off the ground, but; at no point did I witness them make contact. I just witnessed them drop the altitude over my ground near the old oil field. The name on the boom was Resolve. We have shallow heavy oil here that exists between 200 to 300 foot deep. I know this information from the State of Missouri records kept on the operation that was here. The thickness of the heavy oil ranges to 100 foot and the base or end of the deposit seems to run a consistent 300 feet deep. We have two heavy oil steam operations running within three and five miles of us operated by MegaWest out of Canada. I have asked one of the MegaWest project supervisors if they were responsible and the answer was no. Were my property rights violated in the absents of any agreements being signed?
Has anyone in Garfield County, Okla received a letter requesting a Permit toConduct Geophysical survey on their property. If so what per acre rate in compensation was being offered? Does any one know what the going rate should be in 2014? I know that pipelines have imminent domain rights in Okla, do geophysical surveyors working on behalf of an oil company have the same rights?
Anyone out there that has some experience with this a reply would be greatly appreciated.
Best regards,
Shan
I am not in Garfield county but in Canadian county...I personally amended several things to the contract and signed for $10 an acre plus $10 prepaid damages. It took a bit of time for them to agree to this but from what I have heard from others in my area they only got $10 with damages included. Some of the things I added...one year from date of signing to conduct survey, if damages exceed $10 acer they will compensate, contractor agrees to indemnify and hold harmless owner ,ect
I received a request for a Sesmic 3D survey for Canadian Cty OK. However, I just own the mineral rights and do not own the land itself.
From this discussion it doesn't seem as if I have a concern. Especially since I recently did a 3 yr lease on these minerals?
Any thoughts? I don't see a down side except if they don't find anything positive in the survey -??
Chuck