Hello, I’m seeking novice information. I was approached by a pipeline company wanting to rent 5 acres of my land for a company yard on a monthly basis. Raw land is cleared, gated, and fenced with no buildings or utilities. Frac tank company wants 1 acre of land to store 14 frac tanks and sell skim oil. I have no idea as to what to charge. Can somebody please guide me? Thanks in advance!
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You need to get detailed information in writing about this proposal. Why would they want to rent on a month-to-month basis? These do not sound like idle temporary storage of unused equipment. How are they defining “frac tank”? To sell skim oil, the tanks would take in produced water and let it settle to skim off the oil separates. Or are they bringing in frac fluids and separating the oil? That is a business operation, not simple storage. How are they disposing of the produced water or frac fluid after separation? Will this be delivered into and out of the 5 acres by trucks or by pipeline (whether permanent or temporary)? What if there is a spill and need a clean-up which covers all costs and environmental liabilities on the 1 acre and the 5 acres? Also, so you are covered for any injuries to third parties. You need a serious written legal agreement to cover this, not a handshake or simple agreement.
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Thank you for your info. There is a lot of information I had not even processed. The month-to-month rent is only for the pipeline company. The skim oil will be hauled into the temporary storage tanks then hauled out to market, I believe.
You can do it very simply.
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