My family owns the surface rights and 1/4 mineral rights on a 53 acre property in Hopkins County. One of the oil companies have come in and built a well which is now operational. Few months ago, a representative from the Oil Company came and said they would reimburse the family for damages to the surface since the pad and road will take away from the annual hay crop. Currently there is about 3-5 acres where the oil well is located not to mention the gravel road that was built. Can someone give me an idea of what is reasonable cost of reimbursement? Also, if they are using our ground water, does that get included in the reimbursement? What are the general topics taken into consideration for negotiating this reimbursement. Thank you.
There are a lot of potential answers to your questions. Was your lease prepared by a professional? If you are a surface owner and a mineral owner, the time to address the surface use is at the time of lease execution.
As to hay, multiply your yeild per acre times your net revenue per bale times average crops per year to get a one year minimum damage rate.
The average lease provides damage for growing crops and timber and does not take into account taking acreage out of production.
Most farm raised boys who are in this business can write volumes about this subject.
Buddy Cotten
Thanks Buddy for the insight. Being novice on this subject, it is all very overwhelming.
1) Surface damages should pay between $5-6 to 8K. It is a courtesy, it is not legally required.
2) Groundwater goes with the surface and is paid by the amount taken from, install a system that measures.
3)Initiate a surface damage agreement. What county and what state are you in?
Call 432-620-8700 next week to Ask the Permianlandgirl Radio show to ask any questions kwel.com We answer such questions and dialogue with mineral and surface owners. permianlandgirl.org
1. Is that rate per acre, per square foot, per pad? If the terms are contained in the lease, it is not a courtesy, it is an obligation.
2. Without any lease provision to the contrary, the operator has the reasonable right to use water in its operations ON THAT LEASE, or lands pooled therewith.
3. He is in Texas, per his webpage.
Your webpage is wrong. "No grease without the lease." Not "You cannot get the lease without the grease." unless the Anon scrivner was dyslexic.
I have lots of questions. Exactly when can I call into the show for answers?
Development Res Inc said:
1) Surface damages should pay between $5-6 to 8K. It is a courtesy, it is not legally required.
2) Groundwater goes with the surface and is paid by the amount taken from, install a system that measures.
3)Initiate a surface damage agreement. What county and what state are you in?
Call 432-620-8700 next week to Ask the Permianlandgirl Radio show to ask any questions kwel.com We answer such questions and dialogue with mineral and surface owners. permianlandgirl.org
Buddy:
Well said. If it ain't in the lease you ain't got it and ain't gonna get it and if it is in the lease you may have hell getting it!
Buddy Cotten said:
1. Is that rate per acre, per square foot, per pad? If the terms are contained in the lease, it is not a courtesy, it is an obligation.
2. Without any lease provision to the contrary, the operator has the reasonable right to use water in its operations ON THAT LEASE, or lands pooled therewith.
3. He is in Texas, per his webpage.
Your webpage is wrong. "No grease without the lease." Not "You cannot get the lease without the grease." unless the Anon scrivner was dyslexic.
I have lots of questions. Exactly when can I call into the show for answers?
Development Res Inc said:1) Surface damages should pay between $5-6 to 8K. It is a courtesy, it is not legally required.
2) Groundwater goes with the surface and is paid by the amount taken from, install a system that measures.
3)Initiate a surface damage agreement. What county and what state are you in?
Call 432-620-8700 next week to Ask the Permianlandgirl Radio show to ask any questions kwel.com We answer such questions and dialogue with mineral and surface owners. permianlandgirl.org
The property is in Hopkins County, Texas. There is a OGL with a Freestone Ryder(??). In a meeting a couple of months ago which we viewed the location of the well (which just went into production in January), the landman said he would be getting back to us on the damage settlement. There is also a "pit reclamation agreement" that an amount was agreed upon but no payment made yet.
My mom owned the property but shared mineral rights with her three other siblings which has been handed down to our cousins and us. (Total of four families with shared mineral rights). The oil company had approached the families about the mineral rights and all our cousins signed first and we did since we were told if you do not sign, then the cousins would get all the royalties and no share to us. Our main concern was basically to ensure that the farmland was not totally destroyed.
It sounds like the landman lied to you, since you have a location on your property.
It flies all over me when the little guy gets taken advantage of.
T Valley said:
The property is in Hopkins County, Texas. There is a OGL with a Freestone Ryder(??). In a meeting a couple of months ago which we viewed the location of the well (which just went into production in January), the landman said he would be getting back to us on the damage settlement. There is also a “pit reclamation agreement” that an amount was agreed upon but no payment made yet.
My mom owned the property but shared mineral rights with her three other siblings which has been handed down to our cousins and us. (Total of four families with shared mineral rights). The oil company had approached the families about the mineral rights and all our cousins signed first and we did since we were told if you do not sign, then the cousins would get all the royalties and no share to us. Our main concern was basically to ensure that the farmland was not totally destroyed.