Right to use road fees--McKenzie County--North Dakota

General Mineral Rights Discussion
1

I have been leased to an oil company for the last couple of years. I have reason to believe they will be using our road (which is on the leased land) to go to the drill site for a well that will be drilled on our land. I know they pay damages for the drill site but is it customary for them to pay me a fee for use of the road also?

Thanks for any advice.

Terry

2

Yes. Is your road all weather?

I change $1.00 per linear foot for road use and require an all weather road.

3

Buddy,

It was actually a road built by another company 6 years ago to get to a well site on someone else's property. The road was 388 rods and I wouldn't neccessarily call it an all weather road. It's only 15 feet wide with scoria for surfacing. I would assume they would widen it, provided they get a producing well.

The damage agreement for the road I had with the other company specifically says the road is to be used only to go the well that was drilled 6 years ago and has been on TA status for over 2 years. The company that now may want to use the road bought the previous company about 2 1/2 years ago. My attorney says the agreement would have to be honored by todays company.

As long as they are drilling on my land I don't want to offer too much resistance but would like whatever fee is reasonable.

Is the $1.00 per linear foot a one time deal or is it to be paid yearly?

4

Dear Terry,

I set it up as a one time charge for a single well - not a single well pad. Eco pads create additional traffic on your property for which you should be compensated.

5

Terry:

Don't forget to include everything on your property which might be damaged due to oilfield traffic. An example is a cattle guard, which often is damaged due to heavy workover rigs and also fencing at the entrance which is sometimes knocked down.

6

Hi Terry,

Is Chesapeake doing the drilling? I have a friend who had 6 wells drilled in a 40' circle on his land. Not only did Chesapeake build an all weather heavy duty road, they also refinished the road leading to his house. If the road leading to his house needs refinishing they come and do it. One thing to remember though. You have to be nice to them and most likely they will be nice in return. Nobody wants to deal with a grouch.

Wes Luke