Dewitt County - got a call yesterday from an Oil and Gas Company who will be putting in a well behind our property and they want to put in a road that runs right through our property (basically splitting it in half). I know there will be an entrance off the main road onto pur property and an exit onto the property behind us where they are drilling. We run livestock (cattle, horses). What do I need to be concerned about? Are there concessions I should ask for?
Help and Thanks!
Jen
For some people, roads can be a good thing if it improves access. I would make sure they put in a cattleguard.
If they are putting in gates, make sure you are provided not only a key, but also full access to use the road.
On the other hand, if the road is an inconvenience, and you really do not want a road, I believe you have some options. Truck traffic, etc could be a negative.
In any case, you may be able to receive a "damages" payment.
Without knowing more about whether your property and mineral situation, these are some things you can consider.
Jennifer:
In regards to the building of this road, several things have to be taken into consideration. I would first request the oil company to erect new gates (unless the gates currently on the property are sufficient). Keep in mind, trucks will be entering the property so the width of the entrance is very important. Also, I would insist on a paved road to the wellsite as during the wet months, a dirt road will turn into muddy situation fast especially if heavy trucks frequent the location. Keep in mind, gravel or some base material would suffice in this situation. Further, an agreement between you and the operator should be in writing addressing any pollution problems along this roadway. In this written agreement, you might want to include the maintenance of this road as some operators allow their access to become aged and worn. As stated above, you might want to request signs on the property regarding cattle, etc. which would be impacted by this road.
I would consult a local attorney and see what is going on in your area. I sent you a private message about that.
I definity would go with the cattleguard as they will not like opening and closing gates, and i doubt they will chase your cattle back in.
Jennifer,
Think about, list and then fairly evaluate every inconvenience you will suffer due to a road being on your property including the loss of revenue for the acreage used by the road. If you can, put dollar figures on each item per year. If they get a good well, the operator will be willing to pay a fair amount for access. Perhaps an annual or semi annual access fee that covers your loss of revenue and inconvenience. Make certain that the access fee is subject to the cost of inflation every 3 years or so. If you have a mortgage, you may need to get a subordination agreement from the bank. (another inconvenience for you to suffer)
I had a company tell me that since they were spending so much money putting me in a nice road that I shouldn't charge them for damages! What is a customary amount for road damages?
Gary L. Hutchinson said:
Jennifer,
Think about, list and then fairly evaluate every inconvenience you will suffer due to a road being on your property including the loss of revenue for the acreage used by the road. If you can, put dollar figures on each item per year. If they get a good well, the operator will be willing to pay a fair amount for access. Perhaps an annual or semi annual access fee that covers your loss of revenue and inconvenience. Make certain that the access fee is subject to the cost of inflation every 3 years or so. If you have a mortgage, you may need to get a subordination agreement from the bank. (another inconvenience for you to suffer)
Gary L Hutchinson
Minerals Management
6th Generation Texan:I wouldn't specify an amount for damages as it depends on the type of damage to your property. Example, damages to cattle guards, fencing or gates would be somewhat simple as a replacement fee would be sufficient. Damages to the surface area as a result of an oil spill or even worse, a salt water spill, would impact the surface area whereas extensive remediation might require much more money to correct depending on the amount of pollution and area effected.
6th Generation Texan said:
I had a company tell me that since they were spending so much money putting me in a nice road that I shouldn't charge them for damages! What is a customary amount for road damages?
Gary L. Hutchinson said:Jennifer,
Think about, list and then fairly evaluate every inconvenience you will suffer due to a road being on your property including the loss of revenue for the acreage used by the road. If you can, put dollar figures on each item per year. If they get a good well, the operator will be willing to pay a fair amount for access. Perhaps an annual or semi annual access fee that covers your loss of revenue and inconvenience. Make certain that the access fee is subject to the cost of inflation every 3 years or so. If you have a mortgage, you may need to get a subordination agreement from the bank. (another inconvenience for you to suffer)
Gary L Hutchinson
Minerals Management
You also may want to put in hours of operation, maintenance requirements, and restrictions, so they don't put a gas processing plany behind you and turn it into a freeway. An attorney should have surface damage and road use agreements you can look over and negotitiate from.