Are the following terms reasonable for a SUA? Thanks, Randy
1. Well Sites, Facilities, Locations and Frac pits: Operator may construct well site locations, tank battery locations, frac pits, and other related facilities, to be used in connection with the drilling an producing of wells located on the Lands. As compensation Operator shall pay Owner $4,000 per acre for well sites, tank batteries and other facilities, and $8,000 per acre for a frac pit. There shall be no additional compensation required for tank batteries located on a well site.
2. Roads: Operator may use existing roads or construct new roads as needed to be used in connection with its oil and gas operations on the Lands. Compensation for the use of existing roads shall be at a rate of $25 per rod, and for the construction and use of new roads at a rate of $40 per rod. New roads shall be no greater than thirty feet (30’) in width. Operator shall also have use of an additional 20’ of temporary workspace for the purpose of construction, maintenance and repairs. Operator agrees to maintain the roads to be passable by passenger vehicles and to conduct repairs as needed. If requested by Owner, at any point where a new road crosses a fence Operator shall install a cattle guard at least twelve (12) feet in width, with a gate that can be locked, to be built and maintained with high quality materials in a manner acceptable to both Operator and Owner.
3. Water: Operator shall not use water from the Lands in connection with its oil and gas operations unless a separate agreement is entered into between Operator and Owner.
4. Pipelines: For the installation, operation and maintenance of pipelines on the Lands, Operator shall pay owner at the following rate:
Less than 6” $28 per rod
6” to less than 12” $48 per rod
12” to less than 24” $72 per rod
24” or greater $128 per rod
5. Electric Lines: Operator shall pay owner the rate of twenty dollars ($20) per rod for electric lines, which to the extent reasonably possible will be run alongside roads in order to limit interference with Owner’s use of the Lands.