Surface Use Agreements

Texas Mineral Rights Reeves County, TX
1

I have land in Reeves County, Texas that presently has a producing well (for approx. 6 months). When the land use and royalty agreement was done it was recommended by Browning Oil to use the University of Texas System for Rate and Damages Schedule. For the first land use I accepted this for land use payment. Since then I had a request for an easement that would only pay me less than $1,000.00 and I called a contact with Rate and Damage Schedule and found that his opinion was that the fees were typically more fair to the developer than the landowner.

Question 1. Is this typically true? And if so is it still fair?

Question 2. Since I did sign a development agreement stating that the University of Texas Schedule would be used am I bound by this? If yes so be it. If no should the developer work with me? What fees should I use to discuss this with them to be fair to both sides?

I am now dealing with Oxy USA and not the original Browning.

Trying to learn.

2

John,

The University Lands Schedule is truly the best starting point. It does not mean you have to use their numbers. We’ve negotiated and received more than what the ULS states. Note that with a pipeline, if you are too onerous, than can just condemn you so you always want to tell them you are willing to work with them. In our documents, we actually spell out the fees. Just stipulating that the ULS is to be used, is not good enough. If you will contact me through the board privately, I’ll send you my contact info. I’d love to look at what you signed.