Family estate has been approached about a possible surface use agreement in block 2 of Reeves County. We would like some help on the going rates for: price/acre for surface lease/usage along with price for new road construction, price for existing road usage, price for caliche (estate owns the pit), pipeline prices, tank battery construction prices, frac pit prices, electrical lines, or other surface damages
First look at University Lands rate & Damage Schedule dated Sept 1 2016. Some things may say negotiable. Call person listed and ask about recent rates in new contracts. As a public institution, this is not confidential information. I have not seen similar schedule on GLO website, but call into surface department and ask.
Hi, We too have been contacted by a rep from a company named EagleClaw Midstream Ventures about an easement in C18.
It looks like it is a permanent easement. There is language that refers to heirs and forever binding, etc.
It also talks about warranting to the Grantee that I own fee simple title. I have no idea since it is a parcel of land and mineral rights that has been in the family for years.
We have a 3 year lease on the property. Does an easement affect that? Do I need to check with the company that has the lease?
I have a ton of other questions.....
Bottom line...do I need to secure an attorney or is this something that I am over thinking and is really just standard order of business.
Any thoughts or insights would be appreciated.
Mary
Mary,
I would contact the company about questions or concerns (email would be a good way to have written confirmation of questions, concerns and answers). If you are still interested in pursuing this, I would get legal advise. You want to make sure that you and the estate are protected; and, get the type of deal you want. As we began dealing with this, it looked as if they first disguised it as a surface purchase. We are still dealing with them through legal counsel to get what we want. I don't think that this could necessarily be a bad deal, you just need to be careful.
Mel
Do not agree to a permanent easement. It should expire upon cessation of use. Do not warrant title because you do not want to be sued later for any defect in title, especially because you may not be able to correct the title. If your family is unfamiliar with easements and the legal effects of the various clauses, then you should consider consulting an attorney familiar with ROW agreements.
Thanks Mel,
I will do that. The person I have talked to has been very forthcoming and helpful so far. I see the good points to an easement, it's the language and possible permanence that I don't understand.
Thanks for your input.
-m
Thank you for your response as well. The permanence and warrant parts do concern me. I will email the agent and go from there.
I wanted to make sure I wasn't overreacting to what might be common language.
Thank you.
-m