Oil company wanting a temporary easement on my property

[aviator41]

$750 isn't NEARLY enough, 10X and you're getting there.

Everyone is right about the contract. it needs to include every single cotton-pickin' detail, down to the trash, fencing, vegetation rehab, prohibition of use of chemical clearing agents, consequences for spillage of water, diesel or any other chemical, regardless of liquid or otherwise that may cause damage to YOUR property, it's vegetation, water and mineral reserves. That would include trash and waste from the workers and their vehicles. It needs to state that the pipe needs to remain X number of feet AWAY from the trail or established path at all times and that any damage done to items left on the property is not your responsibility. They must be responsible for fill in any ruts caused by their vehicles and must establish windows of time in which they may check their lines. If you want to hunt your property the contract needs to say that and indemnify you from damage in the even the line is ruptured. There also needs to be a clause allow you to immediately terminate the contract for violation of any of the terms.

Just my idea.

They're doing this to make money and will do so at whatever cost. Make sure and protect yourself and your property including water and mineral rights into the future.

 

[r00s7a]

Good luck with all of that. Does not sound like they are going to be doing much to be disturbing your place, other than driving through. I do agree with the contract part of it to protect yourself, that is always in your best interest. But if all they are doing is laying a 10" poly pipe beside an existing road, don't plan on getting rich off it. If you start throwing out ridiculous numbers, they may say screw you and claim eminent domain and pay you what they want and do it anyway. They have more money than you, and I doubt this is anything you want to fight them in court over. I'd certainly try to negotiate, but you start adding zeroes, you may be screwing yourself.

 

[Okie4570]

Find an attorney that deals with this, commit or sign nothing till you do. Don't do this without one. The company want the easement knows all the terms, tricks, rates, etc.....you don't, and an oil attorney will.

 

[Okie4570]

Sorry I'll edit, I thought they wanted to run it through the length of your property.................$750 is still too cheap IMO.

 

[ImTheDude]

Sorry I'll edit, I thought they wanted to run it through the length of your property.................$750 is still too cheap IMO.

The road runs from one corner to te other at a diagonal across 160 acres.

 

[Oklahomabassin]

$100/day for every day, they have anything on you. Anything more than a week, and you are ahead of the $750.

 

[ElkStalkR]

You guys crack me up.

I would say $750 is a fair offer. HOWEVER, if you are truly worried about it screwing up your deer hunting then asking for more or simply saying no isn't out of the question. BUT don't get carried away with your offer or they will just go around you.

Here is the real question nobody has asked. How many feet of easement/right of way are they paying for? That can be a big factor on the price.

 

[ImTheDude]

Just over 3,700 feet.

 

[retrieverman]

I'm in a similar position, but they are putting in a permanent pipeline across our place starting in about 6 weeks.

 

[fishfurlife]

$750 is honestly cheap. I would ask for double and then be happy with something around $1000

I have dealt with way to many of these types of leases and never dealt with one that was that cheap for a surface run of a mile.

I have seen landowners start putting a trash clause in their contracts as well. Trust me. There will be trash. Period. At $100 per piece of trash found, they seem to start paying attention very well after a fee coke cans get tossed out a window and left.

For reference, 3" poly water supply line consistently brings $500-$750 per mile of surface line. Frac line 8-12" line will bring $1000ish. Per mile. The frac line will be driven nonstop while the line is actually being used to frac. Pumps will be attended 24/7 while water is actually moving. 3-4 times a day is bull. It will be more like 3-4 times am hour when they are actually pushing water. Them using your water as a source pays pretty well. $150-$200 per day for water from your well/pond. Usually those lines end up on the ground for no less than a month.