Rights of a surface only owner
Like the title says, I just bought a farm without thhe oil/gas rights. I know I can't do anything about a well, but what other rights do I have? For example, when it comes time for a pipeline lease, which has not been signed on this property, I would ahve controll and ownership of that, correct? Anyhting else to be aware of? Thanks
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Replies to This Discussion
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Permalink Reply by Oliver Perry on
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I think as the surface owner you are intitled to substantial compensation if a well is drilled on your property. Same for pipelines, compressor sites, retention ponds ect. You have more rights than you might think.
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Permalink Reply by Oliver Perry on
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Pipelines, compressor sites, and retention ponds are surface right issues and have nothing to do with OIL & GAS Rights.
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Permalink Reply by Finnbear on
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Unless the lease the previous owner signed allows pipelines, compressor sites, and retention ponds. Many leases do allow these things and if you buy land without oil and gas rights where the previous owner leased the property, you may be in for a rude awakening when the oil and gas company decides to develop the leasehold.
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Permalink Reply by Jimmy Wilson on
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Agree with Finn 100%, watch for the outcome of the Sportsman club VS Audrey and Chessy, I think they may be paving the way for you to get some additional rights if they win the lawsuit, i think the judge ruled in their favor and Chessy is appealing it ?
I think they may have set some precident by winning that.
i think to sum it up, they were not allowed to extract oil and gas from neighboring properties from the sportsman club property drill pad, allowing for some negotiations.
I heard a few stories of Consol really treating surface only owners with incredible respect and fairness. if Consol owns your rights, you may be OK.
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Permalink Reply by Lance Nimmo on
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Nope, it's Shell, god help me.... Also, it was an old East Resource lease, so there is no mention of stations, pipelines, etc. I'm covered there...
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Permalink Reply by jb379 on
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Oliver/Lance,
If you do not own the OGM's, you have way less rights than you may think you have. I am not an attorney, howerver, from what I understand here in PA, essentially the OGM owner has every right to go in and rightfully claim what is theirs with only a couple minimal laws protecting the surface owner (such as not being able to drill within certain distances to water sources or dwellings). Best of luck.
JB
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Permalink Reply by Lance Nimmo on
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I am retaining the mineral rights, just not the oil/gas.
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Permalink Reply by Oliver Perry on
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Also I believe the well sitting fee goes to the surface owner, not the oil & gas rights owner.
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Permalink Reply by Finnbear on
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Every lease I have seen says "the lessee shall pay to the lessor" for the siting fee.
The lessee is the oil company.
The lessor is the one who retains the oil and gas rights and signs the lease.
The landowner who doesn't have the oil and gas rights is SOL.
The devil is in the (lease) details. Fully understand every word of the lease involved before you involve yourself in a situation such as this or you may end up with a huge case of buyer's remorse in a few years.
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Permalink Reply by Lance Nimmo on
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Yeah, i have it in the sales contract I get the well placement/ access road fee.
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Permalink Reply by Golddigger on
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The surface rights owner is entitled to recover any and all surface disturbance fees caused by a well pad and buffer zone regardless of what the lease states. However the amount may be determined by the existing lease of the OGM owner if he owned the surface rights when he signed the lease. Otherwise the gas company would need to negotiate that fee with the surface right owner or pay the going rate for a pad if they can't come to an agreement.
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