Fair rate for seismic lease?

What do you all think is the going rate for seismic testing? DAS offered me 5 bucks an acre. Isnt it worth more to them to get valuable information? The wire they use to connect the explosives cost more than that.

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Permalink Reply by Rick on August 10, 2012 at 9:16am

Possibly it does, I'm not sure, but like i said it would be irrelivant. If it didnt, I would grant them permission.

Permalink Reply by Jim Litwinowicz on August 10, 2012 at 9:49am

I'd let them do it for free as long as they put in the report that I have huge oil deposits! lol

Permalink Reply by Josh Willis on August 10, 2012 at 2:09pm

What about people such as myself, 285 acres with no mineral rights. I will try to get as much as possible from these people because it does not help me or hurt me either way. After I pay income taxes on it, thats not even enough to cover property taxes for a year.

Permalink Reply by Janice L. Hancharick on August 10, 2012 at 2:53pm

Josh, I understand w/o mineral rights you aren't going to get rich or get anything from subsurface resources.  That doesn't mean you're out in the cold.  Of course you want compensation for the intrusion, but what do you want if damage is done?  It's quite possible that the seismic study will not damage foundations, crack walls or windows when the blasting occurs, but what if it does?  Can you prove that these items were in perfect shape before the studies began?  Did soil impaction occur as equipment rolled across your land. (See the soil impaction study packet from Penn State.)  Were fences damaged or livestock able to escape?  No you are not going to get big bucks from a seismic contract, but you should insist liability clauses be in it because accidents happen.  No one can assure you they won't.  You simply deserve to be compensated in a timely fashion when that bridge must be crossed.

There are many like yourself that don't have the subsurface rights to their land.  This is one way you can take care of business.  There are others.  Check in with your county extension office for more pamphlets.

Permalink Reply by steven fox on August 16, 2012 at 11:09pm

speaking of rates, has anyone had a DAS base camp on their property and what did they get in compensation for having the base camp on their land

Permalink Reply by Hal Whitlatch on August 17, 2012 at 9:32am

What  is wrong with you folks? You have been paid for a lease and now you want to gouge the Oil companies for more. Do you not want a well? 

Any oil company that wants to test my 308 acres is welcome and keep your $$$  just get me a well!!!

Permalink Reply by Indiana Smith on August 17, 2012 at 9:43pm

And if the findings are bad, your property is LESS valuable.  It works both ways.

Landowners can ask for any amount of compensation that they deem appropriate for the circumstances.  Many leases do not include any language related to seismic.  Some leases that include seismic language are specific about who is entitled to see the data.  If you sign a seismic agreement with company A, but you previously signed a lease that specifically gives the exclusive right to seismic data to company B, YOU could be in serious legal trouble!!!!!  

And the fact of the matter is that most of these seismic companies are NOT hired by the company holding your lease.  They are independent companies that are doing the seismic testing for their own data library's.  They then sell/license that data to ANY company that is willing to pay for it.  They expect to make $500 to $1000 per acre selling this data over the next 10 years to 5 or 6 different oil/gas companies.  You are under no obligation to allow these independent companies access to your property, even if they say that they will be selling the data to the company holding your lease.       

Permalink Reply by Indiana Smith on August 18, 2012 at 8:51am

Fang,

You stated earlier:

"if the findings of the testing are good it makes their property more valuable"

Now you say:  "your property is not less valuable"

Isn't less valuable the opposite of more valuable?

The fact is that the results from seismic testing can either raise OR lower the value of the mineral interest of your property.  Without the testing, the value will stay the same.  So if you like to gamble, go ahead with the testing.

It also remains clear that if you sign one of these seismic agreements and you have a lease with an "exclusive clause" YOU could be in big legal trouble by allowing the wrong company do seismic (there are several seismic companys working in our area right now and they all want access to our property,,, none were hired by any specific oil/gas company).  In any agreement that you sign, you definitely need a clause that makes the seismic company responsible for getting approval from the oil/gas company holding your lease.  

Permalink Reply by steven fox on August 17, 2012 at 10:02pm

to clear alittle bit of this discussion up . I was approached by DAS and they would like to put a base camp on my property which includes moving a trailer and some trucks onto my property for the next three years while they test 650 square miles in the area.  I was just wondering if anyone else has had a base camp on their property and if they where compensated for the use of their land while they had the base camp there ?

Permalink Reply by Rick on August 18, 2012 at 8:21am

Hey Fang, since you are so amicable to the corporate side of things, maybe you could offer to host a base camp on your farm for a non "greedy" nominal fee. Putzy....

Permalink Reply by Jack Straw on August 17, 2012 at 10:35pm

Steven,

             You might wish to contact a Real Estate Appraiser - a trusted Realtor might suggest one.

 

Just a thought,

                          JS

Permalink Reply by Craig on September 2, 2012 at 5:49pm
When we had such a camp set up on our place, there was a large amount of truck traffic and people traffic. It took up a good five acre chunk, we had an office in one side of the barn that they leased also, but we received 2k per month. Mostly because it was a pain for us, but what we brought to the table was a gravel lot that they could store and turn trucks around in. I will have to say, though, that if my daughter had been around at that time, I would have much regretted my decision. If you live close to it, and have children, think twice, and make sure they understand, in writing that you shall defend to the utmost your property and people. And you might have that same understanding with the local county mounty to cover yourself.

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