Well pad access roads questions

I got a call from a CHK guy a few weeks ago stating they were interested in putting a pad on my neighbors property and wanted to access it thru my property. He asked permission to bring an engineer and a surveyor to figure out the best way to do it. I granted them permission and am waiting for their proposal. My question is, what should I expect as far as compensation. I am happy things are moving ahead for us but don't want to get the fuzzy end of the lollipop either. Any one been thru this procedure? 

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Permalink Reply by Mark McGrail on February 16, 2014 at 12:31pm

Greg,

Did the representative say there would be compensation?

Does your lease allow them surface access ?

If the representative didn't mention compensation and your lease allows surface access then there may be no compensation.

Permalink Reply by Greg on February 16, 2014 at 12:52pm

I thought he said something to that effect. He mentioned that when the exact route was figured out that we would discuss and agree on things. Maybe you are right tho.

Permalink Reply by kdj on February 16, 2014 at 3:03pm

They will most likely offer $2000/disturbed acre (cut and fill,, topsoil storage). Might be there a while

Permalink Reply by Mark McGrail on February 16, 2014 at 3:06pm

Greg,

Hope there is some compensation for you. If they don't offer then I would ask.

Permalink Reply by Greg on February 16, 2014 at 3:30pm

Thanks for the replies guys. I hope to know more soon as patience is not a strong suit.

Permalink Reply by Jim Litwinowicz on February 16, 2014 at 4:10pm

Read your lease before they show up so you know what is says. Also, look for a timber clause if there is timber on your land.  May be wise to have an attorney advise you beforehand.

Don't listen to what they say, read what the documents they give you say. Get every promise in detailed writing.

Ask how wide the ROW will be, how wide the road bed will be.  Ask about any turnarounds, passing zones, parking areas. Ask if there will be any storage of materials or equipment. Ask about you right to drive on it or cross it.  Ask for additional compensation if they use it longer than a pre determined time.

Permalink Reply by Mark McGrail on February 17, 2014 at 2:51am

Greg,

I may be getting ahead of the situation here, but I have heard company reps tell landowners that the up front monwy covers surface use and damages. How could it  since not all landowners in a drilling unit bear the responsibility of development ? So I think you are entitled to extra compensation.

Permalink Reply by Bob on February 17, 2014 at 3:57am

Greg, read your addendum in your lease.  It will cover all those question you have and if you have a decent lease it will tell you the price per acre for land disturbance and if theres timber to be remove it should cover that also.  Generally they will have a third party timber man give an appraisal     and you be compensated for that as well.  Good luck

Permalink Reply by jett on February 17, 2014 at 4:46am

I think there are differences in how you are compensated. If you are paid for damages, it is a one time payment & there may be no taxes because it is similar to an insurance settlement payment.

But if you are paid for usage instead (like rent) then there are taxes owed but you can go back and get paid if they damage/use it beyond the agreement. Possibly, the terms could be spelled out in the contract if it's not already in your lease addendums.

It certainly can make a difference in how the agreement is written out. Anybody know if this correct?

Permalink Reply by kdj on February 17, 2014 at 10:53am

I should have added crop damages to my post also.

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