Disturbance fees for an access road...how much

Had a meeting with CHK this morning working out the details of a proposed access road thru our property to a well pad just off our land. The rep was a nice enough guy and very informative. The road is about 400' long and about 25' wide where it crosses. There is also a bit of "disturbance zone" where the pad comes right to our property line. They had the total at 1.5 acres and are offering $3000 ($2000.00 per acre). He says this is all they offer but seemed willing to accommodate a us in a few other areas like graveling our driveway (1300' long).

 

Does this seem about right or are they low balling us?

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Permalink Reply by Appalachian on April 30, 2014 at 7:46am

Not sure about pricing, but what are the details of the ROW or Easement?  Temporary or permanent?  If permanent ask for Rental.  Who will be responsible for maintenance?  Is access to the roadway restricted to CHK only?  Will it be fenced or gated?  BMPs used in construction?  Don't let them lay pipes or lines upon it.  How much traffic is to be expected?  What type of traffic?

Lots of issues to resolve before you get to the money.

Permalink Reply by Kathi Albertson on April 30, 2014 at 8:19am
Greg,

That ia a low number. I am getting more than twice that per month for a pipeline project and they have to put on new gravel when they are done. In addition, we are getting much of the payment attributed to damages rather than rent for tax purposes. I have learned that land men have two play books; one for those who take what they offer and one for those who politely ask questions and act like a business partner. Good luck.
Permalink Reply by Greg on April 30, 2014 at 1:39pm

Thanks for the replies. It appears to be a ROW. The proposal indicates they will do all maintaince  and so forth. It just seems like $2000 an acre is low. The rep assures me that is what everyone gets and it is not up for negotiation. I obviously don't want to get screwed but I don't want to put the project in jeopardy either. Has anyone else been in this situation and if so IS it negotiable.

Permalink Reply by jnm on April 30, 2014 at 2:40pm

Would you sell the rest of your land for $2,000 an acre?  If not I would tell them they need to find another way to the pad.

Permalink Reply by Kathi Albertson on April 30, 2014 at 3:12pm
Greg,

We have a well that was drilled in the 80's with an agreement that the ROW to it would be maintained. It is hardly passable by 4 wheeler now. Once the production slackens so does the attention given to previous promises. So we learned. With our most recent experience with a pipeline replacement, we nicely told the land man what our requirements were. We got along well and our requirements were met.

If they need your land, they can pay for it. The pipeline people from Texas that have been working at our place have told me that the G & O folks laugh at how they can take advantage of those of us in the North. Don't let them do it to you.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on April 30, 2014 at 4:24pm

Greg, everything is negotiable.  Never forget that.

Permalink Reply by skittles on April 30, 2014 at 3:31pm

Well, you are dealing with CHK, so you better get a good gas and oil attorney and sign nothing unless your attorney reads it first.

Permalink Reply by Eric on May 1, 2014 at 5:52am

Have them pick up your attorney fees too

Permalink Reply by cj wyalusing on May 1, 2014 at 8:52am

Greg be very carfull make them plant screening  the dust is awful if they are going to fix your drive first these people have long list of promises that are not completed make them inclued you in every well they drill theres a long list of things that you should included ask on this site if any one has opinion and look at all sides  and especialey hire a lawyer . next thing they will tell you now you don't want piss your neibors off if the want to drill there they are more 

than willing to spend all kinds of money  because it not there's it all of the roalety money that they never pay the land owner!!

Permalink Reply by INVICTUS on May 1, 2014 at 12:46pm

I was paid $10k/acre. I'm not kidding. It's called negotiation. But I had some interesting clauses within my lease that allowed me to barter this.

No, I did not sign a non-disclosure.

No I won't divulge much more.

But I will tell you not to allow "Location approval" until that number is negotiated.

Access to that pad is everything.

But your lease probably forces you to play ball.

And you better have your documentation in order before you slap them with that number.

They can burn you if you aren't prepared.   And they aren't subtle about it.  'Specially if Oklahoma gets involved.

GET prepared.

Sorry to be so blunt but I hope you prevail.

Permalink Reply by Greg on May 1, 2014 at 2:38pm

I did send the proposal to an attorney today. He does a lot of OG work and wanted to see what we had. No, I did not use an attorney back in 2010 when we singed the lease (sure wish I had) so we are bound by that as well. Hopefully he gets back with me soon. I will keep the thread up to date and thanks to all who have helped. Greg

Permalink Reply by Booger on June 6, 2014 at 2:47am

Greg - anything happen lately with this?

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