Mc Donald Land Services has contacted me about seismic testing on my land. I have a lease with Chesapeake that will renew in one year. They have offered $5.00 dollars an acre for the testing. After reading about Chesapeake on here I wonder if they are trying something to get me "held by production"or some other trick. Anybody have an opinion?
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Bert,
This is no trick. Seismic testing is not unusual.
If you do not allow the testing you may be in violation of the terms of your lease (I emphasize "may").
Why wouldn't you allow it?
All these horror stories about Chesapeake has me cautious I guess
McDonald is only a land services broker, they are hired to acquire the right to test. An actual seismic company will conduct the testing.
Bert,
Cautious you say? Actually you are being smart.
I would trust no one right now. The Oil & Gas companies are short changing landowners royalties, and the Ohio Supreme Court declared that failure to pay a royalty can not terminate a lease, so what can?
I denied a Seismic company access to my property in the spring of 2102 and was told the Seismic company has the right to test since I signed a lease with Chesapeake. I asked the land lady if the seismic company was Chesapeake and when they said no, I told her they had no right on my property. The Land Lady said she was telling Chesapeake on me. I told her to tell anyone she wanted, since I didn't care.
My neighbor said that after seismic testing his springs have since shifted underground causing water to come to the surface keeping his fields wet. I'm glad I considered that possibility when the ground was wet from the spring thaw. I had to give my neighbor permission to direct the water to a low spot on my property where a creek starts, in order to move the water from his field.
Then there was the landowner who complained Spanish Speaking Seismic Testers were having lunch on his property each day for several weeks after they tested his land and left.
I don't know where you live, but in my opinion seismic testing is the last thing O&G companies would want to do when they are laying down their rigs for a few years, hopefully forever.
If you get to look at their contract, you had better read all of it since no one is above using a phony seismic contract to buy your minerals. You are an adult and your signature is binding on you but definitely not for the O&G people. They do what they want.
You can do what you like, but be prepared to suffer the consequences of your trusting anyone in the oil and gas business. They have lost the trust of anyone who they have dealt with.
Anyone have a good example of how you trusted an O&G or related company and actually had a good experience?
One more thing, knowing what I know now about O&G companies SEVERELY short changing landowner royalties then wanting us to give them everything in return, I will say no to anything related to oil and gas until the STATE AND FEDERAL GOVERNMENTS RECOGNIZE AND STOP THE THEFT IN PROGRESS!!!!!
What else does the contract offer you? I bet it doesn't cover damage to your property or anything else! I have not been approached for seismic testing, but I have heard from some who have and they never seem to get a straight answer about access, payments, damages, and even whether they can or have to allow it.
In this case it sounds to me like they are not connected to your lease owner, so you don't have to allow it - if they were, they wouldn't be asking for permission!
I allowed TGS to put a meter for seismic testing in my back yard, as I live in a small town in S.E. Guernsey county, Oh., signed the paper work, that says that I will be paid $25.00. That was on 6-9-2014 and have yet to see a check as promised in this contract. Also the village leased property that is owned by the town, but the people that also own property here were never even asked to lease. I think it is all crooked.
Bert,
As in most things, there are good & bad companies. While most are good, IMO, you can't control which seismic acquisition company conducts the work on your property so it's always a good idea to make sure that any permit you sign, includes protection for you and your property. If you have an attorney who is experienced in O&G matters, I'd have him look over the permit request and provide advice.
Take a number of photos prior to operations start-up to document 'initial conditions' / establish a baseline state of surface conditions.
Some of the things that you may want to consider including / adding into the permit are:
- The company should, at their expense,
- conduct water well & water quality analyses prior to operations start-up. They should name & prove that the work will be performed by a licensed & certified company. In addition, structural conditions / integrity of any & all buildings should be documented via photos prior to operations start-up. The work & analyses should be documented and draft + final report copies should be provided to you for your files.
- provide a platt showing the location of the (full) seismic project along with your acreage (highlighted).
- provide a list or platt showing buffer zones (i.e. distances and / or zones near & around wells, structures, powerlines, etc. where operations (including helicopter) are restricted or will not be conducted. Note: local, state & federal guidelines exist and can usually be obtained via corresponding dept. of natural resources).*
- specify whether the acquired seismic program will be 2D or 3D and whether data type will be conventional P-wave, shear-wave, converted-wave or a combination.
- provide a diagram illustrating project source & receiver parameters (e.g. distance between receivers / geophones, energy sources, etc.).
- specify energy source type; i.e. explosive, vibroseis, etc.
- specify whether helicopters will be necessary to deploy equipment (typically receivers / geophones).
- list other equipment to be utilized during operations (e.g. ATVs / Mules, surveying equipment, Gators / mulchers, etc.)
- specify whether line clearing / brush cutting will be conducted along with method.
- list the estimated start date & duration.
All tests & analyses should be repeated (at least) post-operations.
Any / all damage, surface & otherwise caused by or during operations should be repaired & restored to your specs.
If you have environmentally sensitive areas, make sure the surveying & acquisition companies are aware of them and physically or digitally demarcate them. Specify whether these areas are 'no heavy equipment', 'no drilling', 'foot - only' or 'no operations' zones.
* In some cases, it may be worthwhile or necessary to require Peak Particle Velocity (aka PPV) tests prior to operations start-up in order to determine the proper buffer distances away from water wells, building structures and the like. Consult your attorney if you have questions.
Good luck!
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