Right of way one time payment advice

A major gas company wants 600 feet of right of way across our property in order to access two permitted well pad sites they want to develop. They want a permenant ROW to set up, drill, and maintain the wells for the next thirty years. Initially they will be using the ROW alot untill the wells are established and then twice avyear to maintain the wells. Our property is unlikely to share in the proceeds derived from any gas recovered. There is no other easy way to access these two well pad sites other than crossing our property. The gas company refuses to consider an ongoing monthly or yearly payment plan for the ROW and will only consider a one time lump payment for it.

My question is what would be a good amount to accept for this ROW. I don't want to be greedy but I don't want us to get the shaft here either. If anyone with experience with a situation like this has any advice it would be deeply appreciated.

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Permalink Reply by Robin Jackson on April 18, 2011 at 9:16am
Mark, please get an attorney and make sure you get a fair price and comparable to others. Also if this is the only way they really NEED YOU..
Permalink Reply by jb379 on April 18, 2011 at 9:42am

Mark,

 

For pipelines, it seems like there is a lot of talk about $1/per inch diameter of line/foot.  Don't know how that would apply to a simple ROW.  I suppose if you had a $$$ in mind, you could always throw it out there and see if it sticks.  

 

JB

Permalink Reply by JK on April 18, 2011 at 10:40am

Mark,

A couple of years ago Chesapeake started us out at $3@ foot.  We ended up at $12.

It took lots of negotiating. Plus you want to make sure to say where on your property you want the line to be run.

We had it put along the property line.

You really do want to get a good attorney to get more info and sound advice.

Permalink Reply by Dave on April 18, 2011 at 11:53am
Just a pipeline.  I figured it will make a nice trail for me to ride my horses through the woods. Where there is a pipeline wells follow.
Permalink Reply by Mark Reefer on April 19, 2011 at 2:29am
Yes. It is just an access road they want now to get their tractor trailers in to build the well pads. Then twice a year a pickup truck to maintain the wells they say.
Permalink Reply by Ann Ticopa on April 19, 2011 at 4:43am

What matters is what the agreement they want you to sign says ... not what the gasco's agents tell you.  Yes, they might drill all six wells in one shot and never refrack.  They also might drill a single vertical well to hold leases, come back in a couple years to drill the horizontals, then come back five years later to refrack.  Also keep in mind that the road will provide access to trespassers.  And, it might decrease the resale value of your property.

 

Permalink Reply by Mike Flor on April 18, 2011 at 1:27pm
Considering your not going to benefit from royalties from these wells..you might as well ask for a million dollars.  Once you give them the right of way..you dont get it back.
Permalink Reply by Dave on April 18, 2011 at 1:47pm
Its just a buried pipe going through a field. My farm owes me nothing. Paid less than 90 000 for my place in the 90s
Permalink Reply by jb379 on April 19, 2011 at 1:23am

Mike,

 

I think Mark has the right mindset that he wants to ask for the right amount but not get too greedy.  I guess if he truly does not want them there, then get greedy.  However, if he does not mind, then he needs a realistic figure that he will make out on, but not steer the company another direction.  Seems like there is always a "plan b" regardless of what we landowners are told.

 

JB

Permalink Reply by Mike Flor on April 19, 2011 at 10:02am

JB, its his property and he potentially will lose use of that land as an access road to benefit the gas company and other property owners.  What value to do you put on that?  Plan B is 999k!

 

Permalink Reply by jb379 on April 20, 2011 at 3:39am

Mike,

 

I understand and appreciate what you are saying.  That is why I stated if he does not mind if they are there, to be reasonable and put some extra cabbage in his pocket.  If he does not want them there, then ask for the world.  Seemed pretty clear to me.

 

JB

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on April 18, 2011 at 2:49pm

Hi Mark and greetings everyone..

I found this link some time back and thought you might find it useful...have a look.

https://api.ning.com/files/rBr6vXNrPZ4-8n05pf0JWM-qXzHCcoRgW11QBmcp...

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__  cause it is not just how much per square foot or by the acre...it is how many lines, what are you carrying on those pipelines, will there be other equipment, how will it affect any resale value, etc.

_____

 

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and if any of you say 'thank you' what a great list to work from (for I sure was overjoyed when I google searched and found it)...then thank our admin Keith for putting this forum together (and of course the lawyer who posted the list online) ...surely helps us all communicate better and in better knowledge.   I know often we think that that the oil companies are taking advantage (and maybe some are)..but they rely on the land people to communicate with us that are not so knowledgeable in these areas (and of course some of the land agents are still learning..as we all are).   I hope we all get to where we realize that this isn't a one time, one day relationship...but ongoing and valuable for all involved.   And the GOD who made all fossil fuels available is hoping that we indeed learn to thank Him and learn to be good to one another as we use His resources to benefit by.   BTW...Happy Easter everyone.

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