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 Dave on April 18, 2011 at 6:08pm
Thanks  for the great info!!
Permalink Reply by Brian on April 19, 2011 at 5:28am

Mark, because they are asking for an access road not pipeline, I would ask for A LOT of money.  It WILL decrease your property value.  You have no idea how many times they will REALLY come back to work on those pads.  Neither do they, or else they would lease the ROW off of you. 

 

I am definitely not a greedy person, but it would take a lot of money to let someone have a permanent ROW (access road) through my property.  We're not talking about an underground pipeline, this is an access road that will invade your privacy.  If you were going to be getting royalties then that's a different story, but you said you will not be.   

 

In my opinion, I would say here is my one lump sum dollar amount (whatever it is really worth to you then double it.)  Or here is a yearly lease agreement with an escalating payment amount take it or leave it.   

Permalink Reply by Mark Reefer on April 19, 2011 at 5:59am
Yes. That's sounding pretty close to what we are thinking..
Permalink Reply by jeff k on April 19, 2011 at 3:03pm

  Mark... Keep in mind also the amount of traffic that will incur 24/7 to drill each well. Our first well had several thousands of trucks, tankers, workforce, etc....800 tankers just for fracing and not a pretty sight to look at everyday beleive me. It takes about 3 months for each well and with 2 pads you may have 2 wells being drilled at once. If the location isnt close to your home that may not matter to you.

  600 ft. long ? x say 100 ft. wide ? They'll tell you they only want a little more than an acre probably..Dont worry about being greedy ..They certainly arent. You'll have to live with this for many years to come and they'll be saving money by short cutting to the pads across your land....

JK

Permalink Reply by Dave on April 19, 2011 at 5:19pm
I have to agree there is a lot of traffic, but so far Chesapeake has made the roads better than before they arrived and fixed any damage.  Im hoping there are no wells too close to my property.  I can now see and hear a well that is a mile away.  Im sure if it was closer it would be very loud 24/7.
Permalink Reply by Billy Jack Rockefeller on April 20, 2011 at 12:40am
They will pay you a monthly rental if you negotiate.  In fact, in the long run, it is better for them to pay you that way.  Also, be sure to spell out exactly how you would like to have the land reclaimed in 60 years, once they are done with the road.
Permalink Reply by Tom Brian on April 23, 2011 at 3:47pm
with a well that close why are you not included in a plot for a % of the gas ? did you refuse to sign a lease?
Permalink Reply by Mark Reefer on April 23, 2011 at 3:57pm
The wells may not be that close. The jury is out on that as of yet. We have a lease with another company, not the one doing the drilling. My understanding is the drilling companies don't notify you whether you are part of a drilling unit untill the wells are drilled. True?
Permalink Reply by Kathleen Elsie Gibbs on May 2, 2011 at 12:15am
Don't think that they will only use the ROW twice a year after the pads and wells are basically finished. The pads nearest us have trucks a min of twice per week and the fracking could well need to be redone to keep the well active. Get what you can and remember how this can impact those that live near you. The noise, dust and traffic can be made manageable with the proper management of the ROW or you family down the road can be living with a nightmare if the wrong choices are made.

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