Beware !!! What is your timber worth ?

I have a good friend that signed a lease that stated he would be reimbursed for his timber . After the well pad was put in the O-G company sold his timber and sent him a check for 

$ 200.00 . He had a forest person look at his timber and placed a value of  $12000.00 on it .

I suggest  we  all have a forester look at or timber prior to the cutting .

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Permalink Reply by Kathleen on April 27, 2012 at 1:59pm
This is something the state can do for you for free, but they need notice. We did a manged cut years ago in the spring but the state couldnt get out here to early fall to mark and list the trees so we hired a forest consultant mark and list the tree than set up sealed bid sale. If I remember correctly he took 9% of the highest sealed bid and was supposed to monitor the cutting and reclaiming of the log yard.
Permalink Reply by Billy Park Whyde on April 27, 2012 at 2:18pm

Sounds like we land owners need to write up a drilling contract ! 

1. Exact location of well pad to be surveyd marked and shown to land owner no less than 90 days prior to pad construction begins to allow for crop damage, timber destruction, to be calculated and paid to lessor prior to starting of pad.

2. Performance bond made by drilling company to restore surface to  the drill site before the drilling begins and to be held as collateral and collected  by land owner if said repairs are not performed within 3 months after well is completed.

Any more ideas?

Permalink Reply by Jack Straw on April 27, 2012 at 3:06pm

Points well taken. It is certainly best to establish and receive full anticipated damages in advance - with the written right to subsequently receive damages incurred that exceed the prior agreed to damages.

One thing about tree cutting, it is likely that there will be a number of tress (of marketable species) that are not yet of marketable size; the landowner should not be paid "firewood" prices for these trees. The Forester who appraises the timber should appraise prematurely cut trees at the value they would bring at maturity.

All IMHO,

               JS

Permalink Reply by time will tell on April 27, 2012 at 10:22pm

very good point Jack . 

Permalink Reply by Buckeye on April 28, 2012 at 1:29am

I've been in forestry for 23 yrs and have never seen premature or unmarketable timber valued at mature prices. There's no way to predict that a sapling would survive to a 60+ yr rotation. Insects, disease, ice loads, storm events and so on. Were that true all young trees damaged in the normal wear and tear of a harvest would be worth $$$$$$$$$$$$$  Pulpwood values are literally about $2 pr ton and we don't have those markets in this area regardless. Due to budget cuts, we have one state forester here covering multiple counties and a backlist of over a yr last i spoke with Jeremy. By law they are allowed to make management recommendations, but not get involved in valuation as the logger's taxes pay his salary same as the landowners. Considered a conflict of interest. 

Permalink Reply by time will tell on April 27, 2012 at 10:19pm

Yes Billy , the tree tops where do you want them , water breaks to prevent erosion , and mark the area prior to cutting so one has time to get a accurate number on there timber .

 

Permalink Reply by time will tell on April 27, 2012 at 10:22pm

Kathleen , I had the same experience as you with a controlled harvest and they really treated me right .

I hope anyone wanting to timber reads this post and takes our advice .

I do suggest that have your timber looked at before any pads or right a ways are installed .

Don't just assume anything !

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