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 .
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?
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.
very good point Jack .
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.
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 .
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 !