Fair rate for seismic lease?

What do you all think is the going rate for seismic testing? DAS offered me 5 bucks an acre. Isnt it worth more to them to get valuable information? The wire they use to connect the explosives cost more than that.

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Permalink Reply by Janice L. Hancharick on August 7, 2012 at 5:56am

Smart business moves don't have to equate with greed.  Isn't it possible that the smart business move to keep the $5 per AC "standard"  has been been smart only for the seismic company decades?  When the landowner requests liability, environmental, and reclamation protections in addition to a raise, why is the term "greed" brought up?  The days of treating landowners like permanent passengers on the turnip truck need to stop.

Suggesting that seismic work COULD make the land more valuable, also means it COULD  NOT!  It's a roll of the dice landowners are expected to make, but the roll is done to protect drilling/production companies.  Big money, major law interests, and smaller drillers playing "front players" for the Shells, Exxons, Marathons, etc. exist to protect whom?  It's time to raise expectations for seismic work being done across our countryside. 

Again ... recall the major profits made from seismic testing companies selling their information to  drilling/production companies, and the natural gas/oil profits resulting from major "finds".  Also consider the millions saved when drillers/producers learn the $$$ patch they thought looked promising  turns out to be mediocre. What kind of a lease will that landowner be offered ... if any?

At $5 per AC on a 20 AC strip, the landowner receives $100, and gets to continue paying taxes on land that supplies considerable higher earnings for everyone on down the line.  Triple that $100 and it STILL lacks  the sense of reasonable payment for the person owning the land.

This thread needs to be spread far and wide.  Unconventional shale productions are located throughout the U.S..  Seismic testing will continue to be a very lucrative business for a long time.  It's   time the term "reasonable" is focused on contracts benefitting the landowner with more than just token payments and minimal protections.

Thank you Rick for bringing this topic into the General Discussion portion of GMS.

Permalink Reply by Rick on August 7, 2012 at 2:54pm

Thank you Janice for putting things into perspective. The more I think about all this, the less likely I am going to sign the permit. The production company that I am leased with may not even buy the information from the seismic data company, and may choose to do their own testing all over again. I dont like the language in the request, I dont like the idea of them being able to sell the information to many different entities... ie. several production comapnies in the area, the USGS, the state, mapping companies, etc. All without compensation to me beyond a grand total of $238. And that amount is suppose to cover any damages to my property. In the 20+ years I have owned and farmed my property, I have had good years and bad years, but mostly inbetween years. $238 isnt going to make my live any different. If the company that holds my lease  by production told me that drilling in eminent, and that this is part of their planned operation, that would be a different story. But with things as they are with my property HBP, they may never drill here for many many years. And that would mean the only people making a substantial amount would be the seismic data company. I'm the one that risk my livelyhood every year I farm. I am the one that lives a modest life. i am the one that basically wore my body out while just getting by. I own the information they seek. Pay me for it.

Permalink Reply by D Gates on August 9, 2012 at 11:59am

What are the legal rights of the landowner, if the seismic tester doesn't pay the landowner and uses their seismic results without the landowner's permission?  How is it possible to find out if the testing company published/sold the information?

Permalink Reply by Rik on August 9, 2012 at 12:13pm

 I have been told the data sells for $40 to $60,000 per 640 A, which is $64 to $93 per A.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on August 9, 2012 at 12:45pm

If these figures are correct I doubt like heck anyone in Texas ever got $50.00/acre. Unless , of course , Seismic Data Collectors are charitable organizations.

Bottom line is: Try to get more $$ and if they balk don't sign if you don't want to! I saw that 5.00/acre is the "prevailing rate" and was happy to make a couple bucks and potentially help the development process. That's my take on it , for what it's worth. We must remain vigilant , but don't get so hung up on the nickels that you let the potential dollars slip away.

Permalink Reply by Janice L. Hancharick on August 9, 2012 at 1:57pm

True enough Glenn.  Seismic contract or lease, there's much more to both than the figures.  That was one of the points I was wanted to get across.

For D. Gates:  The only time the landowner is aware of testing being done is when the bumper-thumper truck passes on the road, or a data collector asks permission to bring equipment on the land in queston.  Only the latter provides a payout.  Any aerial testing done doesn't require permission or payout to the landowner, but neither is it likely to cause any physical damage unless it crash lands.

These firms make exceptional profits for turning solid info over to drilling companies.  Coming onto the land is the final way they have to find the needle in the haystack.  Once the date collector knocks on your door, it's highly likely something is close.  How wonderful that something is, is determined by the testing results.

Unless you have a solid lease in hand,  how rich or poor your resources are needs to stay

your business.  Holding out gives you a greater opportunity to secure a solid lease.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on August 9, 2012 at 3:56pm

I agree , Fang.

It's akin to cutting off your nose to spite your face.

The 5.00/acre may seem like a token amount , but the benefits can be infinite!

Permalink Reply by Rick on August 10, 2012 at 1:56am

No Glen, they are offering the 5 bucks to get them out of paying for damages beyond that. That what the request clearly says. And Fang, I'm not being a jerk, so please dont be one yourself.

Permalink Reply by Ronald L. Rohr Jr. on August 9, 2012 at 3:41pm

my name is ron rohr land owner off of slater road i talked to my brother in-law and asked him if he got his money from the people when they did thier seismic test he told me no i did not sign a paper with them and they sent me a letter back saying they would pay me ten dollars an acre up from the five dollaes they started with.my brother in-law then asked me why i was restricted when they came out and did thier test on him and some of the other folks on our road and i told him because i had not signed their paper

Permalink Reply by David on August 10, 2012 at 1:51am
I am a landowner in NEPA and we got 5.00/acre. The seismic crew gave us damage concessions, informed us of every step and left the land they way they found it with no damage. Also, if you are talking about 3D seismic then you are crazy not to let them do the study. I'm told when they get to this step they are having the study done to site well pads for optimal location. 3D seismic won't tell them gas is present but it will tell them thickness, depth and if there are any faults. Seems counter-productive not to let them do the study.
Permalink Reply by Rick on August 10, 2012 at 1:58am

The company that requested the permission is doing the seismic on speculation. Speculation of selling the info to a production company. They are not contracted to do it. As I said earlier, if I was contacted by the company that holds my lease, and they told me they were going to do this, it would be a different story. I would be fine with it as long as they agreed to pay for damages and warranted that for a period of time. I dont know thiscompany's reputation. For all i know they are a fly by night. Hell, nobody even came out to talk to me face to face... they didnt even call... just fill this out and return. How much respect does that show to me??

Permalink Reply by paleface on August 10, 2012 at 2:09am

 If the gas and oil company that you have a lease with is doing the seismic the lease's i'v seen give them permission to do the seismic ?

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