I'm interested in information about how much land owners are paid for having wells drilled. Neighbors (about 1 1/2 miles from me) were approached yesterday by a company that wants to set up two well pads on their property. The reps will be returning to look over their property next week. The wells are to be drilled next year. I advised them to get a good lawyer as soon as the company offers a contract. But I'd like to get them as much reliable info about the whole process and the value of having the wells drilled. Thanks to anyone who can help.
20-35K per pad.
If the wells won't include any of your acres (meaning no royalties), I would want a yearly rental fee.
What Paul M said.
Plus, I live right next store to a well pad. You don't want one on your property.
The ONLY advantage to having the well pad would be as leverage (negotiation) to guarantee that all of your acreage in a production unit.
And I repeat, you really don't want a well pad on your property.
Philip, may I ask why you don't want a well pad? I know during the drilling it can be a mess and noisy buy when I drive by well pads they look clean and kept up? Just wondering. Do you have a well pad on your property. Thanks
I live next to a well pad. See here:
The gray building is my stable and the horses in the distance are grazing on my fields. The drilling and fracking are quite noisy and the amount of traffic is unbelievable. When everything is done and in production there is always one or two trucks in and out every day. The wells are rather loud when in production. The heater make a strong "flaming" noise. Sounds like a train not too far away - all the time.
Here in Western PA rarely are all the wells drilled at one time so they will be back. Also, we have multiple shale levels here so they will be back many times over many years.
There is no advantage to having the well pad unless you can use it to get something. But since the surface rights are usually determined by the original lease, you may have no leverage.
I am upwind from the well pad and I would not want to be down wind where you would hear more noise, smell more smells and get more dust.
WOW didn't know the could put a pad so close to your buildings. Back in 2011, CHK staked out a pad but it was about 100 yds from my barn and even further from my house. They have not been back and I am sometimes temped to build a barn where CHK picked to drill. Haven't done it yet, but thought about it many times. They were going to include about 50 out of 65 acres of my farm in the drilling unit. I have VERY mixed feeling about a pad but I signed a lease that gives them surface rights.
Unless you NEED the money, don't do it..... that pad will be there for a long long long time, that money will be gone in a year. They're very loud, and ugly!
don't know if you read my earlier post about well pads? I agree with the posts about dirty noisy, you really don't want a well pad on your property, but most leases gives the o/g co. the right to put it their anyway. most will pay 25 to 30k for a pad but that's like selling 5 acres of your land for 5k dollars an acre and look at an eye sore for the rest of your life .and yes you can have a well pad on your property with 10 wells on it and not be getting paid, that is like dumping salt in the wound. if you have an opportunity to negotiate the terms of a well pad, I would insist on a percentage of everything that comes through the pad..... not just what is in your unite.
I would be thinking 4 to 5% for anything not in your unit, that would be gross with no deductions.
if you are sitting on your porch looking at a well pad that is producing millions of dollars pr. month, and your not getting paid, I think it would be a very bad for your health.