vacated road wanted by oil company

have a freind who has a vaccated road on his property it starts at begining of his property and travels alongside it area asking to be used is roughly 15feetx1100feet oil company is wanting him to sing a lease they came out today and said would be back tommrow with lease and pay for friday offering over 2000 under 3000 is that good

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Permalink Reply by mike james on April 17, 2013 at 7:44am

he owns half road neighbors own other half they say they just want to

Permalink Reply by Jack Straw on April 17, 2013 at 12:45pm

15 feet x1100feet sounds terribly narrow.

I would expect a road easement to be more like 33' wide.

33' x 1100' would be almost 1 acre .... but one darned skinny, inconvenient acre.

I would look at 1 acre is worth in the area; and would want to get a serious multiple of that, as property on either side is impacted.

I would insist on an abandonment/termination clause; so the landowner does not "lose" this corridor forever.

I would want an annual rent (with an escalation factor to cover inflation).

Your friend will forever pay property tax on the land on and nearby this easement. 
Your friend's land on and nearby this easement will forever be impacted.

Just a guess, but a fair offer might be more like $20,000 - $30,000 (not $2,000 - $3,000) plus an annual rent of $4,000 - $$6,000. Remember, this is just a guess ... it might be too low (but I doubt that it is too high).

Also, he should insist upon locked gates (with his lock daisy chained).

 

All IMHO,

                 JS

 

 

 

 

Permalink Reply by Jim on April 18, 2013 at 12:54am

Mike,

You will also want some language in an agreement that prevents the oil company from using your drive to access your neighbor's land without compensation.  If that happens, then that is when you start talking big bucks.  All this information you are getting is based on none of us seeing the property.  If your drive becomes to expensive, the oil company will just go around you. Get a good Lawyer.

Permalink Reply by RichR on April 18, 2013 at 1:17am

I would not mess around directly with them, hire an attorney to draw up an agreement with your terms, not theirs.  Make sure there is a locked gate included in the agreement, that cuts down on lots of traffic.  It's not all about money, it's something you may have to live with the rest of your life.

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