Replies to This Discussion

Permalink Reply by Richard Flynn on August 4, 2011 at 2:31am

With having no responce I take it nobody alse was approched about this.

I guess with all the wells going in this is the first time they had to cross land other then what the well was being put on

Permalink Reply by James Davenport on August 22, 2011 at 2:57am

I've seen contracts where they just wanted to use a corner piece of land for a road, but the contract encompasses the entire property and includes rights to put in warehouses, storage, pipelines etc., and basically opens up the entire property for their disposal.

 

Forget what they tell you because as long as their lips are moving, the bovine meter will be going off the wall.  They use high pressure tactics, such as "it's not safe," "it's the only way we can get in," "if you don't sign we will have to go another way and your neighbors won't get any money" etc.

 

You have no obligation to allow them to access your property. No road is ever temporary.  If you enjoy having your property halved into two and ruining whatever value it may have, by all means sign it.  Just remember they are not your friends or buddies.  Also remember that when trucks come in and out, they are bringing that toxic crap and spreading it throughout your property via their wheels that accumulate it at the site.

 

If you do decide to allow them to use your property make sure the contract is made by YOUR attorney and that it clearly states that the:

1. location of proposed road

2. road is non-permanent

3. that the land is only available for their use for a specified time i.e. two years

4. after the specified time frame the land needs to be returned to its natural condition

 

If they don't agree to that, then they have no intention of it being a temporary road.

 

You know sure well that the value of your property will decrease with a road cutting through the middle of it, so you really shouldn't even consider their proposition for a measly few thousand dollars.  Just tell them you are not interested and not to come back.

Permalink Reply by Barbara on June 17, 2012 at 7:45am

Could you explain what the "No Access Road" " clause means and how it should be worded in the agreement?  I am not sure what protection it provides to the land owner, thank you!

Permalink Reply by Barbara on August 24, 2011 at 3:49pm

I was able to help choose the path of my pipeline, but it still cuts my land in half, as well.  And it's coming any day now.................that's a fifty foot right of way; then they came wanting another twenty five feet for a gas line parallel to the gas line.  ugh.  Plus my  lawyer at the time did nothing to help me limit the number of lines, etc.....so 'they' have the right to dig whenever they want, to put in as many lines as they want, etc and not pay me a penny for the destruction. i DID requre a 'no access road' in my addenda.

 

I would have an attorney, for starters, and then see if you HAVE to allow the road.............they are wide.............and if you do, then try to have it put where YOU want it, and be sure to limit the lines to one gas line....or pay for more.

 

Just read a terrific book.............The End of Country  by Seamus McGraw......great story of how we got into all of this in the first place, and what's happening so far.  his mother has a farm near dimock. 

 

Good luck.............'they' have all the chips...........we are the players............but there are some things that can be written into addenda to help you a bit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ju

Permalink Reply by Joyce Marr on June 2, 2012 at 10:14am

We are being approached by a gas company for road access across our leased acreage.  The access is in a undesirable location.  I appreciate the information already captured under this subject, but I would also like to find our if anyone has proposed time limits to a gas company agreement; i.e., such as 2 years for an access road??

Permalink Reply by Clinton44 on June 2, 2012 at 11:55am

Do You have a lease with the driller who is going to be operating on the nighboring property?

If so have they indicated if you are in the drilling unit? If so it might be in your best interest to negotiate on the road issue because royalty payments will far out weigh whatever you will get for a road right of way... 

Permalink Reply by Joyce Marr on June 3, 2012 at 5:49am

Yes, but we don't know the # of acres involved.  Part of pad is on our property, but well is not.

To clarify, has anyone approached a road access right away agreement with rental terms instead of an up-front payment?   Example the standard offer is $5/ft. of road access, plus lumber value, and the road is utilized for as long as the well is producing for that one set payment.   Instead, has anyone ever been successful with a contract that requires a payment made every year the road is in service for the well site? (Say a fee of $xxxx/year.)

We have a requirement in our lease that says if a well head is on the property, a fee of $xxxx will be paid until it is removed. Therefore, the agreement language would be very similar, except it would apply for a road right away.

Also what is the going rate per ft.?  And what altered/damaged acreage should we anticipate (based on other leased owners who have undergone this proces)?

With a pad partially on the property, is it true that all property within a 680' circle of the well head must be included in the unit?
Should we request the information re the # of acres of our property that will be included in the unit before allowing (signing off on) the road especially since the proposed frack lines run away from the property?

Permalink Reply by Clinton44 on June 3, 2012 at 6:20am

Is there anything in your lease that pertains to access roads? If so, I would think both you and the driller would be bound by terms already agreed to by both parties in the lease.

Dont know about the 680 circle around the well head...

Yes I would request to know how many of your acres are in the unit, as well as how many horizontals they intend to drill so you can come up with some approximate royalty figures.

You state that all frack lines run away from your property, Do you have the well plats showing this??

All the roads that the gas companies have put in our area (Lycoming/ Clinton Counties) are well contructed and maintained, that however is not a consolation if you do not want a road through your property...  

Permalink Reply by Barbara on June 8, 2012 at 12:41pm

This has been very helpful information.  We are currently going through a similar process with a temporary road request.  We just found out they also want to include an area where they could turn around and park trucks,  a work station, all temporary.  They are  offering us $5 per linear foot for the temporary road (2 year contract, the 2 years start not at signing the contract but if and when they start the road so it could be in limbo for years) no lumber payment and nothing would be paid for this additional work station that could be over an acre in size.  We are 100% in the unit so we would like to see this well go to production but this contract seems very one sided and we do not want to sign it.   Our attorney has not been much help except making sure it states it is temporary but these payments seem low.  Any ideas or suggestions?  Thank you!

Permalink Reply by Clinton44 on June 8, 2012 at 12:49pm

Is the well pad itself going to be on your property??

Permalink Reply by Barbara on June 17, 2012 at 7:36am

No it is behind us, we are in the unit.

Permalink Reply by Frank Walker on June 13, 2012 at 7:54am

Barbara one or two suggestions.  And perhaps your attorney has already mentioned this:

Regardless the other specifics in the agreement, be sure there are significant penalties if they do not comply with it.  And in particular, be sure they agree to pay for all litigation.

Here is the problem:

With gas prices so very low now, gas companies are under duress and pressure.  Some are being forced to make strategic decisions they would not otherwise make.  Unfortunately, some of those decisions are motivated by the fact possible opponents have recourse only in court.  The gas companies know our courts are a mess.  And they know individual landowners are hesitant to engage in litigation because of the time and money it can cost, not to mention the ridiculous and endless appeals.  Bottom line is this:

The gas company might agree, in writing, to matters about which there is known (to them) uncertainty.  This they would do on a "hope for the best" basis.  If things don't work out, their attitude becomes:  "Sue us".

I am becoming aware of this, speaking in general, regarding minor aspects of leases, and especially when only a small number of Lessors is involved.  I'm not aware of gross violations of lease terms, or simultaneous violations against large numbers of Lessors . . numbers large enough to sue gasco under a class action.  I also believe, if gas prices were up where they should be, that the gas companies would be more likely to adhere to and follow agreements . . because they could afford much more easily to do so.  But that's not how things are today.  

 

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