Eminent Domain? Another pipeline through our property

Landman, or whomever, don't have all the particulars yet.  My partner (part-owner, not to be confused) said they had left several messages on phone that we never returned...  Anyway, they made an "offer we couldn't refuse as they marked the area for another pipeline through property.   Likewise, we are going to lose area due to "right of way".  When asked what can we do, can we fight it,  landman or whomever said "honestly no".  If wondering....  Less than $1 per foot!!!!!

 

Any ideas anyone!!!!

Views: 2190

Replies to This Discussion

Permalink Reply by Ann Ticopa on November 14, 2011 at 10:27am

At least in TC, most (all?) current leases are "paid-up".  The signing bonus and annual rental for the term of the lease is paid upfront, in one lump sum.  Five+ years ago, a lease might have been $50/$5/12.5%.  That is, $50/acre signing bonus, $5/acre annual rental, and 1/8 royalty. 

Don't expect anything approaching $5,000 per acre in most of TC.  For the past year or so, SWEPI (Shell) has been offering $2,000 bonus and 15% royalty.

The usual lease term is five years.  HOWEVER, read any lease you are offered very carefully to see under what conditions the term of the lease can be extended. 

Permalink Reply by Lynn Wigglesworth on November 14, 2011 at 2:53pm

As Ann said, today most leases in TC have the bonus/upfront money paid in a lump sum. Shell's standard offer is $2000 per acre paid up front/15% royalty/5 year lease. The chances of a lease expiring are pretty remote these days. The company will see that you are in a unit before the 5 years are up; once you are in a unit (whether it is producing or not) your lease is 'held'. You are locked into that lease with no additional bonus money. Hopefully, if you are in a unit, the well will soon be producing and you will soon get regular royalty payments.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service