what is the going rate to allow testing on your property? we just recieved a letter from TGS wanting to run seismic on our property . thanks for any help S. Keller
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I received a written offer from TGS a couple of weeks ago for $5.00 an acre. I told them no thanks and have not heard from them since.
5.00 per acre here in Winterset area. 18 month contract , walk on only addendum added . Don't know if it will help or not. Contact agent says they will probably do it starting late September . Everyone has signed by me. Some contacted lawyers first for advice and were given the ok.
About a year ago, Global Geophysical did an almost identical seismic test program over much of Harrison Co., OH, and paid $10/acre. Now TGS wants to essentially repeat this testing but is offering only $5/acre. I told the TGS landman that if the data was worth $10/acre to Global's client, then the same data should be worth $10/acre to TGS's client.
Considering the extra hassle to me of water testing, livestock control, damage inspection, crop evaluation, attorney review, etc., it's all not worth my time for only $5/acre.
So far, I've heard nothing more from TGS.
Blowing smoke out their rear ends.
My first response would be to shove the barrel of a 12ga as far up their collective rear ends as their heads are . That would be satisfying but not really legal .
I would contact the State AG's office asap & document any and all interactions with them, either on paper or video/audio . Record all phone calls as well . If you have a lawyer , consult them asap as well.
They cannot use your land for testing without your permission . No way , no how. They would just have to under shoot your land .
Keep us updated & best of luck.
Does it say in the lease that their allowed. I think that's the key to it Mickey. If it says they can then they will probably be allowed.
Understood if it is through their lease, but around me ( Winterset Twp ) , a guy working as a contractor for the seismic testing company went to my bro in laws property first , and he was lead to believe the guy was from the leasing oil company . My Bro in Law didn't ask the right questions . He came to me next , and I did ask . After some hesitation he showed me two pictures of the units they would use and a one paragraph contract good for 18 months . The company he represented is legit but his tactics would make a used car salesman look like a pastor . I sent him away , told him to come back in a few weeks. He did ! Persistent if nothing else , but after talking and doing some snooping I signed . Only 9 acres so they won't be blowing anything up here .
The lady that called us said that it falls under "exploration" in our lease.
So I would guess the Seismic company is an agent for your leasing company . The guy who came to us is totally independent from our O&G company , Gulfport .
Is the person doing the testing associated with your O&G lease ? I would double check with them IN WRITING , before letting anyone do anything .
They have a letter from CHK saying they have permission to do it. But I'm waiting on a letter from CHK saying so, directly to me . Tired of all the bullshit stories
You are exactly right to do it that way. These seismic folks seem to be lower than used car salesmen in Cleveland.
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