Gas Well / Right of way - Posted by Jim

Posted by Jack-E on April 03, 2009 at 14:34:09:

I am not too clear whether you are talking about just a right of way to some one else’s property or whether they wish to drill a well on your property or on adjacent property that will affect your own mineral rights? Be very careful here. O&G companies are notorious for taking every possible advantage they can of the mineral rights or land rights owner.

If the amount involved is worth it, you may need a really good O&G lawyer who specializes in protecting the land/mineral rights owner. If not, be sure you are well acquainted with the prevailing pricing in the area. Find out what the top bonus amounts per acre are being paid, that’s just for the right to drill and the amount of owner production pay outs being received, i.e. 1/8; 3/16; 1/4 etc. You need to understand, if you already do not that the O&G companies get the majority amount 1/8; 3/4 etc and the land/mineral rights owner who owns the gas or oil is left holding the bag for the remainder.

If you can negotiate a 1/8; 3/16/or 1/4 overide for yourself on top of everything else, which comes out of the O&G Co’s profits you should. Hold out for it, as they would pay the same amount to anyone who leased your property, so they might as well pay you instead. I have fought O&G Companies for 50 years, so I have necessarily learned a lot. Good luck and let us know how it comes out. As you can probably tell, this is one of my favorite subjects as I have studied it for many years. If I can help you or any one else on this site, in any further way let me know on this site. Jack

Gas Well / Right of way - Posted by Jim

Posted by Jim on March 24, 2009 at 13:34:40:

We have a 15 acre hunting camp. I was approached by a drilling company who said they plan to put some gas wells below our property. The ideal access is over our land which may or may not be a right of way. He said they are researching it.

If there is a recorded right of way, do we get compensated for going over our land? They will take a quad trail and make it into a road suitable for an tractor trailer.

If there is no right of way, can we make them go a different route?

Any insight is appreciated.
Jim
Pennsylvania

Re: Gas Well / Right of way/Offset-Problem - Posted by Jack-E

Posted by Jack-E on May 13, 2009 at 15:09:29:

If you are also a mineral rights owner of the land, another question may be how can you make them drill a well in which you as a mineral rights owner will have an interest? Otherwise they will drain your land of the oil and gas that belongs rightfully to you and you will get nothing. Oil and Gas companies do this all the time. You may need a good O&G mineral rights attorney to get them to do it. In this day and age it can amount to a considerable amount of money. I am currently involved in just such a problem. It involves thousands of dollars. If you need any advice let me know.

Re: Gas Well / Right of way - Posted by jack-E

Posted by jack-E on March 25, 2009 at 15:06:42:

If you give them a right of way, signed and documented they should owe you you for damages to your property. Make sure that is in the right of way document. It should be a negotiated amount and you should hold out for a generous amount. I have been through this.