I have received a SEISMIC PERMIT REQUEST in the mail from a land man named Heath Harris representing Venture Oil & Gas, Inc in Petal Mississippi. The request references Prospect: WPC 3D, Permit 1717, Date: 05/26/2019.
The permit request is for two parcels that total 40 acres that my wife and I own located in the NW-4 SE-4 in Section 35, Township 7 North, Range 14 West, First Judicial District, Jones County, Mississippi.
This is a one page document very very loosely written asking for an 18 month period to conduct the exploration and only paying at the time their 3D seismic contractor crosses our property. No references to compensation for damages and a general statement to indemnify and hold harmless.
They are offering $10.00 per acre as compensation for the permit, which seems very low.
Could someone please direct me to resources for the language that should be included in this type of permit?
The going compensation rate to the land owner for granting the permit?
I’ve got no experience with Mississippi but assuming seismic permits in Texas are similar to your state, here are some questions and suggestion you might want to get into with the permit agent before going any further:
Is your land under lease and is this seismic work being done for your lessee? If not, you shouldn’t have any obligation to let them enter your property. If they won’t agree to the payment and permit provisions you think are logical you can decline. Ask for the names of the clients the work is being done for and for a map showing the area the proposed project covers. It’s possible they don’t have a client and this is just a speculative project.
Will the work that is covered by the permit be done using Vibroseis (thumper trucks) or the old shot hole method? Thumper trucks are heavy and can cause surface damage particularly if work is done during wet periods. Shot holes can damage water wells. The permit should pin down the method used, and in the case of Vibroseis say no work will be done during wet periods that could cause ruts, or with shot holes, say no holes will be drilled within an agreed distance from any water wells.
Hard to say what a fair price is for your area. If possible, talk to your neighbors or big landowners in your area, see what they have been offered and if they haven’t signed yet suggest negotiating as a group. In Texas $20-30 per acre seems pretty common. An 18 month term also seems excessive. You can tell them to come back and talk to you when they can accept a 6 month term and require receiving your payment before anyone enters your property. Seismic company’s like to write permits in a way that makes the payment received for the permit the total potential damages but if you have water wells, valuable improvements or improved pastures that could be seriously damaged by ruts require the permit to say payment for those types of damages will be in addition to what you receive for signing the permit.