Delago Oil has offfered us $5000.00 an acre for a pad sight and they want to put in a pipeline to transport gas from this sight and have only offered us $6.00 a foot for this pipeline. This seems unreasonable low for a pipeline. Has anyone else been dealing with Delago in Dewitt County outside of Yoakum.
http://www.utlands.utsystem.edu/OilGas
The University of Texas has some good rate and damage schedules. You might start with that. Here is the link. http://www.utlands.utsystem.edu/Content/Documents/Operations/Rate_Damage_Schedule.pdf
Assuming these are flow lines not a large gas transmission line? Delago is a front for a bigger operator who is working on a down-dip Austin Chalk play in your area. These are likely to be very gassy wells with minimal liquids. The flow lines are necessary to get gas to market and that seems like a reasonable price. Pad site damage is pretty standard although I would attempt to negotiate it at a per acre rate e.g. $1500 p/a. Pad sites can be rather large nowadays.
Also, if you are mineral owner it helps to conceptualize the flow line easements as a necessary component of a partnership with the operator. This is an unproven play. To a degree, you want the operator to be successful so that further development occurs. Operators need to make reasonable surface use agreements to facilitate expensive appraisal-well plans.
If you are not a mineral owner (only surface), a company offering a SUA is the equivalent of a olive branch. Your negotiating leverage is capped at the companies propensity to put up with surface owner demands. The mineral estate is dominant over the surface estate and they have no obligation to offer you a SUA. They would have to pay “comparable damages” which may be more or less than $5000 per pad and $6 per rod. Likely less, and believe me you don’t want to pay legal expenses just to find out.
Thanks for the information. This is a very helpful website.
Thanks for the information. I assume these are flow lines used to transport gas from this well sight. We are going to speak to our attorney about similar offers in the area. Also, we have a good network with neighboring land owners. Thanks again.
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