Have oil company that is going to drill a horizontal well on section on other side of road. But wants an easement to loop over onto my side in order to make the turn horizontally, an get all the perforations that they are allowed on their side. They want to come over on my side 135’ in order to make the turn, as their drilling pad is on their section that they are drilling on. How common is this? It sounds reasonable to me, but what should i be considering? As this will be 7000- 8000 ft below ground, is their a concern i should be thinking of? Will it be a problem for oil company on my side, should they want to drill their? They are offering $1000 for this, which i think they would pay more. What is or would be a fair price? thanks for any help.
First, this is an pipeline ROW which is simply deeper under your surface. You should be paid at least the going rate per rod (16-1/2 feet) in your area. The 135 feet is most likely in and then 135 feet out, plus the arc of curve, so ask for the total length under your surface. I would certainly expect well over $1,000. Second, you should contact your oil company lessee to make sure that this will not interfere with a location and production of your minerals. There may be a limited number of locations to drill on your side and any well will be precluded from interfering with the underground wellbore. It is possible that you oil lessee will want to get a similar deal with respect to the surface on the adjacent tract. Will the offset operator object to allowing your lessee to do this?
thanks for the reply. Useful information.