Oil company wants to put water line on my property

Oklahoma Mineral Rights Canadian County, OK
1

An oil company is drilling several wells a mile North of my property and wants to lay the line about 2 acres on my property…they are offering $500. Is that a good offer?

2

Dear Ms. Walker,

We need a bit more information, such as:

How long the water line will be there.

How many rods does it cover.

Is the line going to be buried (probably not).

And so forth.

Best,

Buddy Cotten

3

No that is not a good offer. You may be in a very good position to bargain for everything from price, terms, perhaps even an overriding royalty interest if you play your cards right.

4

Thanks for the reply. I just received the contract which does not list the time frame. Also, what is a rod?

I appreciate your time and expertise

5

Thanks for the reply. How much of an override would you suggest?

Thanks again

6

I would ask for 3% of 8/8 & negotiate from there. I imagine however, that the company would much rather pay a set fee.

7

Especially since this is a 2 acre tract that they could go around.