I own some surface in Elk Hills CA. where ALL the major companies are drilling these days like crazy. Any idea how the compensation should be calculated?
Avi Karpel
Avi:
I am uncertain what compensation you might be seeking for use of the surface. I presume that you are a severed surface owner. Typcially, the mineral interest owners have the right to use the surface to explore and produce oil and gas. This would be without compensation to the surface owner. Of course, if the surface is damaged you are entitled to compensation. In addition, many oil companies will enter into agreements with the surface owners if they wish to use the surface in a manner that is outside of the rights held by the mineral owners.
Hope this helps.
Jean M. Pledger
Hi Mr. Pledger,
Thank you for your respond.
I thought that the mineral owner in order to drill need the surface owner permission (even though it is a vacant land with no real damage to it).
I thought they will need a consent which will bring an agreement such as to pay the surface owner a small portion of the output., otherwise (and I may be wrong), it looks like the mineral owner can do anything they want as these mineral rights supercedes any other rights)
Avi Karpel
Avi, I think you should receive payment/damages for loss of use of the pad and road and possibly pipeline easements. I would look at my deed to see if the previous owner retained any other rights than to produce the minerals and ingress/egress. If the property was subject to an oil and gas lease at the time of purchase you would want to see a copy of the lease as well. I'm certainly not a lawyer but if you bought the surface subject to an o&g lease and in the lease the previous owner had already granted an easement for a pipeline, I don't think you are going to get paid except for the temporary loss of use from installing the pipeline and or possibly diminished value of the property from having a pipeline on it.