Surface use agreement

Surface Owner Issues
1

Hello Everyone,

I got a proposal to lease my property in Culberson County in a producing section. I need help with how much to charge for each Well Location, Construction materials to be used, Pipeline (per rod), New Road Construction (Per rod), Power Line (per rod) and water (per barrel).

I would really appreciate any and all suggestions to any of the items mentioned.

Remain Blessed.

2

Look at Rate and Damage Schedule for University of Texas System. Well site damages is based on well depth - vertical plus horizontal leg - up to certain number of acres. Additional acreage priced per square foot. See pipeline and electric line rates, but note that this is for 10 years with additional compensation every ten years. Never give permanent easement; instead terminate with cessation of use for some period such as one year. Have a good legal agreement prepared which spells out the parties rights, limitations and your protection from any problems arising from operations.

3

http://www.utlands.utsystem.edu/forms/pdfs/Rate_Damage_Schedule.pdf

Here is the link.

4

Thank you guys!!!!!!!! You have been very helpful. I really appreciate.

Have a wonderful weekend.

5

As to the damage schedule, i had a landman/row agent insist that the $24.00 per rod that he offered was fair because that is what the aforesaid rate schedule provided for on lines less than 6" in diameter.

I told him to go read it again. It says NEGOTIABLE, but not less than $24.00 per rod. He also forgot to mention that the UT rate was for a term no longer than 10 years.

We ended up settling at $165 per rod, which he said was the highest in the 181 mile gathering system.

Be cautious in letting UT be your ceiling. It is a very common ploy by field agents against landowners who are not skilled in negotiation.

I told the agent that the lands belonged to my client and not UT and we were free to do with them as we pleased. I gave them one week to agree and then the price per rod goes to $200.00 per rod and told them that they were free to negotiate as long as they wished.

I just love it when they do not have condemnation rights.

Best

Buddy Cotten
6

I agree with Buddy. The UT Lands schedule should be treated as a floor. You can start at multiples higher.