We have 640 acres of land in Reeves county, Texas of which there are wells producing on it. We have been approached by a landman asking for a "Temporary pipeline right of way grant" they have offered us $10.00 per rod. We are wondering what the going rate might be for that area. Also the contract they sent over does not address any of the other concerns. i.e. damage to surface area, environment issues, reclamation, payments, restoration, etc. Please if possible give us some advise. Many Thanks
It sounds like you need an attorney to draft a counter proposal for you.
We were contacted by Energy Transfer Partners and were offered $85 / rod, but after some discussion settled at $100. / rod since, after some research, I found that it was more of the going rate. ETP gave no argument and raised the rate.
The easement contract addressed all of our concerns regarding surface issues and even provided us a nice survey plan for our records. (did not have a survey of our property before this). In doing my research, I found the Texas A&M website on oil and gas to be informative and provides sample surface contracts to better ask questions. I did not use an attorney, but worked with ETP on my concerns. They were very cooperative.
Hope this helps. See attached for a sample lease doc that has some tips. There may be other sample contracts elsewhere.
r / Fred, also in Reeves cty
2600-TexasSampleModelGasLease_201106.pdf (2.42 MB)