Advice on Surface Damage Agreement.

filbert

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I received a letter from an oil drilling company that wants me to sign a Surface Damage Agreement on some property I own. Does anyone here know anything about these agreements? Like what is the going rate? Is it a permanent agreement? Should I get an attorney? They refer to a "rod". Any help would be appreciated. Thanks
 

cowadle

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a rod is 16.5 feet. the agreement can be permanent and most likely will be unless you negotiate term limits. you should ask for things like any fence repair or clean up replanting and drainage. egress agreements setbacks from buildings etc etc etc. anything you can think of and be specific. i usually put in a clause about seismic work that they have to get my permission etc. make sure if pipe line is part of the agreement you limit the specific number of lines and not just pipelines plural. get a lawyer
 

filbert

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a rod is 16.5 feet. the agreement can be permanent and most likely will be unless you negotiate term limits. you should ask for things like any fence repair or clean up replanting and drainage. egress agreements setbacks from buildings etc etc etc. anything you can think of and be specific. i usually put in a clause about seismic work that they have to get my permission etc. make sure if pipe line is part of the agreement you limit the specific number of lines and not just pipelines plural. get a lawyer
Do you know an attorney?
 

trekrok

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Do I have to sign an agreement?
Don't have to, but they'll get access one way or another if they really want to, or need to. Mineral is the dominant estate. They can always file under surface damage act if they can't get an agreement. I'd recommend taking the agreement to an attorney with some relevant experience.

Are they wanting a drilling location, road or pipeline?
 

dennishoddy

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Get a Lawyer familiar with pipeline surface damages. There are lots of clauses left out of the standard contracts that could be important later, and it's typically a lowball price that most landowners just sign. We doubled what the original offer was and they never blinked an eye when handing over the check.
I was in your boat a few years back when the pipe liners wanted to put a line across our gun range at Ponca to some tank batteries on the other side of our range. They were going to need access to those tank batteries with trucks, so we had the lawyer specify that the gate had to be locked on their way in and relocked after they left. PIA for the drivers but it was a private membership and didn't want people following a truck in. They also had to run electric across the property, so we requested they set poles where we wanted them for future expansion. The roads had to be built with certain materials with drainage set to protect our property, and the list goes on.
You need to have protection for spills that calls out what they are expected to do for a cleanup, and what they will do to clean up the property if they abandon the pipeline or tank batteries, or whatever.
This is why you need a lawyer. It's to protect your property.
 

Shinneryfarmer

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With road, location or pipeline always make sure there is a clause if ever abandoned they have to restore it to it's original natural state. My uncle had this clause in one of his agreements for a location. 30 yrs later they plugged the well but didnt want to restore the hill back they tore down to build the location. They finally settled with him for $80k cause they hauled the dirt out and it would exceeded that amount to truck dirt in to reconstruct it.
 

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