AboutLaura M. FitzGerald, CPL Expertise I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.
Experience 26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells
Organizations American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)
Education/Credentials Certified Professional Landman, attended LSU, Notary Public
Question QUESTION: We have approximately 1/2 mile of unpaved road that an oil operator wants to us to service his new well. His pumper will be using the road to direct water and oil hauling and other services on a weekly basis. We have no royality interest in his well therefore; we want to lease this road to him. What is the going rate for such services or what would you consider a reasonable annual fee for allowing the use of the road.
Thanks in advance for you help.
ANSWER: You did not indicate the real estate for this property, but you should do so in order to determine what value is placed on the property. Also, you should protect yourself by having this Road Use Agreement in writing, between the parties, and stipulate how the road will be maintained because the heavy road traffic will tear up the road. You can specify the type of rock the road should be paved with and the maintenance schedule for this road. Also, if you have livestock on adjoining property, be sure and request fencing around the perimeter of the road.
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QUESTION: The road in question is located in a rural area of North Louisiana near the village of Rodessa. The road passes through a heavily wooded area with no inhabitants near by. If you can give us a general idea of an annual fee for using this road for oil field activities it will help.
Thanks again!!
Answer Your email indicates the property is 'heavily wooded' and consequently, you should have a timber appraiser give you a value of the timber that will be destroyed - so that the company can pay you the amount of the timber in 'damages', along with the damages for the 'use of the road'.
I do not know the market value of your property. However, if you take the value of the property per acre, and then have the company give you a survey of the property they propose to use for the road, which should then give you an exact acreage amount - you can then multiply the market value per acre times the amount of acreage the company will use - and that should be within a reasonable value.
Also, be sure they indicate on your check, when they pay you for this road use, that the monies are for 'damages' because you will not be taxed for 'damages'.
If you need more help than this, I will be happy to negotiate and speak with the company representative on your behalf. However, you will need to call my office and speak with Holly if you want us to do this.
