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Expert: Laura M. FitzGerald, CPL - 6/13/2009


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.

---------- FOLLOW-UP ----------

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.

Our tel no is: 318-219-2464.

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Laura M. FitzGerald, CPL

Expertise

PLEASE READ CAREFULLY BEFORE SUBMITTING A QUESTION. I can answer all questions related to oil and gas ownership, mineral interests and working interests concerning the leasing and selling of your minerals, any questions concerning pipeline ROW's, units with the Louisiana Department of Conservation; pooling provisions, depth limitations, vertical or horizontal pugh clauses; and oil and gas terminology. I can offer assistance in negotiating for leasing your property, assisting in locating owners of suspended funds. I am only able to answer questions regarding oil and gas leases, minerals, royalties, or offers to purchase mineral/royalty interests if I have complete information. Please provide a full legal description for your interest(s). If the question pertains to a lease, please include all terms of any current (or desired) lease offers, including lease bonus amount, royalty and lease term. If the question is regarding a mineral or royalty interest offer to purchase, please provide the offer amount, date of offer, other offer terms, and further details on the mineral/royalty interest, such as lease terms, and if producing, the average monthly income. Since I receive numerous inquiries daily, I am only able to answer your questions efficiently and effectively if I have complete information. I must decline any questions submitted with incomplete information. If your question is non-technical in nature and you simply need assistance understanding an oil and gas matter, please submit your question with as much information and detail as possible. Any background information that has led to your question is also very helpful.

Experience

I have over 26 years experience as an Independent Petroleum Landman. I became a Landman after working as a paralegal for Oil & Gas Attorneys for 8 years. My first 2 years were spent specializing in Well History and Research with the Louisiana Department of Conservation, then moving into clearing title defects and handling title curative for oil and gas properties for the next 6 years. Subsequent thereto, I handled title issues, buying oil and gas leases and settling surface damages. I also acquired acreage for drilling prospects in excess of 10,000 acres. I also became a mineral/royalty owner commencing in 2004 and have found that I can help many people when they have reached the point in their lives they feel converting their minerals or royalties into a cash asset benefits them.

Organizations
American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Certified by the Women's Business Enterprise National Council (WBENC)- South. This certification is one of the most widely recognized and respected certifications in the nation. This designation is reserved for only those women-led businesses that exemplify the characteristics of integrity and professionalism to which the WBENC adheres to so strictly.

Education/Credentials
Attended LSU, became a Certified Professional Landman in 1994; Notary Public with dual authority in multiple parishes in North Louisiana; Bilingual in English and Greek

Awards and Honors
Expert Oil & Gas Professional assisting attorneys representing landowners. Involved in 2 lawsuits and both suits were awarded to the landowner.

Past/Present Clients
Consultant Landman for Texas Oil & Gas (TXO Production Corp.), Anadarko Petroleum, Comstock Resources,Independent Geologists, Pipeline ROW Clients, and Oil & Gas Attorneys. For the past 2 years my practice is limited to advocacy for the landowner. I also assist royalty owners recover suspended payments or incorrect royalty payments.

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