Anyone have experience with Seismic Permits?

Guest Too · #1 10/09/07, 08:45 PM

I received a letter in the mail from an Oil & Gas company wanting to do Seismic survey on our land. Just wondering if there's some standard amount & stipulations to one of these contracts. They are offering $10/acre. Been reading a bit on the internet and looks like there might be some concern as to how close they get to amy water well. This thing is pretty open ended. 2 year expiration date and says something about including any minerals I might own.

Thanks for any insight you might have on this!

MELOC · #2 10/09/07, 09:02 PM

hmmm...i would be very cautious about accepting that. i would also find out who owns the mineral rights for your property. consider getting a lawyer. it may benefit you eventually.

js2743 · #3 10/09/07, 10:33 PM

if this includes ,if they find any thing they get to drill and get the oil and or gas then you are getting a really bad deal. just think if they found something and you have the rights to it and you sell it for $10 acre. i agree with getting a lawyer if they are serious about it. you might just be on top of a lil pot black gold.

cseger1 · #4 10/10/07, 09:43 AM

We allowed a seismic survey - same price. It did NOT include mineral rights or other - just allowed them to do the survey. See if you can get the paperwork amended for that.

We have also leased mineral (oil/gas) rights for 18 months to another company. NO equipment on our land. Ever. We have been assured by locals who have seen these companies every few years that they will not find anything, but our contract would give us an interest if they did. ...I suspect we're just part of some tax write off for the company.

NChemungGuy · #5 10/12/07, 02:15 PM

Don't do it ! They want to do seismic testing, they can do it without having rights to your land for whatever period of time after they are done.

Also, negotiate, even with simple seismic testing. Most around here signed the standard permit. However our neighbor, the president of the county Farm Bureau had them draft a special permit for him and we used the same one. It kept them from retaining the rights, also made them liable for any damage to crops, timber, fences, etc. Also it specified they would remove all flagging when done as well as set a finite date for operations. Any days after the specified date, they would have to pay by the day.

You can bet they were in and out on time, and no damage or anything left behind. And I didn't cash the check until I was sure of it.

Be very wary when dealing with the landmen. They can be smooth operators and will tell you how rich you will get, and that the "standard contract" is all they can offer you. Well I am here to tell you there is no such thing. You can negotiate, and if they don't want to, show them the door. Many around here signed on for 12 % royalties because the landman told them that was the standard and all they would ever see. Then another moved in and is paying 18.75%. A new company has just come to town and they are offering 25% royalties.

Have any contract looked at by a lawyer specializing in mineral rights. I say that because many attorneys don't know anything about the subject. Also, check with your local Farm Bureau. Here in Chemung County NY, our president is one of the leading authorities on mineral rights and has attorneys calling HIM for advice.

It's a great opportunity for you and your family, but you have to educate yourself and be very careful about covering all your bases. Good luck!

cseger1 · #6 10/12/07, 02:40 PM

Our royalties are 21%. When the price of oil gets above $100pb, I think they'll start looking harder.

Alice In TX/MO · #7 10/12/07, 05:18 PM

Some of the info by previous posters is not correct.

Find an attorney in your area who does oil and gas work. He or she should know who else got the letters, and you can work together and cut a better deal than they offer individually.

Rose, whose husband is a consulting petroleum engineer (who does everything from reservoir to production), and his company has oil and gas investments, and we've had seismic done on our place more than once.

(Edited to add: Hubby is VERY busy now that the price of crude is up. More of you in areas with what used to be 'marginal' production capabilities will be hearing from land men. ALWAYS get an experienced lawyer. Always.)