Input on Mineral Drilling & Habitat/Wildlife Affect

Discussion in 'General Hunting' started by Suburbhunter, Dec 22, 2017.

  1. Suburbhunter

    Suburbhunter Fawn

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    Jun 9, 2017
    Butler Co
    I have been looking for the right piece land for over a year. I am considering purchasing a property, 133 ac, in west central ky for hunting, habitat improvement for deer and turkey and very likely relocating to live on in the next 6-8 years. It has what I am looking for, some tillable acres for planting/orchards, thick cover, water, good access points, electric on property, road frontage, etc...
    My only hangup is the mineral rights lease is in the middle of a 5 year term with 2 1/2 years to go per the current owner. No drilling or exploration was done during the first 2 1/2 years. The land has not been touched by the oil & gas company so far. The owner is a timber company and it was select cut about 5 years ago. The current owner is willing to let the mineral rights go with the sale of the property. A few folks have said they would not be worried about future drilling and if they haven't drilled it by now chances are small on future drilling, I'm not that naive.
    So my concern is I would hate getting a property just the way I want it with sweat equity and money or worse, building a house/cabin then a drilling rig show up to drill. I feel like I would have little if any say about their operation. I know every company is different and I have been educating myself prior to pulling the buy trigger.

    Who has experience on working with mineral drilling companies and what should I expect?

    Do they work with landowners or do they say this is where we are drilling and placing the holding tank and that's it, regardless of where or what you have done to improve a property or plan to do in the future? I know they have to/should/suppose to/repair surface damage.

    What effect may it have on the wildlife use and movement?

    Thanks in advance. D
     
  2. Feedman

    Feedman Cyber-Hunter

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    In the basement
    You probably need to see a copy of the actual lease. I don't think they can drill within 200 feet of the property line.
     
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  3. hondo1892

    hondo1892 6 pointer

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    Dec 20, 2014
    North of Lake Cumberland
    From what I've been told by others that have leased their mineral rights the company has rights to minerals but not the top side of the land. You would need to see the contract to know for sure. A company can have the rights to the minerals under your property but they can't come on to your place and start drill or digging without your permission if the contract is written that way. If the contract gives them unlimited access then they can do pretty much what they want.
     
  4. JDMiller

    JDMiller 12 pointer

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    " Between the Rivers "
    On my farm in north Christian... they drilled a gas well on the adjoining property... which the well sits maybe 150 yds from our property line. It’s had -0- effect on wildlife after the well is up & running.

    Which just my opinion it’s access to the well is more an issue . Being whatever company contracted will need to get to the well periodically. Which they will put in the road and maintain it... but they have access anytime they want. How this coincides with your hunting or recreation in general is a tad up in the air. But from what I’ve seen it’s not that much an issue.

    Which north Christian county and most surrounding counties in that part of the state .. there’s countless oil & gas wells scattered about. I’ve never really heard much complaint.

    Also.. on our place.. some of the property we have mineral rights other parts we don’t. As we bought several parcels adjoining us through the years and they didn’t want to sell the mineral rights.

    When the gas well went in on the property adjoining us.. we talked to the company at length. Accordingly there’s distance requirements between wells. Most of our place is relatively safe from drilling on the sections we don’t have the mineral rights on because of the existing well. The next prescribed distance for future drilling puts it on where we have mineral rights.

    But.. the access issue is the driving force for us not to pursue it at this time. Which it means a potential cash flow “if” the oil or gas is there. But sometimes money isn’t everything.

    I’d find a contact with the drilling company and discuss it .. if it comes down to that. They can answer a lot of question and alleviate some concern.

    It wouldn’t be a deal breaker for me personally.. but everybody’s situation & property is different.
     
  5. Giveem3outdoors

    Giveem3outdoors 12 pointer

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    ohio county ky
    I'm in Ohio county our farm is released every 5 years they pay again and I've never seen them step foot on the property.
     
  6. Suburbhunter

    Suburbhunter Fawn

    21
    3
    Jun 9, 2017
    Butler Co
    Does your lease renew automatically or is it re-negotiated every time? How many times has it been renewed?
     
  7. KYote-Krusher

    KYote-Krusher 10 pointer

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    Jan 12, 2006
    South Central Kentucky
    Nobody I know of in the oil or gas business wants to have anything but a good relationship with the surface owner and most will go out of their way to maintain a cordial coexistance. That being said, I'm sure that somewhere out there, there are @zzhole oilmen that try to run roughshod over a land owner but I've never met one.

    The only time you are apt to come in conflict with an oilman is when the initial drilling or a workover is taking place and even then they'll be gone in a few days, weeks or months, depending on how deep the well is, and after that they only show up to check the well(s) and make sure everything is working as it should.

    I take care of several oil leases that are also leased to hunters and I go out of my way to accomodate them, things like staying away during the early morning and late hours during hunting seasons and avoiding the leases altogether on weekends, if possble. If I have to be there, I'll give them a courtesy call and work it out as best we can. They in turn keep an eye on my stuff when I'm not around. Works out real well for both of us.

    Things like tank locations, access roads, etc. can almost always be worked out to everyone's satisfaction.

    HOWEVER ..... whatever kind of a lease has been signed for the mineral rights is what will dictate in any kind of conflict. A "Standard" Kentucky lease is pretty fair to both sides but it does give the people who invest in the wells the rights of entry and egress and the right to maintain equipment and storage on the land if necessary. It also gives them the right to drill anywhere on the property as dictated by State mandated guidelines. I "think" no oil well can be drilled within 200' of a house or barn without the landowner's permission but most drillers wouldn't want to drill that close anyway unless there was a monster well within striking distance. Check with the Kentucky State Division of Oil and Gas for current regulations. Lease renewal rights should also be outlined in the original lease. You can get a copy of the lease at the county courthouse and see for yourself what it says.

    Another thing you'll be happy to hear, once all the drilling and completion activities have settled down, the animals get so used to the equipment running and the people who maintain the wells that they barely pay attention to them. I practically have to run over the deer and turkeys on my lease roads to get them out of my way because they know me and my truck so well.

    If I had any questions about what might happen, I'd get hold of the people that currently own the mineral rights and ask them what their plans are, if any, they might even sell the mineral rights and/or the lease to you.

    Good luck.
     
    Last edited: Dec 25, 2017
  8. Capttrae

    Capttrae 12 pointer

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    Apr 2, 2012
    There's a reason it hasn't been touched. Oil and gas prices suck right now and have for the past 3 years. They are not forecasted to go up much either untill late 2018 or 2019, and then the first thing they are going to do is reopen the wells they started but didn't finish. So you are most likley looking at a non issue. If you did get the mineral rights and they do decide to drill, if they hit it could be a nice paycheck for you.
     
  9. davers

    davers 10 pointer

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    Jul 14, 2014
    Kentucky
    My advice is to inform the sellers that you want mineral rights to the property or no deal. When I bought my property I made this stipulation that If I bought the property with money-in-hand that I would retain ALL property including mineral rights above & below the ground. Also we had title insurance which locks in your purchase.
     
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  10. Giveem3outdoors

    Giveem3outdoors 12 pointer

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    Jan 18, 2009
    ohio county ky
    Re negotiated every time. If you don't haggle with them you get screwed. If they come in and set up a rig or whatever it cost like a million bucks or something of that nature in the original proposal you don't make anything per barrel until they are free and clear renegotiate with them and you'l start getting paid from the first barrel on. Like I said I highly highly doubt they ever show up but if they do I want to make the most of it.
     
  11. KYote-Krusher

    KYote-Krusher 10 pointer

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    Jan 12, 2006
    South Central Kentucky
    Good GRIEF!! If you signed a deal that let them deduct their expenses before you saw any money ... you got SCREWED!! The industry standard deal is a 12 1/2% Royalty Interest (NO EXPENSES) to the landowner, starting with the first GALLON produced.
     
  12. KYote-Krusher

    KYote-Krusher 10 pointer

    1,388
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    Jan 12, 2006
    South Central Kentucky
    Folks, just a word of free advice (we all know what that's worth) to anybody that signs ANYTHING of any importance when you don't have any previous experience in that field, "Let an Attorney, that is familiar with whatever type of agreement you're entering into, check it, before you sign it!"

    Everybody "thinks" they can handle any situation they run into without making a serious mistake but when you start signing lease agreements, loan agreements, purchase agreements, etc. you'd better know what the Hell you're doing.

    A classic story in the oil business is the landowner that listened to the oilman's pitch and said, "OK, I'll lease it to you but you're not gonna' screw me, by cracky, I won't take an EIGHTH (12 1/2%) I want a SIXTEENTH (6 1/4%)!!" Oilman says, "OK, brother, you got it, you're obviously way too smart for me; sign here!" :cool:
     
    Last edited: Dec 26, 2017
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  13. Giveem3outdoors

    Giveem3outdoors 12 pointer

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    Jan 18, 2009
    ohio county ky
    That's why you read before you sign as I said renegotiate if you sign the first thing they hand you you're probably screwed
     

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