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Oil and Gas at Your Door? (2005 Edition) - Earthworks

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SURFACE USE AGREEMENTS<br />

Reported Compens<strong>at</strong>ion Amounts<br />

The following inform<strong>at</strong>ion comes l<strong>and</strong>owners, real est<strong>at</strong>e brokers, <strong>at</strong>torneys, mineral royalty<br />

associ<strong>at</strong>ions, <strong>and</strong> community organiz<strong>at</strong>ions. 461 This inform<strong>at</strong>ion is meant to provide surface<br />

owners with an idea of wh<strong>at</strong> others have been able to negoti<strong>at</strong>e in various parts of the country.<br />

The chart is by no means comprehensive — undoubtedly, some surface owners in these areas<br />

receive more or less compens<strong>at</strong>ion based on their particular circumstances.<br />

Loc<strong>at</strong>ion Item Compens<strong>at</strong>ion<br />

Sublette County, WY Surface damage payment per well $2,500<br />

Wyoming<br />

Wyoming<br />

Weld County, CO<br />

La Pl<strong>at</strong>a County, CO<br />

Las Animas County,<br />

CO<br />

Oklahoma<br />

Kansas<br />

Initial payment per well site (1/2 acre)<br />

Annual payment<br />

Use of existing roads<br />

Initial payment per well<br />

Roads <strong>and</strong> pipelines<br />

4” pipeline – initial payment<br />

4” pipeline – annual payment<br />

8” pipeline – initial payment<br />

8” pipeline – annual payment<br />

Surface damage payment per well site<br />

(2 acres)<br />

4” pipeline<br />

Surface damage payment per well<br />

(well site 6/10 acre), plus payments for<br />

roads, pipelines <strong>and</strong> compressor sites<br />

16” inch pipelines<br />

Well site (7/10 acre)<br />

Access road<br />

Payment for well pad <strong>and</strong> access road<br />

(appraised value)<br />

Well site damages<br />

8” pipeline<br />

$1,000<br />

$1,000<br />

$1,000<br />

$1,000 - $1,500<br />

$5-$10/rod (1 rod = 16.5 feet)<br />

$8/rod<br />

$4/rod<br />

$16/rod<br />

$8/rod<br />

$4,000 - $5,000<br />

$33/rod<br />

$5,000 - $35,000<br />

$1-$86/rod<br />

$2,000 - $2,500<br />

$25/rod<br />

$7,500 - $8,600<br />

$5,000 - $10,000<br />

$30-$35/rod<br />

FIGURE III-2. EXAMPLES OF COMPENSATION PAID TO SURFACE OWNERS IN VARIOUS PARTS OF THE U.S.<br />

III-11

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