Input on Mineral Drilling and Habitat/Wildlife Affect

[suburbhunter]

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

[Happy]

I am indirectly involved in such work. I know around here the oil and natural gas companies pay the owners a monthly fee if they have a well or are in the process of drilling. That is in areas that they don't own the mineral rights obviously. If you can buy the mineral rights I would say go for it. If they decide to pursue anything in the near future it's only a matter of time until they are making payments to you if you desire or you can put an end to it. I do know some landowners that are making pretty good money from it. A gas well can be drilled and operational in a month so I wouldn't say they won't do anything in the next 2.5 years.

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[buzzardroost]

Buy the minerals if you can.


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[suburbhunter]

The mineral rights are in play and I obtained a copy of the lease. The last page, an amendment to the lease, basically says that prior to drilling the oil company will consult with the surface owner upon drilling building roads, as to where things may be done. Usually does consult mean "we appreciate you input but we are drilling, making a road here, ect. anyway"? Or if a landowner strongly opposes to a process being done in a certain place, will the oil co say "how about here"? I'm not sure if a consensus between the two parties has to be agreed upon or in the end they can go about how they want, and write the surface owner a check for damages. I know there are setback restrictions.

[Spring Creek Calls]

Interesting topic, I hope you get more input/information.

[Happy]

They typically can't do anything without your permission. However they will make every attempt to buy your permission.  I hate lawyers but sometimes they are necessary to make sure you don't get taken advantage of. I would not agree to anything I didn't understand completely.

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[Yoder409]

A gas well can be drilled and operational in a month so I wouldn't say they won't do anything in the next 2.5 years.

Yes.................initially.  But a deep gas (Marcellus or Utica) basically turns into a 5-10 acre town.  Sometimes for a couple years, until they get holes punched and fracked on all the corners.

The company may work with you some on the finer details.  But, depending on the orientation of the gas-bearing zone, they may be quite limited as to where they can set up shop.

Your best hope is that the gas company buys up the leases on a 600-1000 acre block and they need to put their location on someone else's property..................just bring the horizontals underneath your land and pay you your royalty share.

But, by all means, buy the rights if you can.

[JK Spurs]

Biggest thing is understand what your signing. Landowners often sign on the dotted line and don't realize what's involved. As far as drilling, well sites and pipeline right always become fantastic food plots after seeded and mulch. I don't think you have anything to worry about though....there's not much active drilling in Kentucky. I think there's one rig in Union County. Everyone is focused on the Marcellus and Utica shale and Kentucky is not the sweet spot.