Legal Question in Business Law in Texas

I asked this question earlier, but typed in some incorrect info. This question is more exact:

Mother-in-Law owns 100 Acres in Saint Jo, TX. No mineral rights.

Oil Co. says they have right to drill on her land for Natural Gas and oil and she has NO say. They will compensate her with a total of $4500, $2/rod for ground water and frac water lines, $15/rod for road damages to the road.

They will take up 2.5 acres and be there for 5 years with no additional compensation offered.

Is this fair?

What SHOULD the Oil Co. pay for something like this?

Why do they need so much land (2.5 acres) to do this?

-Jeff


Asked on 8/20/09, 6:32 pm

1 Answer from Attorneys
Jeffrey Brashear The Brashear Law Firm, PLLC

Based on what you have written, each oil company will pay a different rate depending upon what the oil company expects to be doing. As you stated, your mother-in-law does not have any say for the mineral rights on the land. Your mother-in-law may want to independently verify the fact that she does not have any mineral rights (if that is questionable). As for why they need 2.5 acres, my speculation would be that the oil company is attempting to limit any potential exposure which may result from something going wrong on the rig. If my law firm can assist you with this legal issue or any other legal matter, please contact us at [email protected] to arrange for an initial consultation.

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Answered on 8/21/09, 9:47 am


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