South LA O&G Surface Lease

Single well or multi-well pad?

I know the economics in South LA are going to be much different than Permian or DJ for an operator’s ability to negotiate, damages too high could throw off their projections a bit.

However, maybe counter with something you believe is fair and also a per well payment.

Maybe something like 3500/ac and 15k per well drilled from the pad?

Get a landman to review it for you so he can throw in his own kicker

It’s a surface lease

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Yea I would think hard on leasing them surface rights.

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Well unless this is an off-lease location, or the oil & gas lease has some sort of “No Surface Operations” clause, then the operator might very well have the rights already to utilize the surface to drill and produce from that lease.

It’s usually smart business and relations strategy to try to work with the surface owner and come to a mutual agreement, even if you always have the right to force your way on. Louisiana is still a mineral dominant state. The mineral estate’s rights haven’t been as eroded away as in states like Colorado and California.

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When you say off-lease location you mean the well pad in not over the mineral location?

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Yep. Not within the geographical boundaries of the mineral lease.

Or could be HBP from an older lease, maybe one with no Pugh Clause. Lots of speculation by us message board warriors.