A new O&G company is taking over an oilfield on the back end of the ranch in Wyoming. They are wanting a fresh easement signed. The previous easement dates back to the early 70's. My understanding is that they are likely wanting a new easement signed because they worry the original easement wasn't spelled out well enough to ensure uninterrupted access. A rep for the company reached out offering a one-time payment of $2/rod if we will sign an updated easement.

I know absolutely nothing on this subject, but is this a good deal? My initial thought it that the deal is awful, and there should be some language in the easement requiring that they perform regular maintenance of the road and improve the erosion control and replace many of the cattle guards along the way that are extremely worn out. The road through our place is roughly 4.5 miles long or so. I'm hoping some of the resident O&G experts of the OT can help me better understand this.

Cut off access before negotiating?

If they say you can't do that then ask why redo the deal?

This is a ghost of jayc41 question. I would not cut off access. I know there is some variance in state by state laws. I would think reasonable requests for maintenance of their easement should be a very fair request. Some of the leases done in the 70s were a bit one sided, I know the one my grandfather did was and we are stuck with that one forever. In our case the oil company does the bare minimum. Sold the land so it's not my problem anymore. We had issues with them not doing erosion control in their pipeline right of way and a tendency to leave old non used equipment and junk laying around.

That's what I am afraid of. Is it out of the question to demand they fix X,Y and Z before we sign the easement? I am not of the belief that saying, "Yeah I will sign it as long as you promise to fix all this stuff." I want it done before they even think about handing over an easement to sign.

No clue about O&G law in Wyoming, as it differs from state to state as to lessee's/mineral interest owner's rights. Sorry. Hope it works out well.

I think you are approaching it with the right mindset, it's funny they are coming back on something like that and you should find out why. Having and oil and gas attorney do a read through on the existing agreement and stare at a survey might be a good idea. When I have dealt with leases in the past I always assume they know something I dont about what's going on and you probably want to find out. Their agent may just tell you why a new agreement is needed but I would do some fact checking, especially considering the size and nature of your property and the means you have to do so. My grandfather refused to allow a compression station on the lease he did so they put it across road, he got no money for that and ended up with a compression station directly across road from some of his best frontage..... gotta kinda think things thru sometimes.....

I would have wording that includes not just "fix" but also maintain.

Is there a possibility they want to expand their operations there? New site ? or maybe only a rework of existing extraction infrastructure.

I've got a call set up with our attorney up in WY that specializes in easements. We will see.... The O&G company definitely knows something we don't know.

The current easement uses the word "maintain" but their definition of maintain is a lot different than mine because our 4.5 mile stretch they use is so bumpy it'll rattle your teeth out of your skull.

CPA might not be a bad one to talk to either. Not so much as the legalities but payout options, vs one time. I know we've had a cell tower on some land where back when they put it up, we negotiated a deal where instead of a one time payment it's monthly, and each month increases at X percentage. It's been going for probably 20 years now and each year they come back wanting to buy it out. Kind of a gamble but so far it ain't that bad.

Dude, you got the Jack, hire an O&G attorney and let them work it out for you.

How's your dog doing?

$2 a rod is what they paid in the 70s. I would talk to neighbors and see what they going rate is. In East Texas you can see it from $100-$500. You can add an addendum covering what you would like to cover. An Oil and Gas attorney might be the way to go if you have enough acreage. As far as the fixing anything before you sign that is unlikely. They are not going to fix it and then have you not sign. Make it apart of the new deal and layout what you want. They should have a field guy that you can meet with. Also you can ask for a term to the agreement.

Yeah, how is that good puppy dog? Was he in the airplane chasing down grizzlies with y’all the other day?

Working in the energy sector here in Oklahoma I highly recommend you get an experienced O&G attorney. Energy companies do not like to give up right of ways. So they will negotiate on right of ways. Get that attorney and don't settle for less than what other energy companies are paying for rods on new leases and/old renewal of leases. They are trying to lowball you. Have that original lease examined from front to back to see what was agreed to and what actually was done. With the price of oil going back up the energy outfits are going to be making good money again...especially on older producing wells.