Measure and count Allowable size and number of easements and well
sites are usually stated in the surface lease, which al- lows the land manager to measure and count instal- lations to ensure that the document is followed. This is important because oil and gas production can take a sizeable amount of land out of agriculture. For example, a 50-foot wide easement uses 6 acres
of land for every mile in length. The pad for a fracked well can consume up to 5 acres. It is very wise to check the company’s measurements, due to the amounts of money that are paid for surface damages. The possibil- ity of additional compensation could make the effort worthwhile. Another reason for measuring and counting is so
you can calculate the remaining agricultural land available for farming or grazing. A reduction in grazing land requires destocking, and
less farmland could result in loss of crop production. The downsizing of any agricultural enterprise may
provide an opportunity to sell equipment that is no lon- ger needed. Fixed costs are usually the largest drains on profi t and selling equipment reduces depreciation and maintenance expenses. “Request that the oil or gas company cross the
least productive land with easements and position roads to provide the most benefi cial ranch use,” says Petter. “Most oil companies are willing to locate easements according to the landowner’s requests, provided they are reasonable. The needs of both par- ties are addressed if the requested locations require less construction costs.”
Remember the livestock Oil fi eld equipment and cattle are not a good mix
unless a fence separates them. Cattle are curious — particularly the calves — and they will wander into equipment areas just to see what is going on. “Head and neck injuries in cattle commonly occur
when pump jacks are not enclosed with fence,” says Glenn Rogers, DVM, consultant and owner-operator of Holt River Ranch. “Injuries range from fractured jaws to crushed heads, sometimes resulting in death.” “Ditching for pipelines can cause problems for live-
stock,” says Petter. “Contractors often dig a trench and then return the next week to lay pipe and backfi ll. The ditch may be dug between the herd and their source of water. When cattle get thirsty, they are going to try to cross the ditch. We know of several cases where cattle have fallen into a ditch and been seriously injured.
94 The Cattleman March 2015
“If moving cattle from the pasture is not feasible,
require the contractor to install and cover pipelines the same day the ditch is dug,” Petter continues. “The ranch manager needs to monitor progress of pipeline construction so he knows when to move cattle to re- tain water access.”
Restoration It is important to monitor restoration activities to
ensure agricultural production capabilities of the land for future generations. Methods of land restoration need to be specifi cally addressed in the surface agreement. “We recommend that surface owners require resto-
ration funding from the oil and gas producer, but that they take responsibility for getting the work done,” says Petter. “Normally, oilfi eld contractors don’t have the expertise for seeding grass or preparing agricul- tural sites. It is better that landowners or managers act as the general contractor for restoration work or do it themselves. Additional money can be made doing the work with ranch crews.” Catoico uses Texas Parks and Wildlife Department
(TPWD) bulletin Voluntary Conservation Practices as a guide for balancing wildlife conservation, agricultural production, and oil and gas development in a manage- ment plan. Topics discussed in the bulletin include: • Management Practices: Minimize Impacts to Natural Resources
• Planning: Before the Drilling and Development Begins (practices that should be detailed in the surface agreement)
• Operations to reduce environmental impact and surface damage (as dictated by the surface lease)
• Reclamations during and after production • Monitoring Find the bulletin at
tpwd.texas.gov, typing “Volun-
tary Conservation Practices” in the search box in the upper right corner of the web page. Most oil and gas producing companies strive to be
good land stewards and try to please the landowner. Landowners, in turn, need to be reasonable in their demands and develop a good working relationship with the producer. Let the lessee know your expectations by writing
them into the lease. Then monitor the oil company’s activities on your property and adhere to your obli- gations as written in the document . Oil and gas pro- duction are benefi cial enterprises for the agricultural producer, provided good relationships exist between both parties.
thecattlemanmagazine.com
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