The Implications Of Excavation On Your Land
If you are thinking about building a home, the one thing you really have to consider is the value of the land that the property will be on. After the approvals and permissions have gone through, the coast is clear, right? If you have chosen an area that is away from the cities and localized areas, you may find that you get people knocking on your door from energy companies. Why? Because they may be interested in your land all of a sudden, and this could be because of minerals or oil or gas that is untapped. So what happens when you own a piece of land where you could be sitting on a small fortune?
Well, the first thing to look at is what you actually own the rights to. You may own the surface rights to the land, which puts you in a good position for striking a good deal. The discoverer may offer to buy the rights to the minerals. This means that they know how much you are sitting on. If they are unsure of the amount underneath, they are likely to offer an agreement on a lease basis. When the land is leased, you will get a down payment when you sign the agreement. Depending on what you are sitting on, you could get monthly royalty payments based on the value of the mineral. Standard royalties are around the 12.5% mark, but you could get more if you are skilled in negotiation.
There can be some personal impacts, such as the living conditions. You may find that you can live with the noisy conditions, but some of the excavation machines, such as reverse circulation drilling, are quieter than the typical machines. They work to minimize the environmental impact on a piece of land, meaning that you shouldn’t feel the stress of a building site in your own front garden! If you own the surface rights, you need to make sure that you are protecting your property efficiently against any side effects of drilling or excavation. In your agreement, you need to set limits on the drilling so you can still enjoy your property. Damage to your property can take a long time to reset, so make sure that you are going over the agreement with a fine-tooth comb.
If you are unsure of where to go or what to do if an energy company wants to drill for minerals, you need to have a professional with you at every step. Living on a piece of land that is lucrative may mean that you could get drawn in and blindsided by money, but you need to protect that land, especially if it is integral to your living conditions. For example, if you use a well for water. If companies are knocking on your door, you have the right to say no until you come to an agreement or if someone else makes you a better offer. Knowing what a lease is worth can be difficult, so by having a skilled negotiator on your side, it will help to make it an easier process.