By Tim Farley
News Editor
Canadian County Commissioner Jack Stewart was surprised Tuesday when he drove past county-owned land and witnessed an oilfield crew prepping a well site for production.
The problem, Stewart said, is that Chaparral Energy owns the mineral rights while the county owns the surface rights. In Oklahoma, minerals rights supersede surface rights.
Still, Stewart said he was caught off guard because the county and Chaparral are still in negotiations for the amount of money the oil company will pay for surface damages. The two sides had negotiated as late as Monday morning during an executive session at the Canadian County commissioners’ meeting.
Stewart had mixed emotions about Chaparral moving forward with their production plans.
“Yes, we’re upset, but no we’re not at the same time because we can’t stop ‘em,” he said.
“Because they own the mineral rights, they can put their tanks and pipes anywhere they want. This is a great piece of land that will be unsightly for a very long time.”
The property is located east of the juvenile justice center along State Highway 66.
Chaparral Energy submitted an offer of $35,000 an acre for damages. The company is using 3 ¾ acres for its wells. The offer was rejected by the commissioners.
“We’re doing to continue to negotiate and if we can’t come to an agreement, I guess we’ll go to a jury trial,” Stewart said.
County officials have not established a damage amount they’re willing to accept, Stewart said. However, he added, “that’s (Chaparral’s offer) not close to what it should be.”
Stewart is fearful Chaparral’s wells could be on the county land for the next several decades.
“Probably 50 years,” he said. “At least 30 to 35. Some of the ones (wells) started in the 1970s are just now being cleaned up.”
Chaparral Energy filed a petition in Canadian County District Court seeking the appointment of appraisers who would determine surface damages. The petition was filed Oct. 2. The land is owned by the Canadian County Public Facilities Authority.
Chaparral attorney John Krattiger sent a notice dated Sept. 27 to District 1 Commissioner Marc Hader notifying him that the company intended to begin operations Oct. 3.
The notice reads, in part, “It is Chaparral’s desire to continue working with you to negotiate a mutually-acceptable agreement prior to entering the property. However, if it cannot reach an agreement, Chaparral will have no choice but to file a Petition for Appointment of Appraisers pursuant to the Oklahoma Surface Damages Act and commence operations without your agreement.”
