The First Step in the Pipeline Process

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1

With the stack up of oil at the Cushing, Oklahoma terminal, pipeline companies are racing to send the product to the Gulf Coast refineries at breakneck speed.

Before getting into legalities, which will be part 3, let's start with the beginning of the process.

Before you are approached for laying a pipeline on your lands, the right of way agent will ask you for permission to enter the property for the purpose of surveying. I generally get between $500 and $1000 for such right for my clients. Some, absolutely zero. Of course, that sets the tone for me when they come back looking for a pipeline easement.

Here are the items that I want for my Land Entry Permit:

A beginning date for them to have the right to enter.

An ending date for the operations to be completed. You may take into account hunting seasons, etc. Just another negotiating point.

Now the meat:

  1. DESCRIBE THE LANDS FULLY. A complete legal description. Not a appraisal district or taxing district number. That is not sufficient.
  2. LIMIT THE SURVEYING: to civil, environmental, assessments, topographic and archaeological surveys. Request copies of all surveys on your property.
  3. ENTRY: Limited to time scope and just as much land is reasonably necessary to conduct their survey operations.
  4. DAMAGES: Repair any damages. Pay for damages to timber, crops, livestock, real or personal property, etc., that is damaged.
  5. INSURANCE: The surveying company shall furnish Certificates of Insurance and will maintain insurance for the time that the survey crew and officers, invitees, etc., are on the property. Also include Workman's Comp and Employers Liability Insurance. Require General Liability Insurance. Require Automotive Insurance. Require Environmental Impairment Liability and have you named as an additional insured on the policies.
  6. INDEMNIFICATION: The company indemnifies you for everything, suits, etc., including death to third parties.
  7. NOTICE: The company has to tell you when they are going to be out there.
  8. OPERATIONS: Conducted in a good and workmanlike manner.
  9. ROADS: Limit travel to existing roads on the property, if feasible.
  10. LIVESTOCK: Make sure that they make every effort to not let LulaBell, your bell cow, run out the gate, leading all the other heifers and pay for her if she does. That is a good place for the insurance to come in. A car hits LulaBell and kills a lady and her 3 kids. It still surprises me that we eat something that stupid.
  11. USE BY LANDOWNER: Of course you have the right to be on your property and use it. Let's just say it.
  12. FIREARMS: We don't care how many licenses for concealed carry you have. Leave them at the motel.
  13. COMPLIANCE WITH LAW: Self Explanatory.
  14. SURVEY MONITORING FEE: This one sometimes you get it, sometimes not. I try to get my surface owners $500 a day to have him or one of his hands to watch the survey crew and stop any damage before it happens and to make sure that the company follows the letter and spirit of the agreement.
  15. SIGNATURES: By both you and the company, or the survey contractor.

This is part one. Part two will be suggestions on negotiating points on a pipeline ROW itself.

1 Like
2

Buddy,

Do you have a sample clause for the reversing flow of the line?

Thank you.

3

Dear AB,

The clause reads essentially as follows: The flow direction is from X:X. Any change or reversal of flow is subject to the approval of grantor.

Sometimes simple is better.

Buddy Cotten

4

Thank you.