Does anyone know the price for a company to lay an underground pipeline on my land? Have a company that I have never heard of and also using another company to contact me. They even sent a contract for my signature.
I am really lost as to the going rate.
Hope someone can help me with this.
Thanks in advance for any and all assistance.
Louise
Louise,
I had two companies purchase an easement to lay either one or two pipelines down the West side of my property in C-18 Sec 4 area. The going rate seems to have been $100/rod. A rod is 51⁄2 yards or 161⁄2 feet. There are surface considerations (depth of pipe, and diameter, etc.) to make sure the pipeline can be driven over by heavy trucks etc.
r / Fred
Fred Klein,
thank you so much for the quick response. Now to get back with this person about laying underground pipeline...
Louise Welch
Louise...
that's what we have been getting from Clayton Williams in the past.
Bill Woods
Fred Klein,
I spoke with the person (working for another company) and he was surprised that the contract did not include the "Attachment A" and I informed him that I was willing to work with him, but, it must be to my advantage. He said the company pays $50.00 a rod. I told him I was informed of $100.00 a rod.
Could you inform me of what all I need to be aware of before signing a contract. This is so new to me. He said it would only be the top corner of my property, so we are not going to be looking at a lot of money. I am concerned about lawyer wording that I may not be so savvy of, what to look for.
I thank you for all your help and I really appreciate it.
Louise Welch
William R Woods said:
Louise...
that's what we have been getting from Clayton Williams in the past.
Bill Woods
Thank you for you quick response Bill. Just wonder if the low price of oil could affect the price per rod now days..
Thanks for your information. It helps...
Louise Welch
Louise,
I am not a lawyer, so I am not too sure of all the language needed. My easement was fairly simple and I used the Texas A&M university site to get a copy of the "sample" surface contract to compare with what I was sent. As long as they return the surface to its original appearance, I would think that would work.
r/ fred
Thank you so very much Fred. I truly appreciate the help. I like the information that you have given me. At least, an avenue to venture into.
Louise
Rates also vary by size of pipeline. See University Lands - Rate and Damage Schedule. Also depends on whether you will receive additional compensation every 10 years or get one-time payment. Limit to a single pipeline of maximum specified size.
Do not grant easement in perpetuity. Should terminate when no longer used.
@TennisDaze,
thank you for the information about the University Lands. My land is State Classified so don't know if that has anything to do with University Lands, but have a feeling it does. I hadn't even thought of re-compensation every 10 years, but that is a great thought.
Once again, thank you so very much. It is so helpful......
Louise
This pipeline business if getting so funny that it is really redicious... Now the third party landman is offering me 50.00 a rod, but said since I only own 1/2 of the land they would pay me 25.00 a rod.....I think this is his first rodeo..My land is State Classified, undivided.....State owns everything under the ground and I own the surface. Don't know where he gets that I own half???? Half of what??? At this rate, I don't even care about a pipeline as it is profitable to them, not me. What do I profit from a pipeline on my land?
I hope and pray someone can help me deal with this person as I am getting tired of this.... I may as well go to Pecos and grow watermelons, probably more profitable that dealing with oil companies....Just blowing off steam tonight....
Louise
Is your section mineral classified? Or is it a different category? If you give section, block, survey, and abstract then someone can tell category. If your land is mineral classified then as surface owner, you negotiate oil and gas lease as agent for State of Texas using General Land Office form. You can add provisions in addendum to that form - including that well site damages will be paid at rates in Rate and Damage Schedule of University Lands System and divided 50-50 with State of Texas. Then you and State of Texas each receive 50% of bonus and royalties. If your surface is mineral classified, then if you negotiate a pipeline or electric line or other right-of-way that is for an oil or gas well under your oil and gas lease, then the payment is divided 50-50 with State of Texas. Think of this as part of the exchange with State - you get 50% of royalties and State get 50% of related damages and other payments. However if the pipeline is simply "passing through" your surface and is unrelated to any production related to your property, then you get 100% of the payment. Keep in mind that General Land Office has oil and gas form that you must use but you negotiate and determine the pipeline ROW form. Good contact at General Land Office who can help you with determining your rights and State rights is Drew Reid.
Received priority mail from Commanche Trail Pipeline that a proposed pipeline might cross land owned in Section 37, Blk 55 PSL and it might be necessary to acquire easement rights. Anyone else been notified about this pipeline and what easement terms are recommended. Donny
Not heard from them before. People I have dealt with are Red Willow Corp. and Regency Oil and Gas (working for ETP).
r / Fred K
FYI for Reeves County Surface Owners:
I recently closed a ROW transaction in Reeves County for $2.50 per inch/foot of pipeline and the pipeline company also paid my professional fee. They also accepted my ROW form with almost no changes.
For those not familiar with the term inch/foot, an example will explain it. In the University system rate and damage schedule, for lines less than 6", the fee is negotiable but not less than $24.00 per rod for a 6" line or less.
Let's take a 6" line. $2.50 x 6 = $15.00 per foot or $247.50 per rod. A 4" line would be $2.50 x 4 = $10.00 per foot or $165.00 per rod.
Best,
Buddy CottenThanks Buddy! I was recently offered $75 per rod. Seemed very low because university land rates says $65 a rod for 10 years and then renewal at $45 per rod for another 10 years.