We have been offered $300.00 per rod for a utility pipeline for the transportation of oil and gas. They are requesting an easement of about $1,000 feet. It looks to be only for utilities and not an oil and gas pipeline. Any advice?
KAT
Exactly how is the offer letter worded? The word utility does not necessarily mean electricity or fiber optic cable or some such. It could simply be an added word to a pipeline for oil and gas. What is the dimension of the pipeline? $300 would indicate a large diameter and that would be for oil and/or gas. Is it possible that the company wants to install a large pipeline plus fiber optic or electric line or other add-on? Likely that a ROW form was enclosed and that will tell you whether the request is for a single pipeline or for more than one line. You need to also look at the width of the ROW and how the company plans to access the line. You do not want people driving all over your surface, but to stay on the ROW.