I am one of a small family group owning mineral rights in Reeves County, TX, near Orla. We have had several requests for permanent easements through our Sections. We already have accepted water, electricity, and another easement from a different company. Now this permanent easement offer comes from Upperline. Is this permanent easement a common offer? Lawrence, I could use some information about what to expect from various companies. Our lease is with Apache. This involves Blk 56Sect 30,32,36, and 38, Township 3. Any information would be appreciated. Glenda
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Do easements/rights of way expire?
Thanks!
You do not have to agree to a permanent easement and can instead specify that it expires upon cessation of use for some period such as a year. Also, only agree to a single pipeline of a maximum size. You should receive additional payment for each additional line or if the line size is increased. Buddy Cotton has written some good articles on right-of-ways and there is a Texas A&M Agrilife called Texas Pipeline Easement Negotiation Checklist with good information.
What Tennis Daze says is spot on. Negotiate your rights of way (easements) through a lawyer…ALWAYS!
Permanent easements are the goal of every producer/operator, but you can force them to take a term
specific ROW agreement with periodic renewable clause. Its up to you to get the best deals you can, but
ALWAYS get a lawyer to represent you.
How does one facilitate a better deal when there is no lawyer representing your interests. I am one of five, but we give consent for pipelines individually. Up to now, three pipeline easements and a powerline easement. Was told that a lawyer would basically eat up any profit if you only have a little acreage. So far, I have basically accepted their terms because I don’t know what to ask for. It’s almost easier to take their offer than to try to figure it all out. So far royalties from wells have been more than I was expecting. Going up monthly. Your advice is relevant and helpful. It’s all I can go by.
Glenda- First thing to try is to negotiate together and split the fees. If still too small, then if you have multiple properties with small interests, consider investing in professional help on one deal, and then using that as a form for subsequent ones you try to negotiate yourself. If you only have one small property, then reading this forum and looking for the GLO forms to negotiate from is your best bet. Here is a link to an article just published about the costs to families of not negotiating together. See pg. 7 http://www.naro-us.org/resources/ROAR/2018/July%202018%20Printed.pdf
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It has been my experience that approximately 90% of the pipeline companies will agree to pay all or at least a portion of the attorney/consultant’s fees.
Best, Buddy Cotten
Buddy, thanks for the information. I will certainly keep it in mind.
What if we have been presented contracts for permanent easement on our section. Two signed, but one did not. Does that mean the company must have unanimous decisions from all mineral rights holders in order for permanent ROW to stand?
In theory, all surface owners must execute an easement for operations to commence. The reason that I say “in theory” is that some companies are using a variation to the theme and calling it a “Limited Surface Use Agreement” and not using the terms “easement” or “right of way.”
HOWEVER, the question that is begging to be asked is, “Do all owners have to execute the same agreement?” The answer is no. Each interest, whether divided or undivided (generally), stands alone and each is free to negotiate their own transaction on terms that they find satisfactory.
Best,
Buddy Cotten
When there are multiple surface owners of a tract, any one of them can permit a surface use such as an electric line or a grazing lease. The idea is that such uses are visible. The consenting surface owner should make it clear in the document that he is being paid only for his proportionate share of the surface use. For example, if he owns 1/4 of the surface, then if the electric line is worth $1,000, he should receive only $250. He should be careful not to accept the $1,000. Otherwise he could be held liable to the other surface owners for their share of the revenues. This is because each surface owner / covenant has the right to use the surface. However, for a pipeline which is buried and not visible, it is generally agreed that the pipeline company needs consent from all surface owners to build the pipeline. This prevents any claims of secretive use of the surface. Theoretically the pipeline company could put up signs or notices which would notify the other surface owners, but that is not advisable.
How often do pipeline companies accept limited term for an easement? what’s the usual term that’s acceptable and what kind of price does a landowner accept for renewal… same price as original agreement or somewhat less? also… what sort of price per rod should a landowner accept for a saltwater line… 8-inches. family has a certified O/G lawyer and we’re not at the point of hard negotiations… just a survey so far.
Jack…it depends entirely on what they are doing with the saltwater and how critical it is to their operation as to what they will be willing top pay per rod for a ROW and whether they will accept a term specific ROW agreement or require a permanent ROW…and your lawyer should adjust his negotiations to account for term limits on a ROW with renewable clause or make it permanent. Best answer I can give you because each case is different and it really depends on your acceptance. ALWAYS use a lawyer to represent you in negotiations, though.
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Thanks for the information Mr. Rayburn. things are moving forward and hopefully we’ll come out of it okay.