I own farmland in eastern oregon, TransCanada is placing a 20 inch line though a large wheat field just over a mile in length. 50ft permanent and 75 temporary work easement. I would like comment on price that is paid in other parts of the U.S. where land values are about $1,000 to $2,000 per acre. I have read several disscusions on value using dollars per foot or rod. TransCanada is offering based on per acre land value It seems to me that the market in Oregon is not as well established as it is in other states. The gas line connects an established pumping station to a new gas fired power plant. I would apprecieate input. Thanks.
A recent offer in western KS was $91 per rod length. Same size pipe, same r/w but ours is a 3rd pipe in an r/w established about 8 years ago. Ours is for crude oil. Land values approx. same.
I will be interested in other comments because we have not signed
I'm in northern Oklahoma & we got 175/rod for a 12" gas line that went half a mile across our pasture. Same size ROW I think. Things we put in the lease: no above ground structures, only one line, double ditched, replanted, at least 4'deep. This was almost 2 yrs ago.
Hello guys:
Everyone has to do what they have to do; but, pipelines are a real sore spot with me even though I know we need them in some instances. I'm in Central Texas and obviously, prices and modes of operation differ depending on the geographic location.
First off, we all know that lines put in as a major transmission line "for the good of all mankind" and to make the pipeline company rich and richer are more than likely subject to their "right of eminent domain". IMHO, this just gives these pipeline companies and the judges they purchase the right to legal thievery.
My thought and experience:
1. Don't do anything without help. Preferably an attorney that knows what he or she is doing.
2. Do your best to not have a permanent ROW. Make it temporary with time limitations when not in use or flowing gas/oil. With that you will need some form of annual or biannual notification about volume of product flowing through line.
3. Don't even talk to anyone about paying for ROW in Rods or acres, talk in linear feet and width of ROW. 50 foot wide is more than enough for the ROW. If pressed for more, give them an additional initial instillation of 15-25 feet which is only good for a couple of months maximum.
4. All the other stuff mentioned by other bloggers is good stuff, such as double ditching, depth, at least 4 foot, cleanup and leveling and replanting and no above ground valves, pig traps, meters, etc.
5. Make sure fence lines and gates are up to your specifications.
6. Make sure they only have the right to use the Right of way rather than your roads, etc.
7. Permanent pipelines are there forever, and these guys are always going to want a permanent ROW which decreases the value of your overall property considerably. They will play lots of word games with you; but, who knows how an open piece of property will be used in the future. Especially on open pasture land, these guys will be more than happy to tell you that this is just a worthless piece of property and you should be happy the pipeline company is offering you money for the ROW.
8. Lastly, there is a lot of other things to think about; but, make sure they follow a fence line or some other straight line rather cutting across your place at a diagonal just to save a few feet. Also, don't let them tear up you existing roadways, make them boar the road. A little more time and effort; but, they will do it if pressed to do so. Also, limit one line per agreement. No additional lines without a new agreement and pay.
Now with the introduction out of the way. A small "6" low pressure line was just put in across the road from my house. This line tied into an existing "8" line that came across my place so I was quite interested in every step of the operation. This line was not subject to their using eminent domain so they were quite easy to work with. Their initial offer was $15/foot for a 50 foot ROW. They finally agree to $25. The property owners were too easy to deal with so they agreed to a permanent ROW instead of temporary. I will say this, once the agreement had been signed, the folks working the job were easy to deal with. They put in excellent fence supports and gates at every crossing and they cleaned up their mess, leveled the ROW using a dozer and then followed up with a maintainer and then disked the full ROW and then planted the total ROW. The mineral owners have to live with it forever; but, at least these guys were as mineral owner friendly as possible.
A little windy here; but, good luck.
Thanks for the input, can someone clarify how crop damages are addressed when valuing easement by the rod or per foot. Is it a separate issue or rolled into the value of easement .
Thanks again, the comments posted are helpful.
In 2008, when our R/W was established we had wheat on a portion of the R/W length. Here is how they paid. Length X width to get acres of total disturbance, then 50 bushels/ acre X 3 years to recover at market price for wheat. That is in western KS so your production may be different.
Joe Rietmann said:
Thanks for the input, can someone clarify how crop damages are addressed when valuing easement by the rod or per foot. Is it a separate issue or rolled into the value of easement .
Thanks again, the comments posted are helpful.
Ron:
This forum gets better all the time. A great place to share information that is otherwise almost impossible to get unless we are magicians. As you just said, we may have to modify the data, depending on the crop/price etc; but, a great answer. I will add this one to my file. In Texas, especially, in Central Texas, most of us have Coastal Bermuda hay fields and lots of dry weather, so it is really hard to get the grass to cover again even if we force them to re-sprig. They really resist paying any long term damage beyond one year. I have a place that still hasn't recovered, even after ten years. Of course seed crops are a little easier to recover; but, even with double ditching it is next to impossible to get the topsoil back where it belongs.
Great post1
Ron Bahm said:
In 2008, when our R/W was established we had wheat on a portion of the R/W length. Here is how they paid. Length X width to get acres of total disturbance, then 50 bushels/ acre X 3 years to recover at market price for wheat. That is in western KS so your production may be different.
Joe Rietmann said:Thanks for the input, can someone clarify how crop damages are addressed when valuing easement by the rod or per foot. Is it a separate issue or rolled into the value of easement .
Thanks again, the comments posted are helpful.
Another possibility is to figure how much it will cost to go around the meets and bounds of your property and request that amount. This worked for a large ranch owner I know.