Kinder morgan offer

Oil & Gas Field Operations
1

I need to know what price per foot is the going rate for pipelines today??? Your input will be greatly appreciated.

Several years ago I practically gave away an easement. Don't want to repeat.

Thanks, Jim

2

Jim, we are in Westhoff and received $35 per foot. Be sure to have as much of that as possible classified in the "damages" category as opposed to lease payment as the taxes are less for damages. We also negotiated down from 3 year access to 2 years, hoping they get in and out. We didn't want it to drag on forever.

3

Thanks Jennifer.

What was the name of the pipeline company? Kinder Morgan is doing the pipeline I'm speaking of.

Would you advise using an attorney?

4

Ours was negotiated through Eagle Hawk Field Services. Also, we don't sign anything unless it goes through our attorney.

5

Dear Jim,

I initially evaluate pipeline rates by using $2.00 - $2.75 per inch of nominal diameter per foot.

For example, a 20 inch line would compute a minimum of 40.00 per foot, or $660.00 per rod. Then I go from there. First, you must ask in order to receive.

I try to get the most that I can classified as pre-paid damages. That does not eliminate tax, but does defer the tax by lowering your cost basis in the property.

Best

Buddy Cotten

6

Mr. Buddy,

Sorry i forgot to say thanks for your excellent information/advice.

jhh

7

Thanks Buddy, your information is important and much appreciated. What role do you believe an attorney has in negotiating a price ??