Natural Gas Pipeline Right-Of-Way

Utah Mineral Rights Duchesne County, UT
1

I am a land owner and have been contacted by a landsman that they will be conducting a survey for a route for a natural gas pipeline and associated liquids. What is the going rate for having a pipeline built on my land?

2

My first suggestion would to not allow entry until a Surface Access Agreement has been prepared and signed. You need to protect yourself and your land.

Best,

Buddy Cotten

3

Have that in agreement in place. Wondering what the going rate per foot might be. Thanks Buddy

4

If I were negotiating this, I would begin at $3.00 per inch/foot. For example, a 20 inch pipeline would be valued at $60.00 per foot. That is on the high side, but you want to begin on the high side.

Good luck on this.

Buddy Cotten

5

Thanks for the input Buddy. Will take your adivice and start on the high side…can always go down, but not the opposite. Thanks, Larry

6

Hello! Following up on this thread to ask on how this went as I am going thru the same right now. Thanks in advance.

7

That’s pretty steep, but it’s a place to start for negotiating. There’s more to negotiate than the price. How much would it interfere with your use of the land, likely minimally. You need to decide how much, realistically, you use the land. Is it agriculturally productive? What would the land sell for? Would you consider selling the whole parcel? How is the best way to co-exist? Can you stay involved in the process and surveying so that you get some input on the route and start building a relationship with the company people that may need to come back for maintenance and repair?

I know Ranchers that, during lean times and good-faith negotiations, right-of-way agreements made a survival difference for their operations.

1 Like
8

Hello Ryan! What do you think a fair price is today?

9

That really depends on a lot of factors, like the questions that I posed and the current market and the (production) field where it is located. Some operators and areas negotiate price based on a per rod figure for the length of the right-of-way. Others, depending on the use and width of the easement requested, may pay compensation on a per acreage basis. Is your property in Duchesne County?