I recently have been approached by a landman representing Penneco pipeline asking me to sign a agreement giving them a ROW to run a 8" pipeline through my property in west virginia. price was $5.00 per foot and offered me one hundred dollars paid in hand upon reciet of this document contract gives them two years to lay the pipeline If i sign this contract can i lease another ROW to another companey during the two years Penneco has to do this line? Does this sound like a reasonable offer or are they trying to put one over on me?
Mr. Alexander, I think you need a full contract outlining the the pipeline to be run across your property, the width of the continuing easement, the amount of property they will need to use/disturb to install the pipeline, many other subjects and I'd want to be paid in full up front by cashiers check, before the signed agreement left my hand. I think it would be wise to consult a professional, about price and to reveiw your agreement. Remember, full payment or nothing. They either want the easment or they don't, $100 won't pay your lawyers if you need one later. Good luck.
thanks for the input the contract he brought was so vague only thing it really was specificabout was two years they had to start projectand it was 20 feet wide
In Texas, easements are appraised at Fair Market Value. The market price of your land is the starting point. Then determine the width of the easement upon completion. (20’, 30’ etc. ) Figure the square footage they will hold. For example If they have a 30’ easement across 20 feet, that is 600 square feet taken from the size of your lot. Say you have a 6000 sq foot pc of land and it is valued at 10,000.00, they are taking 1/10th of that and so you would charge 1,000.00 for the easement. You would rent them additional space while they build the line at about 1/2 that, plus damages, say 5.00 per foot. In addition, you need a firm ROW agreement, stating they have to bury the line 36", etc. Look online for info on Pipeline negotiations. If this is your front yard or something…be careful what you let happen to your property. You can graze cattle or something but you can never build over that easement, etc. You want to designate the placement of the pipe, etc. He is going to have to cross all your neighbors, too, so I would think you could all get together and hire an experience attorney to help you work through this. Also, let them have it for 5 or 10 year lease periods, where they have to come back and pay you every so many years, adjusting the price to CPI or market value. And, yes, you can sell other easements across your land, as long as you don’t cross where they are going…NEVER SIGN THE EASEMENT THEY PRESENT TO YOU. It will be drafted to their benefit, not yours. Pipelines are permanent and they do effect the value of your land. I strongly suggest you and your neighbors see a good attorney. I would not let them lay a line across the surface. Too dangerous. Hope this helps.
In Texas, the Fair Market Value FOR CONDEMNATION PURPOSES is based on the highest and best use of the property. Otherwise, FMV is the price that a willing seller and a willing buyer arrive at.
Unless the pipeline company is a common carrier or otherwise has acquired rights that vest the pipeline company with condemnation power, you are the monopolistic owner of the property and they cannot force you to do anything that you do not want to do. From what I can see from their website, Penneco is certainly NOT a common carrier, just the run of the mill exploration company who has hired a ROW agent who has no clue.
Mr. Alexander. with what you have said so far, tell this clown to come back when he is serious. THEN. get a professional to guide you along.
In some portions of Texas we have been granting ROW for over $1000 per rod.