What is a reasonable value for a pipeline easement? I was offered $100/rod to cross an 80 acre parcel. Also, would there be any ramifications to my current mineral lease now or in the future?
Rick
Richard, there are some threads here on pipelines. The terms seem to be even more important than the dollar amount. Just the basics, I wouldn't give exclusive rights, single use only [one pipe], permanent easement the width of the pipe, buried below plough depth, no surface appurtenances, one time damages payment and a yearly rental payment after that, possibly $2,000 or more a year because that line could be in use 50 years or more. Make sure you allow for depreciation of the property in the damages because it will not be worth as much after they put a pipeline across it. You don't want to give exclusive rights because then nobody can cross their easement without their permission so they could demand payment $ for other pipelines / utilities to cross your property, probably including water and electric. I've just scratched the surface, there is much to know beyond price alone.
Thank you very much Mr. Kennedy. You've touched on a whole slew of issues I hadn't even considered. I should be seeing the written proposal next week. They've recently set two pads on the adjoining parcel so maybe the drillers won't be too far behind.