I am a landowner, as well as a mineral rights owner in Dewey County, Oklahoma. I was just contacted by a Natural Gas company with interest in putting down a pipeline across my property. That particular property is currently being leased by another farmer to plant his crops on, as well. I am a mineral owner in that particular section as well as several different other sections in Dewey County and could tell you a lot about “mineral royalties”, but I need help with “Pipeline Easements”, such as…what is the going rate? What should I as a landowner ask the company for? What should I as a landowner look for in the contract?..etc. Please advice.
I moved this over to Dewey County for you in hopes that local folks can give you an idea of the going rates. For pipeline easements, you really need to get a knowledgeable attorney involved as they will affect your land for decades. You need a separate lease for them and they can be pages long!
Talk to your neighbors, see who has dealt with the company and how they did business, in addition to what they are paying per rod. One-Ok has paid $300 a rod for shorter lines, but that seems to be a number to shoot for. Make sure they are limited to a single line, and if they want to put another line in, they have to pay again. An oil & gas attorney can be a big help to keep you from making a long term mistake.
Don’t be fooled by price per rod, they are not taking a rod which is a linear measurement, They want square footage on either side of the planned pipeline.
If they don’t have eminent domain rights as a common carrier, then they must negotiation. Even if they have eminent domain, don’t be buffaloed.