Pipeline Leases Effect on Mineral Rights Values?

Texas Mineral Rights Ward County, TX
1

Good Day to Fellow Mineral Rights Owners and Texans,

I have never seen this issue in the Discussion Forum and actually have two items for thought.

The first issue is How/If surface pipelines affect mineral rights value. The second is the Negotiation of Removal of Abandoned Equipment.

I have had another pipeline proposal for the land in Ward Co., Section 182, Block 34. Will this have a negative effect on the value of my mineral rights? There is one pipeline currently in existence since 2012 from Horizon(?).

The agent for the company wanting to lay this line actually told me that the line would increase the value of the property, since it is evidently large and of excellent quality. I wanted clause stating that the company would remove the equipment from the land once they were through. I have seen more land with abandoned and derelict oilfield equipment than I care to think during the many years I lived in Texas.

I know the other owners are agreeing to agent's lease terms of $80.00/rod without regard to removal of abandoned equipment. This being the case, I've really no alternative but to go along.

It just occurred to me that if the surface land will have two pipelines, I have no idea what it means for the current and future values of my mineral rights.

Any opinions on either or both subjects would be greatly appreciated. Thanks kindly for any replies.

2

I believe the effect on mineral rights would be negligible to non-existent.

Possibly what the agent meant was that you would be paying higher property TAXES for having the pipeline, not that your property would become more desirable to someone else. Not something for the plus column in my opinion.

This is a matter that I really think you need professional help in negotiation, it's not just a matter of loss of money which would be bad enough but loss of use and damage to your surface, and loss of money.

3

Who is the pipeline company?

Ask for more per rod, I got $250.00 per rod which included attorney fees. Don't do the right of way with out an attorney as the details are extensive . Once you get paid that is all the money you will receive. The ROW is attached to the property for perpetuity and passes to heirs. Try and get an annual lease payment as the pipeline co and oil/ gas companies are moving millions thru the line?

Mike

4

Forgot to mention that Texas law allows for condemnation of your land for the pipeline if you do not agree to lease terms. Did the pipeline co. send you a letter stating their intentions with a copy of the Texas law attached? Again don't do this without an attorney!

Mike