We have property along 123 and it's leased to EOG. They have recently contacted us and are offering $18.00 a foot to install multiple piplines along our property. Does anyone know what a fair price per foot is?
You have to give some specifics. How many lines, diameter of lines, width of temporary easement, width of permanent easement, might as well throw in what the lines are carrying, any surface fixtures and are they seeking exclusive easement ? Do you know how much these pipelines are going to diminish the value of your property? Suppose they pay you $50,000 for the pipeline easement and it diminishes the value of your property by $60,000, you just lost $10,000. Is it ok with you if they come back every two years and dig it all up and install another line? Do you mind if they allow some other company to run a line across your property charging them ten times what they are offering you? Just some things to think about.
In addition to RW's comments about the permanent change in value of your land, you must evaluate the operational loss to your property as a result of a pipeline easement. This decision is sight specific to your ownership and use of the surface. Give it some deep thought. The offer only reflects what EOG is willing to pay for the rights it wants.
r w kennedy said:
You have to give some specifics. How many lines, diameter of lines, width of temporary easement, width of permanent easement, might as well throw in what the lines are carrying, any surface fixtures and are they seeking exclusive easement ? Do you know how much these pipelines are going to diminish the value of your property? Suppose they pay you $50,000 for the pipeline easement and it diminishes the value of your property by $60,000, you just lost $10,000. Is it ok with you if they come back every two years and dig it all up and install another line? Do you mind if they allow some other company to run a line across your property charging them ten times what they are offering you? Just some things to think about.
The longer I follow this website, the more it perplexes me to wonder who these people are who expect an educated response to their "open ended" questions that even an educated guess would not suffice.
Is 123 next to 456?
Thank you.
Pat
You ought to get AT LEAST twice maybe three times that much per foot... PER PIPELINE... plus damages and plus any timber cut down. Of course a lot depends on just what R.W. Kennedy and Mr. Hutchison said in their postings. and remember... pipelines are forever... sort of forever.
Good answer Pat. My exact thoughts.
Clint Liles
Ms. Pat Malone said:
The longer I follow this website, the more it perplexes me to wonder who these people are who expect an educated response to their "open ended" questions that even an educated guess would not suffice.
Is 123 next to 456?
Thank you.
Pat
good one Pat
jhh
Clint Liles said:
Good answer Pat. My exact thoughts.Clint Liles
Ms. Pat Malone said:The longer I follow this website, the more it perplexes me to wonder who these people are who expect an educated response to their "open ended" questions that even an educated guess would not suffice.
Is 123 next to 456?
Thank you.
Pat
No doubt it's a complex issue. I worked with a fellow years ago who was thrilled to get $10 a foot and if that was the only line and he hasn't sold his property, I think he probably believes he made a good deal. The thing is you have to address all possibilities that you can think of and try to anticipate the future or you have a financial time bomb. I think it's less of a matter of maximizing profit and more a matter of avoiding future loss.
Ms. Malone,
These people asking open ended questions have likely never dealt with the issue they are asking about and do not have the experience or enough knowledge about the subject to ask more detailed questions. I have been in that same position before.
I appreciate the forum members who are nice enough to point out some of the many things more important to consider than just $/ft. These expanded answers are one of the main reasons I continue to make this forum part of my usual reading.
I'm wondering about the 123 too.
Ms. Pat Malone said:
The longer I follow this website, the more it perplexes me to wonder who these people are who expect an educated response to their "open ended" questions that even an educated guess would not suffice.
Is 123 next to 456?
Thank you.
Pat
The regulars here understand that and that is why a Thread is pinned at the top of this discussion area to provide guidance to newcomers.
Tips For Asking Questions in the Forum
If people read it and follow the guidance, the discussion develops much more quickly with the hope of quality responses and help.
When people disregard the guidance in that thread , it often takes several iterations of questions and answers before the community is able to really help.
The problem isn't with the actual questions, but rather the lack of sufficient background information in the initial post.
Wilson Inc said:
Ms. Malone,
These people asking open ended questions have likely never dealt with the issue they are asking about and do not have the experience or enough knowledge about the subject to ask more detailed questions. I have been in that same position before.
I appreciate the forum members who are nice enough to point out some of the many things more important to consider than just $/ft. These expanded answers are one of the main reasons I continue to make this forum part of my usual reading.
I'm wondering about the 123 too.
123 is St. Hwy 123 and the property is 40 acres. EOG is proposing a pipeline across the property to tie-in to another already existing pipeline on another property leading to an already existing well. Sorry for the ambiguity...gees, tough crowd.
I'm sorry about sounding a little short in one or more of my responses. i don't mean to be. many times the written word is harsher than the spoken word. i also might have sounded a little greedy in the price per rod you are being offered for the pipeline. but landowners need to be very wary because a pipeline is forever and it does reduce the use and value of your property. i've always figured the price per "rod" for pipeline. and i think there are 16.6 feet per rod. many people are getting between $200 and $900 per rod for a pipeline. depending on the size of the pipeline... product being shipped and MANY OTHER things. some of the people on this blog will offer some good advice. but they can't do it unless they have more information. plus, i think pipelines are a lot safer and cheaper than trucks and trains for delivery of oil. good luck with your negotiations.
A piece of pipe is about as simple as it gets. When you add a valve or any fixture, moving parts, things go down hill from there. I believe that pipelines spill more, the recent train wreck in Canada and the lesser amounts that trucks could spill notwithstanding. I have dealt with a lot of pipe in my life and there is one thing I am sure of, if it's never removed and it stays in service it IS going to leak. It may take 100 years but it is going to happen. Not a reason to not have the pipeline unless you are a rabid environmentalist but something to take into account.