We have been approached by a company to pay us $950 for a 20-30 ft easement for a pipeline in the Flintlock area of Ward County. There are currently 4 producing oil wells on our property. This seems like a fair price, but just wanted to be sure.
Thanks for your input!
Is that the length of the easement or the width? If the width, what is the distance of the crossing? If just for a 20-30 ft run across your property, it sounds like it's not a bad deal. But if it's a 20-30 ft wide swath that runs through a few acres, I'd say you need to renegotiate for something better. But, I temper this by saying I don't know anything about these sorts of things. I only offer an opinion....opinions are like belly buttons....everyone has one.
Billy, I will probably be disagreeing with everyone but to me $950 is not enough. First of all, you need paid for advice, from a profession who negotiates easements and at the very least, your trusted lawyer. How much of the $950 is going to be left over after that? There should be a minimum value to an oil and gas industry deal.
What about your property value? Having a pipeline easement will diminish your property value, You could lose $10,000 in property value. I realize that it's just a little pipeline. I would consider that a little pipeline is like being a little bit pregnant, for the purposes of property value, you either are or you are not. I suggest you consult with someone in the real estate field for an estimate.
To me, fair value would be $x___ diminished property value, $x___ legal and consulting fees, $x___damages for pipeline/ temp/permanent easement, $2,000 per year rental, pegged to some commodity for purposes of inflation, for any continued trouble that you may have in the future.
If they don't want to pay it, they can go around. Oh wait, they can't! I am not saying ask for $100,000, what I described above is just breaking even with a small amount of profit, tiny really. When you buy anything from anyone, you are paying their legal fees and professional consulting whether you know it or not, whether even if they know it or not, and if they have paid nothing for advice, that was their own choice and they do it at their own risk, whether it be a car you are buying or a toaster. I'm just saying, don't sell the easement at a loss. Good luck.
I agree with get legal advise first and don't agree or sign any documents.
We entered in to an ROW with Enterprise Crude Pipeline Co., LLC of Houston TX and it took almost a year of negotiations until we settled. The price they offered at first was a low ball price "PER ROD" of $50.00 and about 30 feet wide for the easement.
Our first contact was a letter from the company with a copy of the "Texas State law for CONDIMINATION PROCEEDINGS"; you are forced into a corner and have no other obligation but to negotiate or they can take the land they need. The other aspect is the easement is perpetual and passes to heirs. There is not a annual lease payment; once you sign and agree to terms that's it for life. We received $250.00 per rod which included attorney fees.
$950 dollars "PER ROD" is a great deal for crossing your property if you can get it. Get them to pay attorney fees.
I would ask for an annual lease payment (large) with an annual increase based on the CPI, perpetual. I don't think you will be able to get it but go for broke and set new standards for all ROW owners.
The pipeline Co, oil & gas companies will move millions of dollars through the lines for years and we get a fragment of payment for the use of our easements.
Frankly I think land & mineral owners in Texas are getting shafted by the Oil companies, Pipe Line companies and the State of Texas. I think the time has come for the land owners and mineral right owners to take on the all the above companies and agencies in a class action suit.
Get as many $$$$$$$ as you can.
Also there is an ROW owners group which discussed the ROW issues.
Mike East said:
I agree with get legal advise first and don't agree or sign any documents.
We entered in to an ROW with Enterprise Crude Pipeline Co., LLC of Houston TX and it took almost a year of negotiations until we settled. The price they offered at first was a low ball price "PER ROD" of $50.00 and about 30 feet wide for the easement.
Our first contact was a letter from the company with a copy of the "Texas State law for CONDIMINATION PROCEEDINGS"; you are forced into a corner and have no other obligation but to negotiate or they can take the land they need. The other aspect is the easement is perpetual and passes to heirs. There is not a annual lease payment; once you sign and agree to terms that's it for life. We received $250.00 per rod which included attorney fees.
$950 dollars "PER ROD" is a great deal for crossing your property if you can get it. Get them to pay attorney fees.
I would ask for an annual lease payment (large) with an annual increase based on the CPI, perpetual. I don't think you will be able to get it but go for broke and set new standards for all ROW owners.
The pipeline Co, oil & gas companies will move millions of dollars through the lines for years and we get a fragment of payment for the use of our easements.
Frankly I think land & mineral owners in Texas are getting shafted by the Oil companies, Pipe Line companies and the State of Texas. I think the time has come for the land owners and mineral right owners to take on the all the above companies and agencies in a class action suit.
Get as many $$$$$$$ as you can.
Also there is an ROW owners group which discussed the ROW issues.