Anyone know the going per rod rate for 8 Inch pipeline right of way in Kansas?
Mr. Jameson,
There are a lot of variables, such as -- do they have condemnation power? If not, do they have viable alternatives to go around your property? Also, the size of the line and what it transports. The agreement is a HUGE part of the process, or should be, since pipelines spill 3 X the oil that railroad cars do. Surprised me, too.
Buddy,
The ROW is for Natural Gas, 8 inch line, they do not have eminent domain. Looks like the would have to re-route a mile to get around me. I've asked around and gotten varying prices anywhere from $25/rod to $75/rod. This is a short distance line.
Thanks,
John
Mr. Janeson, I'm more expreienced with water than oil but 8 inch sounds like more than just an ordinary gathering line to me. I could see the product of 20 to 50 wells or more moving through an 8 inch line.
I think distance of the line would be beside the point other than the distance it crosses your land, the only reason I could think of for them to tell you it is a short distance line is to make it sound like no big deal.
From what I have learned, the price per rod could be the least important point of the deal, including the diminished value of your property from having a line run across it. If they offer you $40k to run the line across and your property value is diminished by $40k, how much would you make?
Indemnity, diminished value, damages, yearly rental, no surface appurtenances, split payment for any part that is taxable so that you don't receive it all in one year and give a larger portion of it than necessary to the government.
I'd try to hire some professional help while studying as much as I can, I think it would pay dividends.
By short distance I mean it is not a interstate line. It is a line running from one processing facility to another. I fully understand the risks involved, diminished land value etc. I just wanted to know what rate per rod is going for in Kansas.
Thanks for your input.
Dear Mr. Jameson,
Here is where I would start. First, negotiate in good faith.
Second, feel them out as to $1.50 per foot per inch of diameter. So, an 8" line X $1.5 = $12.00 per foot x 16.5 feet in a rod = $198 per rod.
Third, is a walk away price. What is the least that you would take before you tel them to walk away?
Fourth, negotiate a term ROW, with optional extensions for additional terms, like a rental.
Fifth, limit the ROW to one line only, only carrying hydrocarbons.
Sixth, a real good agreement. One that protects you. Make sure that the line is buried at least 48' below the surface. Pipeline spill 3x the oil and water than railroad cars. Want to have your earth salted like Carthage?
I am writing a series on pipeline ROW actions and will let this forum know when the have been approved on the blog.
This is step one in the pipeline process that I blogged about:
http://www.mineralrightsforum.com/profiles/blogs/the-first-step-in-the-pipeline-process
DEAR BUDDY COTTEN,
I had no idea an investigation was on going with Prodigy. Until Now, it's the first time I've seen it.
Can ROW be for limited term? How can I find out what rates are in my county - Creek County, OK?
hello mr cotten, i am a new member to this site and seeking some information on a pipeline to be installed on my property. burke royalities has contacted me about installing a 6" natural gas line and a future 4" saltwater line. they want a 40' row during construction,later reduced to 30' permament row. they have offered $ 168.00 per rod for both pipelines,but as i said,they will only install one now.the way i figure this,40'*4'*840'=134400 sq ft which equates to almost 3 arces of property for as long as they are transmitting their product.this seems like a pentance of what they will make.any suggestions or a good lawyer around madison county tx ?
Randy
Where do you get the 4 ? is that the depth? I think it should be 30' x 840 which is .58 ac or worse case 40 x 840 is .77 ac. Bossier line runs across the back with 50' ROW with 25' each side for contruction they have 1.9 acres of my land with the 50' easement. I think previous owner got more for the trees than for the ROW. Plus I think the damage is not taxable where the ROW payment is taxable. Make sure you have them bury it deep enough!! They had to come back in a few spots and redo some of the Bossier line. Big mess. at 168 per rod and 30x840 you are at $14746.00 per acre value.. JMO
Hello Mr. Cotten,
In regard of price per linear rod. For example, $198 X 126 rod (10acres) = $18,909. Is it a onetime payment or the monthly payment? or what is the fair way to deal?
Thank you.
Phil Nguyen
Phil,
From our negotiations on the ROW it is a one time, life time payment as it was for my parents on an ROW in the 60's. The land owners are getting ripped off as the oil/gas companies transport their product for free across our land and make millions in perpetuity. However Texas law is in their favor. our depth was 36 inches. I wrote up our experience a p a couple of years ago, see page 3 or 4.
Make the lessee pay your attorney fees and get as much per rod as possible because once you sign that is all there is. Mr. Cotton is correct in that damages are not taxable. They should break out damages and the ROW lease amounts as separate items on the agreement for tax purposes.
Hope this helps, Mike
Phil, Be sure you know what you are signing when it comes to ROW as you may not even be able to drive across it again if you sign the wrong contract. You can’t build on top of the ROW, they will cut your fence and tell you they can put it back as good as it was. ?? Be sure they will come back and fill the ditches and replant the grass. Also, if the line isn’t used anymore, you have the right to pull it and get a release and it’s only for one line. I have a gas line on one of my farms that was laid in 1930, not in use, but they sold it to another company and they put another line next to it.
Mike an Virginia,
Thank you for your recommendation. Much appreciated.
Phil.
Josh,
You should get at least those amounts listed in the University Lands Rate Damage Schedule found here: http://www.utlands.utsystem.edu/forms/pdfs/rate_damage_schedule.pdf. The rate varies depending on the size of the pipeline and whether it is to service wells on your land.
In addition to the price, you should seek to modify the Pipeline ROW Agreement terms as they probably favor the O&G company too much. Here's a blog post I wrote for this website with tips a landowner should consider with negotiating Pipeline ROW Agreements. http://www.mineralrightsforum.com/profiles/blogs/pipeline-easement-and-right-of-way-agreements-a-landowner-s-list?xg_source=activity.
Feel free to send me a private message if you have any additional questions. Best, Eric
Good Morning,
We have 240 arces for lease not for sale, there are 4 of us it is located in block 35 section 2 T4N, please let me know if you are interested in this, contact me on here or at [email protected] Thank you
What are right-of-way pipeline prices in Karnes County for 8 inch line? Either per foot or per rod? Anyone familiar with Ironwood Eagleford Midstream?
Is anyone with surface rights negotiating with Medallion Delaware Express Pipeline for an easement in Ward County, TX? I am familiar with the University of Texas rates which are stated as minimums. I was wondering what rates were being consummated. Thanks in Advance for your thoughts!
New here, hoping someone has some answers...Targa is going to build a 30 inch pipeline going from West Texas down to Houston...they're calling it the Grand Prix pipeline. It will go through our land in Pecos/Ward County area. Haven't received an offer myself yet, but heard they're initially offering $50/rod for 50 foot permanent easement, 75 foot work space. I know that's real, real low. They have eminent domain power. University rate is minimum $224/rod, but that's for a 10 year renewable easement, not a permanent easement.
Any thoughts or strategies on how to deal with them?
What's a fair rate to settle on? What's a really good rate to settle on?