I have a company asking to place a new pipeline parallel to an existing sour gas pipeline on my property. It may require some widening of the existing easement which I use as as a hunting sendero and a creating a new easement. I'm open to the idea unless it means the brush has to be cut back more than 3 feet.
The offer is $50 a rod and I have about 1400 feet where the new pipeline will placed on my property. It will serve the drill location right across the road from me.
Is this the going rate for a new pipeline?
Will this impact any future lease offers? How?
Is it even worth considering in regards to any inconvenience?
What else should I ask about this venture?
Thanks
Hi Humberto, where is the land located in Atascosa Co ? A survey abstract would be best to locate your land. The pipeline easement (ROW-Right of Way) depends as to where the line originates from. Pipeline coming into your lease from outside you get to strike a deal. What is diameter size of pipeline and what is the product, natural gas, salt water or products ?? Who is putting in the line and for what company ,unless both are the same? I'm guessing it's Cabot. Answer those questions and I can give you range to ask for. You can leave your # if you want privacy.
Chuck
Humberto-
Not sure what size pipe or pressure, but sounds low. Google UT Lands Damage Schedule and use it as a minimum, as it is primarily used in West Texas, but even there, 2x or 3x what is in that schedule is common.
Chuck--right off of Fm 140 on Cr 341on th T Berryhill Survey. You can see that there is an existing sour gas pipeline which this O&G company is looking to parallel the new line. I heard the diamter to be 16 inches but not sure if only oil or gas or both since I was told by rep it will hook up to the site being drilled which is acroos the road from me. Could be same company putting it in that it is for. answers on here is fine. Thanks.
Wade-- thanks . i will.
hopefully my neighbor will also consider the deal casue without him there is no deal. the pipepline first runs through his land diagonally into mine then out to another property.
Humberto, this line probably is for Cabot O&G but could be pipeline company working in tandem with Cabot. You need to inquire as to line being for natural gas or salt water or oil . The existing 16" gas line there is a sour gas line. Probably a gas line but you need to ask. $10 /ft is fair price for ROW ,not saying you could not get more but the key word, fair, is clearly subjective.
Humberto Hernandez said:
Chuck--right off of Fm 140 on Cr 341on th T Berryhill Survey. You can see that there is an existing sour gas pipeline which this O&G company is looking to parallel the new line. I heard the diamter to be 16 inches but not sure if only oil or gas or both since I was told by rep it will hook up to the site being drilled which is acroos the road from me. Could be same company putting it in that it is for. answers on here is fine. Thanks.
Wade-- thanks . i will.
hopefully my neighbor will also consider the deal casue without him there is no deal. the pipepline first runs through his land diagonally into mine then out to another property.
Well. Things change quickly. the O&G company has considered a different route for now but has indicated that it may change again back to my property.
Chuck--$10/ft. wow that is more than what was being offered at$50 / rod if my calucaltions were correct.
Quick question- Is there a time limit on the pipeline being in place? is there a renewal period of 10 years that can be placed on the easment for which another payment could be made or removal of pipeline if there is no more production?