gas pipeline easement ??????

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Ohio Cowboy

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Well it finally happened to me. A rep from the gas company came knocking and wants to put a 36inch main line right thru the back end of my pasture. Some local farmers tried to fight it in court and as expected lost so this is pretty much a done deal. Were now at the pay per foot part and contract phase. Rumor is they are offering 25 bucks a linear foot to start negotiations. So my question is who all has dealt with this?? Did you hire a lawyer and give him 25% of everything collected over the 25 dollars per linear foot, or did you deal with it yourself? What are some for sure things i want in the contract???
 
Ohio Cowboy":22ec7k5c said:
Well it finally happened to me. A rep from the gas company came knocking and wants to put a 36inch main line right thru the back end of my pasture. Some local farmers tried to fight it in court and as expected lost so this is pretty much a done deal. Were now at the pay per foot part and contract phase. Rumor is they are offering 25 bucks a linear foot to start negotiations. So my question is who all has dealt with this?? Did you hire a lawyer and give him 25% of everything collected over the 25 dollars per linear foot, or did you deal with it yourself? What are some for sure things i want in the contract???
I've dealt with it and let an attorney negotiate (which ain't much). Attorney charged by the hour. Most I ever got was $30 a running foot but you can also usually get a few "freebies" thrown in like doing a big of dirtwork, new gates, leveling, etc. My experience is that they are not impossible to work with.
 
Absolutely hire an attorney well versed in oil/gas leases. There's a lot more to be considered than just the rate. Clean up, fences, reseeding, etc… all need to be specified.
 
I agree with everyone on the attorney. Let me throw one more source of revenue. There are two easements to consider. One is the permanent easement and the other is the construction easement. The permanent easement may only be 40' wide but the construction easement may add another 100' (or more). Make sure you collect for tearing the heII out of your land while they are building the pipeline and then maintain the ROW for an additional 10 years to accommodate settling, etc. Personally, I would like to see the pipeline buried at least 6' but more typically it is only 4' from the top of the pipe to the surface. JMO
 
Get a lawyer that knows this business. They put a pipeline in here and I think they got a heck of a lot more than $30 a foot, this was through good crop land and some of it didn't raise much after they were finished.

Larry
 
They negotiated a right of way on two of my new pastures here in OK just before I purchased them. The amount per square foot, re fencing, replanting etc all came standard and it seems like the list of other demands is all that needs to be negotiated. They are supposed to clear and extra twenty acres of timber and maintain one of my roads that is close to their right of way, for example and all the previous owner had to do to get that was show them what he wanted.
 
When I was buying gas line right of ways in West Virginia 35 or so years ago, the company I worked for used a standard contract that stated $1.00 per inch of diameter of pipe 4 inch was $4.00, 6 inch was $6.00. But that was per rod which was standard then we also reclaimed reseeded, installed gates when we went through a fence. Paid damages to crops and worked with landowner with little projects that they had to a point. Sometimes they even got a little more when the construction crew came through.
After the pipe was laid I would go with landowner and decide on damage and make sure they were satisfied with the job. So I think $36.00 plus damage would be good but make sure it is in writing and watch them close. I don't know how they do it now but I would check with landowner 3 or 4 times while we were on their land.
 
The company that installs the pipe won't be a problem. It is the sub contractor with the contract to maintain the easement that will have you pessed for the rest of your life.

The company that maintains the pipeline running from Houston to Baton Rouge uses a company that hires work release inmates for tax breaks. So once a year we have an unsupervised group of inner city drug dealers eyeballing everybody's property. More than one has been arrested coming back to steal pecans after they had finished with the easement. Few years ago they ran through here cutting everyone's fences to make shortcuts and letting cattle he loose.
 
If done right, it can be a good thing. Big picture, these pipelines are employing people and we need that.

Besides some of the other suggestions and getting an attorney,
Put in specific damages for exceeding the designated right of way during construction. Something like 3x's damages.
It's important to have the corners errected and the wires secured before they are cut.
Require that the top soil be replaced on top.
Once the pipeline has been dormant for such a period, it requires being released for use.


They've been easy to negotiate with. If they don't hold to the contract, just make it financially beneficial for you.
 
All good answers here. Thanks. They just started work on a pipeline 10 miles south of here and those guys are getting 300 per foot. So right now they are a bit low with 25 a foot.
 
They just put a 36'' through my neighbor, did not miss me by much, but I wish it would have came through the middle of my place they leveled the land reseeded cleared brush and hauled it off put up nice gates and he even got money for them to improve his land. :2cents:
 
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