Discussing the Eagle Ford, Pearsall and Permian plays
I have some property in LaSalle Co they want to put a pipeline in with a 30' easement. Does anybody know the going rate per ft. on something like this
Depends on the size of the pipe and number of pipes in the easement for starters, typically $2/circumference inch per foot is a good general rule, it is a negotiation but one must be careful as in some cases they can let the court decide after they use their imminant domain to take the ROW from you so be careful not to push too much but to get a good oil and gas attorney involved to review the documents and language. We have had 3 lines come across different sizes but one paid $15/ft. per pipe another we got $26/ft. due to it crossing close to our house on the property so we included home site damage in it,
Hope this helps, and yes we are in Lasalle county as well, get all you can don't leave anything on the table but at the same time be knowledgeable to the fact of imminent domain rights of the company you are dealing with.
believe you meant to say diameter inch Double G
That is correct...
I have seen people get paid anywhere from $7.50 per linear foot for a 60' ROW to $25 a linear foot with a 30' ROW. Depends on the location and how badly the company wants that particular route. I know of one person who signed a deal with EOG for a ROW, got paid, and EOG never built the line, so the easement reverted. Be sure you get an agreement where the easement reverts back to you if the line is never built or abandoned!
I was able to get $34/LF for a 50 ft easment one 20" line
The last one I did in that area was was $20 per liner foot or $330 per rod...
I have just been offered $30/ft ($500/rod) for a 30' easement to install a single 6" gas line in LaSalle County.
Thnx J.R.! Do you mind letting us know the operator's name? Hunt is still buffaloing folks with MUCH lower offerings.
The truth is that no two pieces of property are exactly alike and a pipeline will affect each tract monetarily in different ways. Restricting the future land use development of property is a big issue. That's usually the big unknown. Like all real estate, it's a matter of location, location, location. A pipeline can have significant future negative implications on the overall value of your land. For instance, the Enterprise Pipeline began innocuous enough with a single line that has grown to many large diameter pipelines having a very significant impact on the land. Who knows what future use a pipeline ROW will have. A ROW under eminent domain can even conceivably be used for electric transmission lines. Unless you have no choice, not having a pipeline is far better for your place.
In south Texas, the highest and best use for the land is for pipelines. Just look at the per acre payments on pipeline easements and you will see why I am saying that. Except for permanent building structures, there is no limit to the use of the pipeline easement area for other improvements. All pipeline companies require an encroachment permit from a landowner so whatever the landowner wants to build needs an engineer's approval. That is for your protection as well as the pipeline company. It's a liability and safety issue.
Unless the easement specifically states that a power line is included, then it isn't. Possibly an underground power source "could" be considered as part of the below surface rights, but no above ground rights including meter and valve sites unless specified in the document. If an above ground site is either within the easement document or as a seperate document, then a possible power line may be required. Usually the pipeline company will also negotiate and pay for the electric easement using the local power company's easement document form.
A pipeline on a property that is transporting that landowner's oil&gas is of great benefit to them. A pipeline corridor isn't much different than a sendora used for a shooting lane or quail. They are everywhere. Just look at an aerial photo of every county, and then look at pipeline rights of way, not much different except you got paid by the pipeline company. There is no evidence that a pipeline easement has depreciated property values. Ask any real estate agent if any of his properties for sale have been discounted because there was a pipeline across the property. Never happens.
Any encumbrance on your property affects your market value! You can actually get that portion taken off for taxes at the appraisal district. I have my real estate brokers license and have previously bought right of way for the last 7 years. The term highest and best use is a term an appraiser uses to determine the market value. Nowhere in history I have ever seen it be determined an easement! The main thing to argue when having an easement placed on your property is to argue damages. Unfortunately the property value is the property value, and most easements depending on what rights they are wanting are valued at 50% of fee value. So you can very much see the oil field is over paying. This is mainly do to there time frame and not having the right to eminent domain.
As far as placing other things in the easement, it would have to be spelled out in the document. One example is you can make it only one pipeline so they have to come back for anything aerial or additional lines.. IMO I would try and have them placed on the edges and not straight through your property. I have never seen any company allow you to place a permanent structure on the easements. Now granted in south Texas most likely you won't, but I have seen in west Texas (Snyder area) the utility company made them remove water troughs from the easement.