Hello,

I am new to this forum and have joined for a very specific purpose. The Sabal Trail pipeline project that will run from northern Alabama to central Florida crosses a couple of family properties in south central Georgia. One property is agricultural crop land and the other property is managed timber land. I have been to researching  what the maximum price I could reasonably expect (or not so reasonably) for the easement. The pipeline will be a single 36" underground pipeline. Sabal wishes to acquire a 50 foot wide permanent easement and a 50 foot wide temporary workspace easement. They have extended an offer based on a per acre price of $1,700. From what I can gather, most easements are based on a price per linear foot or per rod. Also, I have seen where the size of the pipe is a component of the price. The FERC has not yet granted a certificate, but is expected to do so since they rubber stamp about 95% of the applications. My questions are as follows?

1) Is there any reason why the value of an easement in south Georgia would be any different than the value in any other part of the country?

2) If my goal is to maximize the amount I get for the easement, where should I start?

I am appreciative of any insight that can be provided and thanks to whomever started and maintains this website.

Respectfully,

Al Funderburk

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The tiger pipeline by energy transfer paid landowners 750 dollars a rod for a 42 inch line.

They have started making offers based on their agents estimation of fair market value. The offer they made to me was $1700/acre. Another land owner that I know of had an offer about twice the amount they offered us. He finally settled with them for somewhere around $6000/acre. Why would they price an easement by the acre in Georgia and by the foot, foot-inch or rod in other states? What is the going rate in rural areas of different states? Randy Dawson are you still around? If anyone would to share information privately, my e-mail address is a1@fn-cpa.com and my phone number is (229) 985-7900. Thanks again for your input.

Al

Al...sorry have not been on this page in a while....I will look for my easement contract tomorrow when I get back to the Longview, Tx area, and try to send you a copy....There is so many things to list in the contract.  You will need to be sure they put topsoil back on top and not mix....I do not remember all I mentioned before.....OH, no guns to be carried on your property....liability issues are of big concern....I copied your email and phone number so will try to contact you in a few days with info. 

Re:  Why would they price an easement by the acre in Georgia and by the foot, foot-inch or rod elsewhere?

Probably because most people are familiar with acres, and acreage prices in general, and less so with rods, so it is relatively easy to make the landowner think he is getting a better deal than is true.   I do not know what land sells for in your area of Georgia.  Here in NW Louisiana, even good timber acreage does not usually exceed $2,000 per acre.  

Our family sold several gas line ROWs for upwards of $500 / rod, or > $17,000 per acre.  However, that was during the Haynesville high boom, and the drilling companies HAD to get their gas to market or potentially lose important leases.  So there was great urgency on their part.

The value of an easement should not be any less than the value of the land itself "across the fence". Such easements forever prevent development. They are a hazard. They are a PITA especially after they get old. If land is selling for $3,000 an acre, I'd want the same.

The 42 inch line that came across Rapides Parish a couple of years ago, they were paying way more than the property value. I think my cousin got $38,000 per acre. This is farm/ranch land, not timber.

42" pipe line in  R. R. parish ...........$1 per SQUARE foot if property can not be condemned......if someone like Center Point, can and will condemn...... maybe $750 a rod

I am having a hard time wrapping my head around the idea that an easement is only worth the FMV of the land across the fence. My understanding is that the landowner should be paid FMV for the dirt plus damages for crop loss, potentially loss of future revenues plus any dimunition in value to the remainder of the property ( which has been established by numerous courts across the country).

How are property taxes determined/valued on easements?

In Ga ag and timberland are valued based on soil type if the property is in a conservation use covenant. Otherwise it is valued by county asessor. County millage rate is then applied to 40% of the assessed value. Taxes on our proprtey have increased at an average annual rate approaching 5% since 1891.
Easements are taxed the same as the contiguous land.

The pipeline people doesn't have to pay those taxes, just the property owner, right?

So the pipeline gets to use the land for as long as they want and the land owner gets the tax bill, huh?

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