Anyone know the current rate for pipeline right of way or lease(which is it)?

I know nothing about this.
Other than that you negotiate something.
Been approached to allow access for survey.
Should we be compensated for the access to do survey or is that unreasonable? Can't imagine measuring being that messy.
Shoudl I spefically tell them to not make a mess or clean it up after the survey?
Do they give you a copy of the survey after its done or do you have to ask?
Once its done, how long before they come with an offer to lay the pipeline.
Saw document on what to negotiate, but I am still reviewing it.
Do you or can you get a payment per year, per qty or volume through the pipe? How else can you benefit from this?
This has no bearing on whether they drill or not?
How long after pipeline does the drilling start?
SE DeSoto Sec 31 11 12.
Where else can I get current info on what to negotiate and for how much?
What about timber, how is that compensated?

Tags: lease, negotiate, of, pipeline, right, survey, way

Views: 165

Replies to This Discussion

I think that there is a sample Right-of-Way Agreement on this site under the forms area, I will check. You should have a qualified attorney speak with you about it because there are many, many items to consider and that need to be explained to you by the attorney.

The highest amount I have seen as a pipeline rate is $400.00 per rod. It was executed and recorded in DeSoto Parish records in March or May, 2009. I think it may have been paid by Encana in the Caspiana Field but I am not sure but I can look it up for you in the morning if you would like.

If you do have timber, you may wish to have it in the Agreement that any appraisal will be performed by a timber company of your own choosing.

You might need to ask the company wanting to lay the pipeline:

What type of a pipeline is it going to be?
What size?
Will it be to service only wells that will be drilled in your unit?
Will it be used for production of any surrounding units?
If your property is large, will the pipeline split your property in half or limit your access road through your property?
Good thoughts! Here are some more:

1. The pipeline payments tend to be contingent upon the size of the pipeline being laid, the larger the pipeline and the ROW required, the higher the payments. (It is also a function of who is building the pipeline -- the companies have different amounts of cash on hand -- pockets are different sized, and at least one company is property rich and cash poor.)

2. I know of one individual who received $400 / rod for 'general' access, and $350 for any line serving "his" well, but that was for a large pipe, 24" or 36", I think.

3. Normally, you should be able to get paid for the timber on your land--if any--and be allowed to salvage it before they lay the pipeline. Further, you should consider that you will lose the timber growth on that land for the lifetime of the pipeline, so you need some compensation for that as well.
I think we got $100 per rod a year ago. They gave an estimate for the trees. We accepted. Probably went too cheap. Make sure they bury below plow depth and fill in sufficiently after they are finished.
It is a one time deal. You only get one check regardless of what is going through the line. They may be transporting gas over your property instead of from your property(so there may be no well).Ask where the line is coming from and if they are going to drill. GL!
The Surface and Subsurface Agreement that I mentioned above was granted to Petrohawk in the Caspiana Field on 5-12-09, File No. 663688, Book 1007 Page 536.

"Grantee herein agrees to pay to Grantor(s) $400.00 per rod for the Flow Line Right of Way."
I am in S/W Desoto. Neighboring property owner signed pipeline agreement for a 30' wide right of way for $275 a rod (16.5 ft), AND $2,500 per ac. for surface damages. Also, this agreement allowed for only ONE pipe, meaning of course that if in the future other pipes were to be laid, then money would change hands again. BTW. it was requred that this 30 ' ROW was to run along the EDGE of the property NOT across it. Finally, I read another report recently of a landowner being paid $300 a rod. Hope this info helps.
Right of way person responded to an email I sent inquiring when they were coming to complete the survey they requested a few weeks ago. He responded that they had to reroute the pipeline so they would not need my property at this time. we exchanged a few more emails in one of those he mentioned on for the other l/o near or adjacent to me did not have 'clear title'.
I asked if this owner's un-clear title would delay drilling in our unit, he said, no.
My question now is, if it affects right of way for pipe, how could it not affect drilling? If they have a property they are not sure of the title correctness, will they avoid our unit altogether?
He never said the pipe was rerouted because of the other property's inability to produce a clean title, I am assuming that.
And ondering how un-clear a title could get....not that there were wills in abundance in our clan, but when birth and death certificates were requested 95% of us had them, so we were able to produce them.
FYI, we recently (last year) executed a right-of-way agreement for $500/rod with Centerpoint Energy...big utility out of Houston. They were laying a 42" pipe, I believe. We have recently been contacted by ETP/Tiger pipeline. They are trying to negotiate for acreage crossed and are much lower. Presume they will come back to a rod calculation.
I believe that we are currently negotiating $300 per rod and $3000 per acre with Chesapeake. (Red River-Bull Bayou Field in DeSoto Parish)
How a many lines are they asking for? I am in that same area. I got an offer for 300 per rod fromEncana. 50 wide and no indication on line diameter. They wanted to be able to put in up to 4 lines before they have to pay me again.I said no to that. Anyone with suggestions?
Hey Kim, Has there been any progress with your negotiations? Thanks.
havent heard a word . seen a few states on my property last time i spoke with my attorney he said they had not brought up compensation yet . and keep in mind people when theres another 42 inch pipeline coming beside the tiger pipeline called the anr from trans canada. they have completed the open season were going to get hit again


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