What are the pro's and con's of having a pipeline cross your land? Payment currently offered is $350.00 per rod. I'm thinking that having that pipeline there is a forever and ever thing that can determine how the land can be used from now on. If there are planted pine trees should the company laying the line offer to pay their market value as well?

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You are right about the "forever and forever". Once the pipeline is laid across your property it is there and the gas company has the right of egress also. Yes, you should negotiate the gas company paying for the trees and any other damage to your land. You cannot build anything on the pipeline right of way nor plant trees. I have two pipelines running across my property that were laid before I bought the property. The gas company personnel are very courteous and are responsive any time I call them with a problem. I haven't checked, but I am sure that the land owner does maintain some rights after the pipeline is laid (this probably should be put in the contract). I can't think of any pro's to having a pipeline across your property.
$350 rod great rate. pro and con are best answered on location of land city or country. Land's general use. Does it change the use of land, etc. One pro is if you have well and own the mineral royalty you will need pipeline to get the gas to market. So answer to question has many answers with variables possibilities. If you are surface owner only you may want to fight it depending on market value and future use of land. If land out in the boonies and you never know it's there take the money and run, this is higher than I have seen paid--$250 was top I have seen paid. Make sure agreement is reviewed by attorney unless you are knowledgeable
J. Shaler,

This amounts to $15,400 per acre (if it is 60' wide) for property that you get to keep. Location, location, location determines whether this is a good deal or not.



Help me out here! I understand that a rod is 16.5 feet. If the pipeline company is willing to pay $300.00 or $500.00 per rod, does that mean they will pay that amount times the length of the right of way measured in 16.5 foot increments across one's property or are they going to convert the land used into acres and pay per acre? I have done some research on this but haven't come up with an answer. Maybe you can help me.

If my calculations are correct, a right of way that is 1/4 mile long converts to 1330 feet which comes to 80 increments of 16.5 feet. This amounts to $40,000.00 for a 1/4/ mile right of way easement. As you said,,,,not too bad.
Glenn Taylor,

Here is what I used:

43,560 feet = 1 acre

43,560 / 60 feet (width of pipeline) = 726 (726’ x 60’ = 43,560)

726 / 16.5 = 44

There are 44 rods (60’ wide) in an acre.

$300 X 44 = $ 13,200

$500 X 44 = $ 22,000
You are correct a 1/4 would be 80 rods (1320 feet) x (60 feet) @ $500 per rod the price would be $40,000.

I just said the price is ONE good thing.

You could probably come up with 40 reasons not to allow one.

It's a negotiation process. Two neighbors side by side may have completely different opinions on what is acceptable.
Oh, I agree that the money only sounds good. There will be "forever" restrictions on what the land owner can do on the ROW after the pipeline is laid. Thanks for the reply. I just wonder how to respond if they ever come back to lay another line in the existing ROW across my property.

I hope you had a Merry Christmas and have a happy new year.

$350 is a good rate. We've been getting $300 per rod in western Desoto Parish. Make sure the agreement only specifies one pipeline. If they lay another one they have to negotiate the rate and pay you again. Yes, pipelines are there "forever", but unlike other activities realted to drilling their impact on the overall landscape is minimal. They also provide great access into an out of land areas that you otherwise might not have access to and they are great for hunting. You pretty much maintain all rights associated with the property and except building of permanent structures and planting tress.

You can also put a clause in the agreement to have the company sale the land back to you for a $1 if it's ever abandoned.

Just my 2cents.

The land "stays" yours, so there is no need to have the company sell it back to you.
Good point parker, wasn't thinking in terms of pipeline agreement.

We just did a deal for a gas processing unit on our place. We actually sold the land and had a $1 dollar clause put in that agreement.
Thanks Geo,

That is something to keep in mind. I don't think I would want to own the land with a processing unit on it but would want to get it back if the equipment was ever removed.
Mr. J. Shaler: There are no pros to pipelines unless it is going to a well in which you participate.


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