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Permalink Reply by Kat S8/T18/R15 on September 17, 2008 at 16:18

We are in Blanchard, Sec 8 / 18/ 15 and have been approached by Louisiana Midstream. I am assuming this is the same co. We have a copy of the contract and have not talked with them about specifics yet, but they are asking for a 50' easement. We are in the dark about all of this as well. Just when we sort of understand the leasing process, now here we go again. Any info is appreciated.

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Permalink Reply by Max on September 17, 2008 at 19:22

There are 80 rods across a forty. I know some people that held out on the right of ways for pipe lines and the companys filed on them down at the courthouse. They ended up settling out of court for twice what the neighbors got.

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Permalink Reply by Sunny Chaw on September 17, 2008 at 22:27

I have experience with this. Currently the trend is to count a pipeline as having a 60 year life. This equates to three timber harvests. This means apx $5000 an acre per harvest. This means three harvests. $15000 an acre means about $250 per rod. I received that after much back and forth with Kinder Morgan. This is what binding arbitration in other jurisdictions have established.

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Permalink Reply by Eat Beef on September 21, 2008 at 4:06

Did you get anything else from them other than the $250.00 per rod. Like improvement to your property. Did you ask for anything else?

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Permalink Reply by Bobi Carr ("parker") on September 21, 2008 at 6:01

Hi Sunny,

What area did you get this in.

I read another of your comments where it said that you wouldn't have faired as well without help from allexperts. I'm another long term fan of Jim McConnell's.

I think it is wonderful that we have so many people here sharing what we can to help each other.

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Permalink Reply by Eat Beef on September 21, 2008 at 6:18

Who is allexperts? Where do I read some of their helpfull information?

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Permalink Reply by Grice on September 21, 2008 at 6:43

http://www.allexperts.com/ep/3147-79756/Oil-Gas/James-H-McConnell.htm

That is Mr.McConnell's page. From there, you can navigate the site for other resources. After reading Mr.McConnell's comments (and I hope you do), you can search for unrelated topics. There is a vast of information being provided at that site.

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Permalink Reply by Eat Beef on September 21, 2008 at 9:30

I went to Mr. McConnell's page to see what he had to say about dealing with pipe line easements. After reading the contract that the man was going to sign, I was just sick. I was hoping Mr. McConnell would point out some of the draw backs with signing a contract like this, but when I read his answer I was really shocked. He said, "I would ask for $150. a rod and then said something cute about why they would need the extra footage for workspace.
I'm not sure what I was expecting from an expert, but I was hoping for much more. I'll go back and read some of his other items, in hopes that they will be enlighting.


You are here: Experts > Industry > Oil/Gas > Oil/Gas > Pipe Line Lease - Right of Way Agreement


Topic: Oil/Gas

--------------------------------------------------------------------------------

Expert: James H. McConnell, CPL
Date: 9/12/2008
Subject: Pipe Line Lease - Right of Way Agreement

Question
Is this agreement OK? The have offered to pay $100 per rod.

ONEOK Field Services
Right of Way Agreement
For and in consideration of Ten Dollars (10.00) in hand paid, the receipt and sufficiency of which is hereby acknowledged, the undersigned landowner ( hereinafter called GRANTOR, whether one or more), does hereby GRANT, BARGAIN, SELL andCONVEY to ONEOK FIELD SERVIECES COMPANY, L.L.C, its successors and assigns (hereinafter called the GRANTEE), A right-of-way and easement along a route, the location of which has been agreed to by the parties herein (the location of the pipeline as constructed, to evidence such agreed route,) to construct, maintain, operate, repair, replace, and removed pipeline facilities and markers, across under and upon the lands of GRANTOR in the County of Blaine State of Oklahoma, To wit

A strip of land 75' wide across during costruction and reverting back to 50' thereafter in SW/4 of Section 32 T14N-R13W. This easement is for one pipeline and is to buried at least forty-eight inches below ground.

During construction, Grantee shall have the right to use and additional work space of one hundre feet by one hundred fifty feet (100x150) along the easement area at the crossing of road, railroads, stream, terrances and uneven terain.

The GRANTEE shall have all of the rights and beefits necessary or conveinient for the full enjoyment of use of the rights herein granted, including but without limiting to the same to the free right of ingress and egress over and across said lands to and from said right-of-way and easement, the right to use all roads over and across said lands, and the right from time to time to cut all trees and undergrowth and remove other obstructions that may injure, endanger or interfere with the use of said pipeline. GRANTOR shall not place any obstruction within the right-of-way which could interfere with the normal opeation and maintenance of pipeline. The GRANTEE shall have the right to assign this grant in whole or in part.

TO HAVE AND TO HOLD unto the said GRANTEE, its successors and assigns, for so long as siad easement and right-of-way is used by GRANTEE or useful to GRANTEE, wotj omgress tp amd egress from said premises for the purpose of constructing, repairing, maintaining, replacing, and removing the property of the GRANTEE. However, GRANTEE shall have the right to abandon and terminate all or any part of the rights granted herein, by filing a release of the same in the contry records. Additioanlly, said easement and right-of-way shall terminate if and when GRANTEE ceases to maintain said easement and the right-of-way and the appurtenant facilites situated thereon, for a continuous perioad of one (1) year. The undersigned hereby bind themselves, their heirs, executors, administrators and assigns, to warrant and forever defend all anad singular said premises unto GRANTEE, its successors and assign, against every person whomsovever lawfully claiming or to claim the same of any part thereof.

The Grantee agrees to pay for any physic

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Permalink Reply by Bobi Carr ("parker") on September 22, 2008 at 4:57

Eat Beef,

I just read the comment you refer to and I don't get what you have a problem with. He told them to reduce the size of the pipe down to a 10' easement instead of the 50'. At $150 per rod that amounts to $40,857 per acre by my calculations. Over 2 1/2 times what we are being told here in our area. So where is the problem with his advice?

Here is the break down. 10' wide pipeline multiplied by 16' rod equals 160 feet. An acre is 43,560 feet. So for every 160 feet of easement he was recommending $150.00. I am sure that he took in the particulars of the area into account before he gave advice. The person gave their section, township and range in Oklahoma.

I do not profess to know anything about Oklahoma. But read the abundance of post by Mr. McConnell in allexperts. I'm sure that after you read them at length you will change your opinion. But you have to keep in mind that each set of facts apply to a different area of the country and different oil and gas fields are involved.

Here's a question for you to ponder.

If I pipeline easement in Shreveport/Bossier worth $275 per rod, is that same $275 a rod figure just as good running through John Goode's new development in Bossier? Is the $275 figure the same going through a farm in Red River Parish? Is an acre in downtown Shreveport worth the same amount of money as an acre in rural Red River Parish?

There are not always simple answers.

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Permalink Reply by Kat S8/T18/R15 on September 26, 2008 at 18:01

Sunny, When you leased, were they laying more than one pipeline and what easement width did they take?

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Permalink Reply by Eat Beef on September 21, 2008 at 4:10

When the pipe line company filed on them, they had to hire an attorney, and how long did it take before they were paid? And how much did the attorney charge...I wonder.

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Permalink Reply by Eat Beef on September 21, 2008 at 4:12

What size right a way are they buying? In this case "size matters"

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