Replies to This Discussion

Permalink Reply by Randy on November 2, 2008 at 16:15

I mean if a ROW company sent me a nasty letter saying if I didn't accept their offer they would expropriate I would put my guy on them like white on rice!

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Permalink Reply by W Sharp on November 2, 2008 at 16:21

I am not as bothered by the threat of expropration as by the fact that they can charge the legal costs of it to the landowner. These include costs of Clerk of Court and Sheriff, expenses for surveys, maps and plats and expert witness fees.

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Permalink Reply by Bobi Carr ("parker") on November 2, 2008 at 18:17

Bob,

Thanks for this information.

I believe ROW will be the next wave of the areas to be educated about Oil and Gas.

In my opinion your 4th point is the one that is missed by many. $125 - $250 per rod are the prices that have been quoted on here for the most part.

But there are so many other things that come into play on the value of land and thus the value of a ROW. The loss of productivity of timber in one such item.

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Permalink Reply by Bobi Carr ("parker") on November 2, 2008 at 18:34

KB,

I've read that many ROW companies prefer to value the property by a corridor appraisal method. While this can give a general value for property, it cannot take in all of the variables to each particular piece of property.

Location, location, location may be the 3 most important rules of valuation of property, but they are NOT THE ONLY RULES.

A vacant rural acre 1/10th of a mile from an Apartment complex is not worth the same thing. All of these variables need to be addressed when valuing the ROW.

Permalink Reply by W Sharp on November 3, 2008 at 1:43

Bob
As to your first paragraph, I am just quoting the letter I received by certified mail, from Baker Donelson Bearman Caldwell & Berrowitz, PC of New Orleans. I would think for a law firm to make threats without some basis in law would be unethical and subject to sanctions. There was much that happened during the negotiations, more than can be told here. The main Item that concerns me is that the law allows the gas co to charge you for taking your property if you later fail in court to show that it is worth more than you were offered. If we wanted the actual value of the property, it would have been up for sale at that price already.

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Permalink Reply by W Sharp on November 2, 2008 at 13:30

As in the O&G leases there are lots more than the payment to consider, the terms of the contract will likely be with you for the rest of your life. Some traps are, they try to make you responsible for policing the ROW and block you from even building a fence. limit you to how much weight you can cross the pipeline with and where. The list goes on and on, be careful what you sign.

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Permalink Reply by W Sharp on November 3, 2008 at 2:49

KB
You don't sound smug to me, as I agree with you competely, I didn't get the money that I did by rolling over at th first threat by some law firm in N.O. In fact, as it turned out they ended up filing suit against me even though I had signed the agreement already. By the time I finished fillings and admended filings they seemed happy to dismiss at their cost and with prejudice. My concern is for the L/O that is not willing to go into court and sees only a threating letter. As well as the sections of R.S. that give the co the right to the gas company to charge the landowner to take his land. As I said if landowners wanted only the true value of the land it would have already been up for sale.
§12. Tender of true value refused; costs

If a tender is made of the true value of the property to the owner thereof, before proceeding to a forced expropriation, the costs of the expropriation proceedings shall be paid by the owner.

Amended by Acts 1974, Ex.Sess. No. 11, §1, eff. Jan. 1, 1975.

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Permalink Reply by W Sharp on November 3, 2008 at 3:21

Sure, as its public record anyway, I also will upload the letter which seems to play a bit fast and loose with the law after seeing your case law post.

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Permalink Reply by Grice on November 3, 2008 at 6:38

To add to potential reevaluation of value; would it be proper for a landowner to have an independent estimate prepared, in the event of an agreement failing to come to term? if a landowner was to serve formal notification of the value for said land, possibly, the courts would establish that notification as being the true value. To further add credence, three independent assessments should serve as proper evaluation.

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Permalink Reply by W Sharp on November 3, 2008 at 6:12

Here is the letter and the subsequent suit that was filed. I have deleted the other names on the suit as even though this is public record, I prefer to do it that way. I did not bother scanning the attachments and orders, my scanner is not really set up for legal documents. I have had several ask me why I filed responses to suit Pro Se. I did first check with several attorneys and the answer was "We can fight, but in the end they will win" ...Well hell, I can lose the case all by myself, don't really need an atty to help me lose the case. Unfortunately they gave me all I asked for, as I had spent quite a bit of time to prepare for the hearing, and was quite prepared to argue the motion.

Attachments:

• Demand letter.zip, 2.7 MB

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Permalink Reply by W Sharp on November 3, 2008 at 6:19

The suit

Attachments:

• MEP suit.zip, 5 MB

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Permalink Reply by WayneandAnna on December 9, 2008 at 4:28

I'm also interested in this infomation. I've not been offered a contract, but our energy company has asked if I would be receptive to a compressor and production facility on our property.

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