Replies to This Discussion

Permalink Reply by KIM CASWELL on December 22, 2014 at 6:17

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

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Permalink Reply by Al Funderburk on January 21, 2015 at 3:00

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

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Permalink Reply by randy dawson on January 21, 2015 at 5:37

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. 

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Permalink Reply by J B Nabors on February 3, 2015 at 14:37

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.

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Permalink Reply by Lerret on January 21, 2015 at 6:20

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.

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Permalink Reply by Two Dogs, Pirate on January 21, 2015 at 13:24

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.

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Permalink Reply by stroud on January 21, 2015 at 14:23

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

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Permalink Reply by Al Funderburk on January 23, 2015 at 12:55

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).

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Permalink Reply by P.G. on January 23, 2015 at 13:39

How are property taxes determined/valued on easements?

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Permalink Reply by Al Funderburk on January 23, 2015 at 14:47

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.

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Permalink Reply by Al Funderburk on January 23, 2015 at 14:49

Easements are taxed the same as the contiguous land.

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Permalink Reply by P.G. on January 23, 2015 at 18:23

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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