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Permalink Reply by Two Dogs, Pirate on May 19, 2011 at 13:20

What do you mean by easements?

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Permalink Reply by Jeanette Cassell on May 19, 2011 at 14:31

pipeline right of ways. We own land in Karnes and DCP wants to lay a pipeline across our land. We are arguing over the price.

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Permalink Reply by adubu on May 20, 2011 at 0:27

jeanette cassell-- pipeline ROW are generally price per rod plus damage and varies with location and size of pipe, etc  there are several excellent threads of discussion with information already on this site and would suggest you read and review them. Use search on site to locate them. Add questions on those threads if you need addition info for some one with the knowledge will answer you. Happy reading and good luck working your deal with pipeline company

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Permalink Reply by Bacon on May 20, 2011 at 1:40

$500 a rod (16.5') in RR parish wasn't hard to get but we have got as much as $780 for a 42" after significant haggling.

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Permalink Reply by adubu on May 20, 2011 at 1:53

FYI---- in 2008 received $ 175 rod for 8" pipe 30' easement and $450 in 2010 for 24" pipe in East Texas

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Permalink Reply by Henry on May 20, 2011 at 6:16

In 2010, I got $500/rod for a 30' ROW and servitude for a 16" gathering line.  Plus $2500/acre for damages.

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Permalink Reply by adubu on May 20, 2011 at 14:43

henry-- I assume the $2500/acre is the land within the easement so 43,560 sq feet in acre then 30' easement takes ~ 88 rods to  covers one acre. If math correct you received extra $28.41 per rod for damages. Total $528.41 per rod easement and damages. EXTRA COMMENT I would want statement from pipeline company that as much as they can of  payment on 1099 would be for damages so no income taxes due for reimbrusement for damages. The remainer of payment can be use to reduce the bases value of land so tax deferred until  one day the land is  sold--- if ever sold by your family or not--- to calculate capital gains tax. So talk with your CPA you can legally defer any income tax due on money received for pipeline ROW. Same for Pad Site ROW, etc.  This is IMO only and not accounting advise for I am not a CPA or attorney--- so discuss this  with your  CPA. If we have a CPA member please comment

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Permalink Reply by Jack Blake on May 20, 2011 at 16:52

Jack Blake made three P/L ROW deals in 2009-10. 

Always make them give the first offer and they will ALWAYS pay more than that first offer.  They will go around you if you get outrageous with your counter offers, but STUDY ON GHS and cut a good deal.  There is tons of info. here for those who are willing to read, take notes and study. 

Also have a solid agreement with everything crystal clear.  An attorney does need to review and approve the agreement, but it's really up to the landowner to see he/she gets fair compensation and has all the good clauses.  This deal is worth a lot more to you that it is worth to the Attorney you hire to review the agreement. 

There are excellent negotiating tips here on GHS and also good lists of clauses to have in the agreement. STUDY STUDY STUDY and manage your HS blessings wisely!

Also ask questions of the P/L ROW Agent about the P/L infrastructure they are building.  You need all the info. possible to help you make the best deal(s).  You may be able to parlay the first deal into more deals for tie ins.  If you can do this and you already are paid for the first ROW deal you may be able to get stupid with what you demand for the second ROW deal.

POWERTOTHELANDOWNERSCRIEDJACKBLAKE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

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Permalink Reply by Henry on May 20, 2011 at 23:31

adubu,

 

To be  correct about my deal....  I gave the P/L company a long-term 30-foot ROW and servitude, for the pipeline to be on my land for $500/rod.  Then, in order to do construction, the pipeline asked for a temporary 75-foot wide ROW (which included the 30 feet).  The pipeline ran along the edge of my 40 acres.  So the amount I was paid for damages was for 99,000 sq feet (= 1320 feet X 75 feet), or 2.3 acres.  The company rounded it up to 2.5 acres, just to be sure they did not undercount me.  (I was one of the last people to get signed, and they were in a rush, so they rounded up on everything.)

 

The landman was well aware that everyone wants as much of the money put into the damages column as possible.  However, he was also under restrictions so he could not be too flagrant about it.  In his offer letter that he sent with the contract, he broke down the payments into what was for the servitude and what was damages.  The 1099 that came later only had one number on it -- the total, so the offer letter is what I needed to keep to break out the payment into two categories. 

 

I agree with Jack Blake.  Have an attorney review (and add to) the basic contract. 

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Permalink Reply by adubu on May 21, 2011 at 2:12

Henry---thanks for confirming my calculations--I just did not want the members to be misinformed thinking they should demand $2500 acre on their total acreage. You are correct the 1099 has only one total amount and the offer letter has the break down. You can write off and deduct the damage year of tax return filed then defer the other amount you owe tax by applying and reducing the tax bases value of land until one day land is sold. No reason to pay taxes until you have to.

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