Replies to This Discussion

Permalink Reply by Randy on February 26, 2010 at 5:56

If you do this, take pictures for sure of the land before they go out, video as well would be nice. If there are any questions about the condition of the property before-hand then you will need that.

What's a fair counter-offer? I don't know that one, everyone has a price, decide what yours is. It sounds like the pipeline is on your neighbors property, so you won't get any money out of that. So you might as well make some off of construction access. From some rough figures, it looks like they are going to pay you somewhere near $70-75/rod for the access road. Which (in my opinion) is a fair deal, most times they will want to be closer to $45-50. Of course situations vary. Is there any other way for them to get access? If you cost too much, it may be easier for them to build their own road on your neighbors property. Is not having the inconvenience worth losing 5 grand to you?

R

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Permalink Reply by greenwoodshale on February 27, 2010 at 2:48

Thanks Randy for your reply and information on this. To answer your other access question , there is really no other easy way to access this construction area on my neighbors property due to his house and also a small narrow wooded area in which he has elected to not disturb his trees there. So the company is planning to bore under that area til it reaches our street out front and then cross the street and continue on wherever its goin . As far as the 5 grand , if u look at that from a per day stand point for up to 60 days , thats not very much for the usage of our property . We have several other people that we have talked with that have had pipelines cross their property and also some that work with the constuction of them. So we are gonna take in all this informaton and try to put it into our counter offer to them. Thanks agian Randy ....Anyone with any other Info or comments please add too, Thanks.

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Permalink Reply by amigo1 on February 27, 2010 at 7:40

My sister and I were approached with a pipeline going through our property. At first it was slow and then all of a sudden they were talking condensation or what I think is emminent domain. From all indications they can take the property and then what you get out of it is very low or this is what I am hearing. I do not live on the place and it is going to be next to an existing pipeline. We did sign and got $6,600/acre for signing plus any damages which they say amounted to $128 but gave my sister $609 which they were of the opinion she had more trees on hers; however they did not show a platt for this. We have a timber guy that we have put them in contact with and we are waiting to hear what that turns up. It appears that we get different answers. She has an agent working hers and I have a different one working mine; and they do not appear to be giving the same answers. This appears to be such a fast business that it can cause your head to spin. Where are you located. we are in the Tutt survey in Shelby county. I did see one of your replies from Randy and taking pictures sure sounds like a great idea -- I did not think of that. I was told that I could get the timber guy that we have in to cut the timber and my sister was told that she could not. We have seen several different versions of what we can and can't do--get it in writing. They are still working on an agreement for us, but we were told they would be doing the emminent domain paperwork and I guess we did not have time or energy to see it through and maybe not get anything so we did sign but they are still working on the items we wanted; however, we know that that might not be too good although they said most items were approved.

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Permalink Reply by Bacon on February 27, 2010 at 7:57

I know every situation is different and this sounds like a much smaller pipeline than a particular situation I am familiar with. Exco paid a L.O. $100K for 1/2 mile of access to a neighboring ROW. Like Randy said, what are their alternatives? If Exco didn't get the access, they were going to have to build a bridge. So I guess bridges are more than $100K

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Permalink Reply by Belmont Boy on February 27, 2010 at 20:14

I've just gone through a negotiation with one of the major Haynesville Shale players wanting to run a pipeline across my property. Prior experience with granting rights of way made me cautious and I demanded some amendments which would insure me and my heirs were protected down the road. Nothing out of the ordinary or ridiculous (my attorney had included the same in multiple prior contracts for other clients). I was the landman's best buddy until he got our amendments, and then all sorts of changes started taking place. When I stood firm I was told I could either accept what they were offering or they would re-route the line. They re-routed the line! I never questioned what they were paying. I just wanted to be sure the pipeline would be properly maintained long term. Given my experience, I would strongly suggest you have a strong agreement before you let them use your property. I'm wondering if others have encountered this same situation....If you don't accept the company's right of way agreement did they go around you?

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Permalink Reply by Missy on March 16, 2010 at 15:52

Belmont,
Could you suggest some of the things we should be concerned with long term? Do you mind saying how much per rod the offer was? Thanks

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Permalink Reply by Belmont Boy on March 17, 2010 at 5:11

Check the various pipeline-related discussions presented within this web site. They covered most of what I was concerned about. In my case, I wanted a specific construction term, rather than an open-ended period, which they did not want. I also felt the total easement was too large, based on what other land owners had worked out. I required an on-going indemnification clause, even if the company sold the pipeline, but the company absolutely refused to agree to this. They also would not accept a related indemnification and protection clause protecting me, although the language was standard in all such contracts I've seen. What finally broke down the negotiation was refusal of the company to pay for timber damage. The standard contract the company presented to landowners contained a specific clause stating the company would pay for all damage to crops, timber, etc., and then had a seperate clause for the per rod payment. As soon as I presented my contract terms the company refused to accept a damages clause, stating they would only pay a flat amount to cover the ROW and damages. I've since learned about a problem they were having with a landowner "down the line" and now believe they were merely seeking a way to move the ROW, but make it appear the move was due to my actions. The ROW had been surveyed, but they moved it a quarter mile and have by-passed several landowners who were initially involved. Word is they had to do so because the other landowner, at the last minute, refused to give them a ROW. All in all, the way the company's landman handled the matter left me with a very sour taste for that company, and I will be very hesitant to have any dealings with them in the future. I was dealing in good faith, but came away from the negotiations with the distinct feeling the company was not. The per rod offer to everyone I know about was $450. This was going to be a 50' ROW for a line of 6" - 8", but not larger than 24". Hope this helps.

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Permalink Reply by Love Horizontals on March 17, 2010 at 9:58

Depends on what type of line it is; what it is transporting and from where. If it is a gathering line that they want to cross unit lines with "foreign gas" (gas from another unit) then they have a problem. Talk to a good board certified o&g atty. I have saved a lot of my property from unnecessary pipelines and damage by using an atty. I didnt want the money; I didnt want to encumber the property with additional pipelines they didnt have the right to lay.

If none of the right of way is on you and they just want to use your property for construction, then what they are effectively asking is how much will you take to allow them to enter/use your property....instead of trespassing and causing damage to your property.

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Permalink Reply by Love Horizontals on March 17, 2010 at 10:10

If you decide to allow the pipeline company to use your property....never sign the pipeline company's agreement as it is designed to cover them, not you. Have your O&G attorney draft your own agreement. For the last 25+ years I always have them sign my agreement at my terms or I dont do it. It has always worked out well....particularly years later when they came back for a second line..........my agreement always say 1 line and 1 line only. I also make them stay on the right of way for construction and they can only enter the property via the right of way.......not my roads.

If they just want to use your property just for construction on a ROW on your neighbor, I am with you 5-10K isnt worth the inconvience of them using your property. An approach would be to price it so high that they wont take it or if they do you can live with it. Alternatively, "just say no" thank you.

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Permalink Reply by FXEF on March 17, 2010 at 10:56

Be very careful, I know of a case where the pipeline company paid to use a driveway and blocked it for long periods loading and unloading equipment. The pipeline run right beside and parallel with driveway.

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Permalink Reply by Love Horizontals on March 17, 2010 at 11:52

Excellent point. If you decide to go forward, your attorney will write a time limitation to the pipeline company's use of your property. Holdover is often 200% of the original rate....but you could make it whatever you want to help assure they leave on time.

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Permalink Reply by greenwoodshale on March 18, 2010 at 12:03

Thanks to all those who offered there input on our situation here. What has taken place is basically NOTHING in our favor . Which is really the best thing in our situation considering that we didnt really want any of this to take place involving our property anyway. "Horizontals" put it exactly how it is , with there offer being too low for us and ours being too high for them. So the construction has begun with a barrier fence on the property line and there only access is from another street over which is about a mile and a half travel down there proposed pipeline up to our property. This is really how we would have rather it been , so we dont have to deal with any of the constuction phase and equipment on our property damaging it and also to our drive. Thanks again to everyone .

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