Can anyone give me an idea of the going rate that companies are paying for a right of way?

Views: 735

Reply to This

Replies to This Discussion

Getsmart,

Please give some additional details.  Specifically, how large a line, multiple lines, distance across the property and terrain in question?  As with all things, location and details are the deciding factor.  A 4” line crossing 2 rods of your back yard is valued differently than a 36” crossing 1 mile of timberland.

Hey Chad,

Thanks for any input that you can give me.

The right of way is 50' wide across timberland. Approximately 100 rods.

Get a board certified O&G attorney to write the ROW...there are several items you need to protect the property besides price.  Termination clauses for certain events, including keeping ROW insured at specified amounts by third party insurance carrier, specifically naming property owner as an addl insured or ROW terminates is a must.  Approval and fee for future transfers to another entity.  You dont want pipelines operated by insolvent entities.    Price for 1 line, only.  No addl lines unless laid in same ditch.  Do 1 line per ROW.  Access is up and down ROW only, etc.  

That’s a decent size ROW.  Definitely worth getting a reputable O@G attorney to review and advise.  I’ve seen $500 to $750/ rod (or more) + timber damages for similar sized ROW in Northeast Texas.  But location and details are paramount.  Is it 1 or multiple lines?  Do they need temporary work space?  Is it a gathering, midstream, or transmission line?  Do they have an optional route around you if you ask too much?  These and more questions will be addressed by any competent O@G attorney.

Chad,

I am an absentee landowner so I don't know the answer to all your questions. However, my understanding is that currently this is one line with possibly more added later. This is a transmission line; and they are limited on the routes. The information you have given me is very much appreciated. Sounds like I need to contact an attorney for more advise. Thanks again.

Chad's advise is spot on.  Don't get just any attorney, get an O&G attorney/firm.  It would be beneficial if the attorney has had prior dealings with this specific ROW/company.  That creates a base line for negotiations and it appears you have a strong negotiating position.  Good luck.

I've shared this before. Very helpful counsel by Eric C Camp at Decker Jones Attorneys entitled Pipeline Easement and Right-of-Way Agreements - A Landowner's List of Terms to Negotiate posted on Dec. 9, 2013. 

George,

Thanks for sharing this post. Lots of awesome information to consider; that I would have never thought of before.

Chad, Skip and George: I really appreciate all the advise. Each of your comments has been helpful; and I am thankful for your willingness to share your wealth of knowledge.

This website is definitely a blessing for someone that doesn't know much about this business.

God Bless! And I hope everyone stays virus free!

One major item that is overlooked is placement of the ROW.  I love it when they run down a property line.  It defines your property and helps with timber management.  You can negotiate where it is run.  I will never agree to a ROW that runs through my property unless it is following an existing road.  Remember, in the end you basically sold a piece of your property for your lifetime.  Make sure you are happy with the design.

RSS

© 2020   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service