A person I know is negotiating with a pipeline company regarding a pipeline ROW (large transmission line).  They have asked the company to be paid a royalty on the product going through the line, even though they have no interest in any wells.  What is the probability of being successful in getting this?  If possible, what would be a reasonable percentage?

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I don't know about the royalties with no interest in the wells..but I do know the O&G attorney I talked to said that I could get $$$ from amount going thru that did not come from MY wells.  The pipeline was going to go across my land from my well.  The decision was that the line would only go far enough to connect to one already constructed.  So it is possible in some cases based on that information.  Guess it would be like a toll road pipeline.

I decided that altho it meant I didn't get money for a line across my land  that I didn't HAVE a pipe line across my land.  I think for heirs that will turn out to be a good thing possibly worth more to them then the money would have meant to me now.

A pipe line restricts the land owner in the use of his land in many ways.  Had there not already been a line nearby I might have had to make different decision. 

 

TG, I think the chances in regard to a large transmission gas pipeline is slim to none.  Large transmission gas pipelines have eminent domain or condemnation rights if required in such cases.

Thanks, that is what I thought. The company with their eminent domain power would use it before they would pay royalties.

I have heard of this in the past, but you need a sizable acreage position, and the willingness to fight for a long period of time in court.

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