Tiger Pipeline Rates
Any new info on the going negotiated rates for the Tiger pipeline? I saw where they're initial offer is $7125 an acre for permanent ROW (60') and $1425 per acre for the temporary workspace (65'). No mention of rods. Thanks.
Views: 325
Replies to This Discussion
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Permalink Reply by Buddy on
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Bacon: Aren't they wanting a 60' permanent? If so, that is less than $100 a rod and is really, really cheap. Doubt they get many takers at that rate.
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Permalink Reply by stroud on
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as a landowner i have dealt with a lot of pipe lines this last year.........every pipe line operator would like to pay as little as possible, so it becomes a game........but to me it seems these tiger people dont think it is necessary to play the game, they will simple tell the landowner what they will paid and where the pipe line will be......for a large line they know they will have to pay at least $468 per rod for a 30' row...........that works out $1 per sq.ft......always, always, always a single line....they will be back so dont give them a free one..however please be nice to petrohawk, chesapeke,encana etc. they have to have pipe lines to market our gas to paid royalty
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Permalink Reply by Bacon on
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In the end, they'd still have to pay (or get close to) fair market. It would seem that there are a lot of examples of rates that far exceed their first offer.
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Permalink Reply by Randy on -
Fair market as determined by an appraisal can be far different then perceived value though. In many cases, it's simply easier to pay more and avoid costly, time consuming condemnation cases.
On that same note, you can factor in your compensation demand, how much it would cost them to litigate and then discount that by 20% or so. Just remember they get much better bulk rates on legal services than the average Joe.
But they have to inform you of a final offer before they initiate condemnation proceedings I believe.
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And fair market for the land and fair market as defined by what you've gotten from other pipelines can be worlds apart.
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Permalink Reply by Bacon on
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I was under the impression that, in deciding FMV, the going rate for existing pipelines was a major consideration for the court if it got that far.
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The big question is fair market value of what. Farm land at say $2,000 an acre or say if you have sold a 60 foot right of way for $500 a rod in the past - that is $22,000 per acre. They are going to try to say farm land prices, you are going to say heck no, I got $500 a rod from Joe Blow Pipeline INc last year and I want that again.
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Permalink Reply by Bacon on
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Yes, exactly. and it's my understanding that the judge would say something like.
"Ok, folks, how much did a similar pipeline pay for ROW?"
" $500 a rod your honor"
"Then $500 a rod it is! bam bam, next!"
Obviously a condensed version :)
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