Replies to This Discussion

Permalink Reply by J B Nabors on June 15, 2011 at 8:52

First, a disclaimer:   I do not own property in Bossier, only in DeSoto and Sabine.   

 

However, you should negotiate any pipeline contract, much as you would a mineral lease.  

How much you ask should be a function of several variables, such as the following:  

 

*  What size pipe do they want to lay?  (Remember, an 8" line is NOT twice as big as a 4" line.   It is FOUR times as large.)  

 

*  How wide a Right-Of-Way do they want?  (the wider the ROW, the more you should require) ... If the pipeline company wants a 20-foot wide permanent right-of-way, you would certainly not expect to get the same amount of money as you would for a 500-foot wide right-of-way.

 

*  What is the current use of the land?   If you are using it for pasture, you can continue to do so after the pipeline is laid, but if you are growing timber, you will not be able to do that.

 

*  What alternatives does the pipeline company have to crossing your land?

 

*  Will the pipeline divide your property awkwardly, causing a decline in the market value of your property?

 

*  Will the pipeline create an unreasonable hazard for you and your family?  

 

I'm sure that there are many more questions to be considered, and perhaps more experienced posters can chime in? 

Permalink Reply by JHH on June 16, 2011 at 11:25

I've heard and read about landowners getting between $200 and $550 a rod... depending on a number of variables and the pipeline company's need.  Average price $400.  But those prices are a year or two old.... maybe it's different today.  Pipeline agreements can be very tricky and you must be specific about what's going in the ground (number of pipes/what's transported/leak detection devices) and size of easement.  Generally companies are agreeable to your needs.  there's a lot of money in energy transportation.