Just recently we were told a study was being conducted to lay a pipeline thru our property. I know the going rate is $25 a foot - the question I have is once the pipeline is layed and in use is there any additionl money value of the pipeline for our family or is just a one time $25 dollar a foot? Chesapeake has our lease and drilling is finally begining around our area - new roads - drilling pads, yes!!

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If you are in Texas, they technically do not have to pay you anything as long as their use of the surface is reasonable and non-negligent, unless of course, your oil and gas lease says otherwise.  I assume your oil and gas lease requires they pay you for surface damages?  Does it set out the amount owed for a pipeline?  The $25 a foot is negotiable, but you are right that in Texas, that is a standard rate, but again, it is negotiable. Usually in exchange for payment, the company will get you to sign a release of future claims for monetary damages relating to the pipeline, but you need to make sure not to release any claims that are the result of negligence or gross negligence.  You also need to make sure the release relates solely to the area of the pipeline and nothing else.  I recommend you get an oil and gas lawyer to help you negotiate the release. 

We are in South Texas, Dimmit County - I believe they are wanting to tie production from future wells to a large pipeline that was layed just east of us last year.

Thanks for the input - as things gear up I believe you are right about getting a oil and gas lawyer!

$25/foot is standard rate, in La. also.  That being $15/foot for pipeline and $10/foot for damages.  When you receive your 1099-MISC, it will be for the entire amount.  Only pay taxes on the $15/foot as payment for damages is not taxable.  It is a one time payment deal.  After the pipeline is laid, they will have a right-of-way of the pipeline path of probably 50' width.  If you are dealing with CGG Veritas, they are straight up and you won't have any problems.
Thanks so much for your valuable in-put - I am sure as questions come up I will be asking more! Thanks again for your help!
Is that a square foot or  lenier foot? because if its not by the square foot that would'nt even pay for the timber on my place.

I know this is an older thread but just wanted to chime in.  In Red River parish it's closer to $40-50 a linear foot or in more standard terms, $700 + a rod.  The pipeline companies initial offers have been around that $450 but we have been able to double it fairly easily.

In my case, I was able to get the pipeline company to come off of their original offer by about 20%.  This was 20% higher than my cousin, with adjacent land, was able to get a month earlier.  I was not willing to push for more, however, because the company was laying the pipeline along my property line.  I figured that if I got too greedy, they could move over 15 feet and deal with the adjacent property owner.  So one question to ask is whether they are going right through the middle of your land (in which case you could probably get more), or are they laying the pipeline along your property line (in which case you risk them going away to your neighbor).


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