Replies to This Discussion

Permalink Reply by stroud on November 14, 2008 at 18:55

a 2" plastic line must be a salt water desposal line........ how productive is the well will tell you how much they will pay........maybe $100 rod, with only 1 line per easement, with a named year end of easement date................$400 per rod, may get more if very lucky, for a 12" and up gas line is not uncommon

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landownerPermalink Reply by Paw on November 15, 2008 at 3:11

I would agree it is low. I know about pipelines (20' easement, single pipeline, some sites with 12 - 24" pipes) in Ft. Worth in suburban areas (150 -180 acre parcels of mostly open land) went for $45.00 per running foot ($720 per rod), valve sites went for $90.00 per running foot for a 75'X75' site ($1,440 per rod), and all was on a 25 year easement agreement with same prices or higher (based on some other factors) for the renewal for the next 25 years. Part of the issue was desperation. Gas companies seem to have expended cash on buying leases without having the means to get the gas to market to replenish their outgoing cash. The deal was done when the pipeline company was getting pretty antsy. Just before they condemn your property for the gas line will be the best time to get the best price, but I'd say if you could get $25 - $30 per running foot in a rural area, I'd would probably sign it. I might even sign for less if it meant getting MY gas to market sooner. And finally after telling you all this, I'd also have to say the market price will be local. It may go up if more people negotiate better terms. You might try to find out what others have signed for.

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landownerPermalink Reply by Bobi Carr ("parker") on November 15, 2008 at 11:01

Stoud,

$400 per rod and up for 12" gas line is not uncommon.

Is this price also good for a flowline or just price for interstate pipeline?

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on November 15, 2008 at 11:38

Flowlines most of the time go for much less.

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landownerPermalink Reply by Bobi Carr ("parker") on November 15, 2008 at 16:10

Two Dogs,

What width do they usually need for a flowline?

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on November 16, 2008 at 6:23

About 10 feet with 5 or 10 more for tempoary construction.

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landownerPermalink Reply by Bobi Carr ("parker") on November 16, 2008 at 8:01

Two Dogs,

So if they are asking for 50' plus an additional 50' of work space, they are expecting a heck of a lot of flow?

Or do they want a pipeline easement that they are calling a flowline?

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on November 16, 2008 at 9:00

50' would be a tranmission line. I take a flowline to be a feeder line for a gathering system, I may be wrong. The 2" line mentioned at the top of the post is a gathering line for a marginal well or it would be bigger. Anything to do with the shale wells would be much larger. I hate buying pipeline ROW especially from small land owners that are not in the unit. You don't have much to offer and they get no royalty from the well. It is a hard sell and I would be the same way if it were my land. The only ROW that I do is with gathering lines where we have bought leases. If times get tough in the oil patch I may have to do ROW. Hope that doesn't happen and I am generally the last to get the axe because I mainly work for wildcatters and not the big boys.

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Oil & Gas ProPermalink Reply by The_Baron on November 17, 2008 at 5:09

Hope your right. I had to do a ROW for a small gathering system last year. We had to go about 3000' outside our unit to get to the nearest sales line. It was a nightmare. the wells were marginal at best, so my budget was low.

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landownerPermalink Reply by Bobi Carr ("parker") on November 17, 2008 at 5:17

Baron,

What did you have to pay for the ROW (with a low budget)?

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on November 17, 2008 at 5:20

Can you believe the amounts that have been suggested to the poster? This is for a 10 ft ROW with one 2 inch gathering line.

Oil & Gas ProPermalink Reply by The_Baron on November 17, 2008 at 5:26

We paid about $40 a rod, I got a low price because we had to go an extra 700 feet to stay along the property's perimeter.

But we also had to build about 1000' of fenceline and upgrade a dirt road, so the landowner had more benifets than just cash. I don't know what these improvements cost.

I also say about because we calculated the payment and rounded up to a cleaner number.

There was no timber, just cows.

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