Caddeaux Pipeline, LLC Application for Caddo/DeSoto Parish Intrastate Pipeline
I presume several of you received the above referenced notice of application for a proposed 36" Pipeline that would link up with other existing pipelines. Since I received this notice presumably the pipeline is projected to run under or near our property in DeSoto Parish. Years ago, during the first Haynesville Shale boom, I negotiated a contract for a similar pipeline under some property of ours in Bossier Parish. If I remember correctly, we were compensated based on how many "rods" the pipeline would extend under our property. Don't remember the dollar amounts, etc. but I wonder if this proposed Caddeaux pipeline is of a similar nature, meaning the property/mineral rights owners should expect to be compensated if the project is completed. Thanks in advance.
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Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on -
Pipeline rights-of-way are effective in perpetuity. For that reason, the question of compensation should be defined with the assistance of experienced O&G attorneys. It's not just the number of rods in length, it's the width of the easement for construction and then for continuing long term use. A long term easement should take into account the number of individual pipelines that the easement can accommodate. It is relatively common for a right-of -way to accommodate additional pipelines over time. The demand for additional Haynesville pipelines is currently high and land owners should get help in determining the value.
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Permalink Reply by Les on
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Thanks all for the input. I have not yet been contacted by Caddeaux, so maybe they have changed their route again and the pipeline won't impact me.
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Permalink Reply by Skip Peel - Mineral Consultant on
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Excerpt:
ORDINANCE NO. 6203 of 2022
BY THE CADDO PARISH COMMISSION:
AN ORDINANCE TO AUTHORIZE THE ADMINISTRATOR TO
EXECUTE AN EASEMENT AND RIGHT-OF-WAY
AGREEMENT WITH CADDEAUX GATHERING, LLC
REGARDING A PIPELINE THROUGH AND UNDER PARISH
PROPERTY LOCATED IN SECTION 7, TOWNSHIP 18 NORTH,
RANGE 15 WEST, CADDO PARISH, LOUISIANA, AND TO
OTHERWISE PROVIDE WITH RESPECT THERETO.
WHEREAS, the Parish of Caddo had received a request to grant to Caddeaux
Gathering, LLC a permanent easement and right-of-way (as depicted on Exhibit “A”) in Section 7,
Township 18 North, Range 15 West, Caddo Parish, Louisiana to install a pipeline for the
transportation of oil, natural gas, other gases, liquids, hydrocarbons or mixtures of the foregoing;
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Permalink Reply by Iris on
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Hmm, Arkansas Louisiana Gas tried to shanghai us by putting a pipeline across our property and some kind of fixture. They sent like $700 each to the owners. We sent them back and then attorney, John Frazier, negotiated and we were paid considerably more. However I thought they were purchasing but IRS said leasing for 99 years. So maybe they shanghai'd us anyway. Interesting that it is Trinity.
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Permalink Reply by Chad Ellis on
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Pipeline ROW agreements are complex. i strongly recommend the use of an attorney. I have both bought and granted ROW’s and I will not do so without my attorney’s review.
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