Pipeline easement negotiating

[shibaura_4043]

I wasn't sure what forum to post in so sorry if this one is incorrect.... Oneok Sterling III Pipeline is buying up land in my area for a 16" NGL pipeline. They have offered me 5k for .81acres of land or 42.82 Rods @ 100.00 plus damages. I told him I'd get back with him. My neighbor settled at 7k for the same acreage including damages. I would like to see closer to 9.5-10k... my justification is smaller tracts of land <3acres typically go for close to 10k per acre add in damages of 1500.00 or so and your right around 10k . Does this sound reasonable to you guys? I will now have 100ft of easement running parallel to one another which really hurts resale value too. Is there anything I should include in the contract other than the easement dedicated to one pipeline only and no surface obstructions or structures without renegotiating the contract?

 

[beersngars]

Where are you located?

 

[aczlan]

First and foremost, I would find a good land lawyer (not just any lawyer, specifically someone who deals in land contracts, easements, etc) and have them look over the contract.
Couple of things that I have heard mentioned:

• Is there a different construction easement vs permanent easement? I have heard of a (for example) 200' wide 8 month construction easement and a 75' permanent easement.
• What are they going to do with topsoil? One thing that has been talked about on here is requiring double ditching (ie: take the topsoil off and put it in one pile, then the other dirt in another pile). That keeps you from ending up with a bunch of clay on top and the topsoil down bottom.
• What restrictions are there on you putting something over the easment? ie: waterline, cable tv, power, driveway (paved vs gravel?), etc
• What is listed in there about gates? Another thing that has come up on here is having a gate at each end (with your lock and their lock on it) to keep unauthorized people from driving up and down the easement
• How about advance notification? Not uncommon to have a required 24-48hrs notification for them to enter their easement on your property except in emergencies.

Aaron Z

 

[2LaneCruzer]

Here's some things to consider:
1. They will bring in heavy equipment, dig a big hole, keep the area torn up for an unknown amount of time, probably put the topsoil back in first; leave a ditch that will subside in a year or two; will not grow grass without constant watering, etc.

2. It's entirely possible they could come in later, replace it with a larger line or different composition, which means that you will have to go through it all over again, unless you specify otherwise.

3. If it were me, I would make the easement specific to one entity, and one entity only, so that they cant sell, lend, lease or otherwise transfer their rights to someone else. I would specify that the easement is a one time TEMPORARY easement, for the purpose of installing a pipeline and normal maintenance.

4. I would requre that anything other than normal maintenance will require a new lease. I would make sure that the surface rights, mineral rights, etc. remain with me, and they are responsible for any damage to your property resulting from the line, it's maintenance, etc.

5. Of course, I would make it clear that I still retain the complete and absolute surface rights, to use, lease or sell as I saw fit, as long as it didn't hinder the pipeline.

6. I would probably hire a lawyer, discuss these things, make sure they are strictly liable for all damages, and to make sure that there are no safety issues or problems in the future, like indicated above;, i.e., topsoil, subsidence, re-entry, installing new lines, transfer of easement rights; use of easement for other purposes, etc.

You might also consider how you want them to enter and exit your property; fences, etc.

Good luck.

 

[Combustix]

Just read a story in the Seattle times about a ranch in Texas that held out on an easement from keystone. They condemned her ranch and taking her land. Crawford was the name in the article. She's fighting it in the courts.

 

[dodge man]

They will not accept the easement unless they can sell the pipeline. This only makes sense since the companies buy and sell all the time. If they sell, they can't expect the buyer to go around and get easements all over again.

 

[2LaneCruzer]

They will not accept the easement unless they can sell the pipeline. This only makes sense since the companies buy and sell all the time. If they sell, they can't expect the buyer to go around and get easements all over again.

Fair enough; and I know from experience what you say is true. It's a simple matter to add a clause that restricts the easement to owner of the pipeline.

 

[lockhaven]

Just read a story in the Seattle times about a ranch in Texas that held out on an easement from keystone. They condemned her ranch and taking her land. Crawford was the name in the article. She's fighting it in the courts.

I think would vary from state to state, Pennsylvania gave the gas companies the right to condemn property only for certain pipelines. I do not know the particulars.

 

[Brant]

Is there anything I should include in the contract other than the easement dedicated to one pipeline only and no surface obstructions or structures without renegotiating the contract?

Get an oil and gas attorney or roll the dice and very probably suffer the consequences. Relying on this (or any) board for free legal advice is not a good idea.

 

[greasemonkeyok]

It would help to know what state you are in. As I have said before, right-of-ways are like herpes, they are forever and they are going to cause you pain periodically. Plus, do you know what NGL's are? Can you envision what will happen if a NGL line ruptures?

Second, follow ACZlan, 2LaneCruiser, and Brant's advice. If you are one of those people who thinks they are smarter than the Right-of-way agent, you deserve what you will get.