Gas Company wants to install pipeline under my land; Please help!

[greasemonkeyok]

Might want to have the right (in writing in the agreement, preferably written with a lawyer's assistance) to cross the pipeline with paved driveways should you sell frontage lots. Some easement forms (probably the one they have proposed) do not allow paved crossings.

Also, consider requiring the company to bury and maintain the line at a depth below four feet or more - that way you are not likely to disturb it if you lay a water line, etc. You may not think the "maintain" part is necessary, but it is not unheard of for lines to buck up out of the ground as pressure surges move the line.

 

[whistlepig]

There are all kinds of buried utilities in front of properties all across the country. Usually having utilities at the road is a positive. How is this necessarily any different? You are making assumptions and drawing conclusions that may not be supported by facts.

You can't build access over these right of ways. Its a 150 foot swath through your property that can not be built over or the access restricted to this right of way. And that's forever.

 

[dodge man]

You can't build access over these right of ways. Its a 150 foot swath through your property that can not be built over or the access restricted to this right of way. And that's forever.

That's not true, in most cases you can put a driveway over them. In many cases you can farm over them. You just can't do anything that stops them from getting to it, like a building. They also usually have the right to clear trees and brush also.

 

[whistlepig]

That's not true, in most cases you can put a driveway over them. In many cases you can farm over them. You just can't do anything that stops them from getting to it, like a building. They also usually have the right to clear trees and brush also.

If you do put a driveway over them and it has to be dug up for gas line maintenance who pays to replace this driveway?

 

[RoyJackson]

You can't build access over these right of ways. Its a 150 foot swath through your property that can not be built over or the access restricted to this right of way. And that's forever.

The permanent ROW for the 36" gasline they ran in my area was about 50' wide....not near 150'. But they did need another 40' per side during the construction. This isn't a permanent thing and you can use the property in any way after construction.
However, the line going through ITHINKICAN's property may well have other stipulations.
Access is part of the deal and there are some restrictions (buildings and such), but that's something ITHINKICAN needs to check prior to granting an easement. I'm pretty sure the farmer behind our property can farm the ROW, but I don't know if that's a fact.
Again, something ITHINKICAN needs to determine and see in writing prior to any negotiation or legal action.

BTW, ITHINKICAN...the money you get from the gasline company is taxable income...don't spend it all until you determine the tax liability.

 

[whistlepig]

It was 150' for our gas line. We could put a driveway over the easement but if it was ever dug up for gas line maintenance the cost of replacement would be ours. When we sold the place we had some folks wanting to build a restaurant look at the place. When they found out that the location of the gas line would be under their potential driveway it was an instant turn off. Their driveway could be dug up at any time for an undetermined length of time for gas line maintenance. It made our place extremely difficult to sell.

 

[greasemonkeyok]

Tax adviser can tell you whether it will be taxable as ordinary income, or simply reduce your basis in the property (if you call it damages).

 

[RoyJackson]

It was 150' for our gas line. We could put a driveway over the easement but if it was ever dug up for gas line maintenance the cost of replacement would be ours. When we sold the place we had some folks wanting to build a restaurant look at the place. When they found out that the location of the gas line would be under their potential driveway it was an instant turn off. Their driveway could be dug up at any time for an undetermined length of time for gas line maintenance. It made our place extremely difficult to sell.

I hope you were adequately compensated for this loss of income!!

If we hadn't already had a powerline ROW (inherited when we bought the place), I would have likely fought this gas line.
Supposedly, any loss of property value is tax deductable...but I would have wanted that money up front as part of the deal.

As I wrote initially, get your money out of this and don't let them lowball you! (BTW, I got just under $10K for 0.2 acres of wooded land...their initial offer was under $5K)

 

[whistlepig]

I hope you were adequately compensated for this loss of income!!

If we hadn't already had a powerline ROW (inherited when we bought the place), I would have likely fought this gas line.
Supposedly, any loss of property value is tax deductable...but I would have wanted that money up front as part of the deal.

As I wrote initially, get your money out of this and don't let them lowball you! (BTW, I got just under $10K for 0.2 acres of wooded land...their initial offer was under $5K)

We came out OK. The only thing that saved us was the independent appraiser and an extremely good lawyer. We lived 1/4 mile from I-75 that was being developed halfway between Dayton and Cincinnati and had seven acres there. They tried to low ball me to the point I wouldn't have even be able to replace my house out buildings much less the land. I finally told them to find me seven acres halfway between Dayton and Cincinnati that was 1/4 mile from I-75 and I would trade them even. That was the end of it. They paid me my asking price which was 12X the original offer.

 

[sweep]

If you don't want it, just say no. You are under no obligation to accommodate them.

Uuum no. If the prior owner signed away the gas rights/lease the op is SOL.

I just signed a lease for $4950 per acre and 19% royalty. In the lease the gas co can put a pump or underground lines on my property at any time but no closer than 500 feet from my house. If I sell the property the lease terms continue and I still get the royalty check and the new owner gets zip..and he could have something put on the property and there is nothing he can do about it.

Again the prior owner of the OP's land might have signed a gas lease deal that was similar.

 

[JakeBrake]

In my case a wholesale electric power company built a high voltage transmission line across the middle of my property. By wholesale I mean this is not the company that provides electicity to the local residents.

The power company did not contact me until after they had been granted a "Certificate of Convenience" from the state (Mississippi). The "Certificate of Convenience" places the full power of the law on the side of the power company. The power company
had "surveyed" the route with aerial maps and did not need to set foot on my property. They did pay a small amount for a detailed survey with stakes on the ground.

Everything the power company did was legal and above board. It was well-documented in writing and survey drawings were included. The power company representatives were true Southern gentlemen. It was almost a pleasure to deal with them even, though I didn't like what they were doing. Since in my working career I was a power equipment engineer, we had lots to talk about.

Eventually, they paid more for a 100' ROW and access road across my property than I had paid for the entire property many years previously. They built barb wire fences with 32' gates at the ROW on both sides of my property. They built another section of barb wire fence with a 32' gate at the access road. We had harvested the timber from the ROW a couple of years previously so this was not an issue.

This was all duly recorded by deed with survey drawings at the county courthouse.

Per the terms of the deed I still own the ROW and I can do anything on the ROW that will not interfere with the High voltage lines. Examples of property use would be grazing, haying, row crops, hunting as in building deer stands just off the ROW with field of fire
over the ROW.

Incidentally, the power company representatives said that power transmission lines were
zigzagged for lightning, storm, and terrorism protection.

 

[kude]

As mentioned above. get a ROW for your operations. If you don't have it writing they can be difficult or refuse later.

 

[whistlepig]

For quick cash a right-of-way is hard to beat. If you are never going to sell the land in your lifetime go for it. If you do try to sell the land the right-of-ways will devalue it. I moved as far out in the country as I could get. There are no right-of-ways here. No one here can tell me what I can or can not do with my land. And to me that's priceless.

 

[bruceha2000]

If I sell the property the lease terms continue and I still get the royalty check and the new owner gets zip..

I presume you calculated out the depreciation of your property (who would want that deal?) and decided the 'forever' cash was worth it.

 

[buckeyefarmer]

Incidentally, the power company representatives said that power transmission lines were
zigzagged for lightning, storm, and terrorism protection.

LOL, Good one.
Ever see power lines out west? straight as an arrow for miles and miles and miles....... And very few if any have been built since terrorism was even a threat.

My dad got a letter from a pipeline company wanting to survey for a line. I told him to ignore it, don't let them. The pipeline company has surveyed along the public roads, but not on his property (that I know of).

 

[aczlan]

If you do put a driveway over them and it has to be dug up for gas line maintenance who pays to replace this driveway?

That would be something you would make sure to put IN WRITING in the easement documentation.
Something like "the gas company is obligated to return the surface of the ground to the same state as it was in before they dug it up (including any paved driveways)" would take care of that issue.

Aaron Z

 

[sweep]

I presume you calculated out the depreciation of your property (who would want that deal?) and decided the 'forever' cash was worth it.

Not really to be honest. In our case it's a moot point. We lucked out. How our homes are located, barns, ponds, State park that Butts up to our proerty etc they cannot come across our land.

It just works out that the neighbor homes are placed where they cannot go within the 500 feet of homes and 300 feet of outbuildings. We have 13 acres but there are 2 large ponds etc which according to our lease they are not allowed to do anything with, go under or be near and we butt up directly against a State Park on nearly 2 sides which is off limits to the gas drilling/lines.


We had a Gas lease lawyer look at our lease ans she said it was the best once for the property owner she had seen-we signed up with an association.

Now if I had a lot of land and was out in the middle of no where I would be concerned.
Also if a new prospective buyer balked about the gas lease I would just sign it over to them.

 

[whistlepig]

That would be something you would make sure to put IN WRITING in the easement documentation.
Something like "the gas company is obligated to return the surface of the ground to the same state as it was in before they dug it up (including any paved driveways)" would take care of that issue.

Aaron Z

Not an option with my gas company. If it was an existing driveway when the gas line was installed they would replace it. Any driveway put in after the gas line was installed was the land owners obligation to replace.

 

[kude]

Claiming that the pipeline or electric line devalues your property will be shown false by their side. In our town, farm properties wth easements like these were bought by developers who paid the same as without ROWS. People bought lots next to power lines and don't care about nimby. A gas line is at least underground, an above ground facility is different.

 

[whistlepig]

A right-of-way is a right-of-way above ground or under. High tension towers have a 150' right-of-way also. Land with right-of-ways have restrictions. People will pay more for land that don't have restrictions. Less for land that does.