America’s conversation place for mineral owners
Quick question for someone new to negotiating pipeline ROW's...
I've been offered $125 a rod per my 30% ownership at 80 rods for a 16" pipeline with a 75' easement (45' temporary and 30' permanent).
Curious if anyone in the vicinity has received ROW offers and for how much....there's a ton of activity in this area and want to make sure I'm getting a fair deal.
Thanks for the advice,
Deal with money first then Agreement(s). Pay no attention to UT Land Rates. 30% ownership is significant. Personally, if it was me I would hit them with at least 50K. Who is making the offer? I signed ROW Agreements in June for Block 56 T3 and am working more for same section today bc I didn't give them a blanket easement. Most important is to sign single use easements. Mark out any reference to pipelines, make sure its singular. Add this language to end of Agreement(s) in case you missed any reference to it : NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, GRANTOR IS GRANTED RIGHT TO LAY ONE (DESCRIPTION OF LINE) WITHIN RIGHT-OF-WAY. THIS AGREEMENT DOES NOT GRANT THE RIGHT TO LAY MORE THAN ONE PIPELINE
DO NOT WARRANT TITLE
If you don't understand any of that get an Attorney.
Buddy Cotton negotiated pipeline ROW terms along with agreement language for us.
We were pleased with his service and fee.
He is listed as a professional at this website.
Its OK to use my name.
we had surface and minerals in Reeves Co.
sorry that should read GRANTOR GRANTS GRANTEE RIGHT TO LAY ONE...OR SOMETHING SIMILAR TO THAT
Thanks for that insight Michael - I definitely thought that was a low number as well given that it's the "minimum amount' on UT Land Rates page. I've heard different opinions about UT Land Rates...notably that you should multiply that number by 150% to start negotiations but also others like yourself who say to completely disregard. I've been reading and studying oil and gas leasing books, but haven't found much useful information regarding ROW's.
Another question: Do you think it's a good idea to have a lawyer draft our own Easement Agreement that we use when we get offers - for the sake of not having to worry about any hidden or confusing language? We get a lot of offers, and that's our process with O/G leases.
The offer was made through Lonestar Land Services, LLC on behalf of Plains Pipeline, L.P. out of Houston.
That's a low offer for that size of line especially for Reeves County. I'd suggest at least doubling their offer. If said company says that price is too high, tell them to find another route then. I also agree with previous advice posted on only allowing one line - not multiple and requesting a temporary term. Regarding having your attorney draft a ROW Agreement, I've worked with plenty of landowners in Texas and New Mexico who provide their own agreements. Its fairly common and a smart practice in my opinion. Best of luck to you.
Thanks so much for your reply and advice SouthTex!
One thing I would suggest is to ask for Temporary term. Most temporart pipelines is for 10 years. I got 250.00 for mine. They offered 120.00 and that is from the Land Office and that is about 10 years old. Good luck.
Where in Reeves are you, I have surface rights 10 acres, power companies were interested about 5 years ago, I am close to a the border on one side.