I would like a chart that lists the price per rod for oil pipeline based on the diameter of the pipe and the feet of the property being designated. Any chart on the internet that can help me? Or can someone email me such a chart?
Bob, in what state is the land located?
If you are looking at rate for pipeline easement in Texas I suggest you look at the (University of Texas) UT Lands Rate and Damage Schedule available on the internet.
The land is located in Texas.
Looking at the UT Lands Rate and Damage Schedule on page 6-7, I don’t see where an oil pipeline is specifically addressed.
The schedule is for pipelines regardless of whether oil, gas or produced water is transported. The pricing distinction is whether the pipeline is related to a U.T, oil and gas lease or is for an unrelated third party pipeline. Rates vary depending on location even within a county. Here is a good article about the basics of negotiating a pipeline ROW. The specific terms of the agreement are important.
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Dear Mr. James,
There is no such chart. The reason is that there are way too many variables.
An example would be running a line through a proposed subdivision with no rights of condemnation and running a line where the company had eminent domain or contract (or implied) rights and the line was going through brush country in south Texas.
Two vastly different circumstances.
If someone has contacted you, ask them to get you a copy of the existing easement. See if a survey plat of the line “as laid” was attached. Find out if the existing line is still in service.
The use of the University School Lands schedule in my opinion is overrated. So overrated as to render it essentially useless. You can negotiate multiples of the rates in that schedule.
One thing that you will want to look for is the Initial Offer Letter. If a copy of the Texas Landowners Bill of Rights is attached, then the company is implying rights of condemnation.
The negotiation is generally a long process and you are wise to begin collecting information early in the game.
Best wishes,
Buddy Cotten
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Thanks for this information!
@Buddy- Good information!
I found an old post that you had mentioned $2.00 per inch when starting negotiations. That post was from 2013. What is the going rate (per inch) to start off with in today’s market? Is it still $200 and is this formula still a preferred method of getting a price to start negotiating?
Also- what are people seeing nowadays around Ward County? - Thanks!
Below is your post and a link to the post for reference.
What “going rate” means to me is that is what trade the weakest and less knowledgeable landowners signed for. Last 2 ROW that I negotiated were for $900 per rod and $675 per rod – on the same line in the same county. All line sections are fact specific and how hard you want to be.
I will try one more time to explain the $2.00 per inch thing. Here is the equation:
(Nominal diameter of pipe) x $2.00 = Asking price per foot
A 36 inch pipe would be priced out per foot, using the above formula:
(36) x $2.00 = $72.00 asking price per foot.
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