Easement contract essentials

General Mineral Rights Discussion
1

New to this forum, but an avid reader and researcher whenever it comes down to locating material that’s important. A relative with an easement proposal asked my opinion about valuation of a permanent 50’ wide easement at 160 rods. Like any proposal from a company the terms are vague and in favor of the business.

We experienced a mini oil boom followed by disposal well earthquakes a few years ago. And I have experienced some of the mishaps from ruptured saltwater lines and what affects it has. But when the idea of NGL running through the pipelines I consider the greater potential it could have. The pipeline is at its strongest before it’s welded together and lowered into the ground, so I want to cover the bases before putting ink to paper and appreciate any feedback from the simplest to the most complex. The monetary portion is just a number, but how a contract is written determines the future, plain and simple.

Here are some of the essentials that I have considered placing in the contract (And no I am not an attorney): Negotiation costs, payment for temporary workspace on top of permanent easement amount, damages for repairing fencing, loss of revenue during construction/inspections, soil compaction, erosion, interference of livestock/loss of livestock, & drainage, payments - lump sum/annual installments, pipeline depth and must be maintained at 36" depth, additional lines are subject to separate contract(s), if easement is ever abandoned the pipeline must be removed by pipeline company at their expense and returned to its natural condition free of contamination, use of enjoyment, rights of ingress and egress, can’t transfer/sell to third parties, pipeline route, grantee cannot mortgage or collateralize its rights under this agreement, soil separation, waivers, governing law, counterparts, surveys will be performed at pipeline company expenses after line has been buried, warranty, and breakdown of monetary portion done on a square feet basis.

Did I miss any important topics? I’m actually considering asking about the blast radius estimates and including a clause along with everything else to cover any potential disasters in years to come. Thanks again for any feedback.

2

Also not an attorney, but you want the double ditch method which means that they separate the top soil from the underlying soil and replace the underlying soil first and put the topsoil back on top, so the growing potential remains the same. Otherwise, you may have an ugly line of bad soil many feet wide going through your property. Get a good attorney familiar with easements to write the contract. That pipeline will possibly be there for decades.

3

The tract of land seems to be a magnet for pipeline proposals. Just completed a deal with OneOK involving increased space for an enclosure for existing valving. Bluestem is running this new line, but we experienced a line blowout a decade ago from a OneOK line to the North of us which is the reasoning for including the depth and must maintain at 36". Of course the blast radius estimates were much less than actual experienced. It’s a topic that most don’t even consider when writing up conditions in a proposal. But I will definitely include your suggestion. Farmers hate plugged drills and bare spots in once productive ground. Thanks.