Going rate for 3o inch pipelines

Hello. My brother and I own two tracts of land in Reeves, one that has a producing well on it with Anadarko (API 389 35222) and another smaller one in the same block that is in the same pool but doesn't have a well on it (yet). We have been contacted by a company that wants to build a pipeline across the smaller one (NE/4 lot 8 of 10/610 1/2 H&GN) and so wants easement rights.

The pipe will be a 30" pipe, which seems quite large.

Anyone know the going rate for that? Approximately? below is the layout of the pipe they will propose, the yellow bit is the temporary easement. This is a 10 acre tract so a sizeable amount of land will be taken up by this. (Red Bluff Express Pipelines) . (And no we aren't selling the land or the mineral rights, not ever!)

Any approximates are appreciated. I expect we will lawyer up but I am lucky o have some very experienced landmen in the family as well.

Hey, Karla -

Try using the University Land Board's Rate & Damage Schedule. Any company would be hard pressed to argue with it.

Go to: http://www.utlands.utsystem.edu/

In the center column you will find a link to their downloadable pdf.

Hope this helps -

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas


Be careful if you have an Anadarko operated well and the pipeline is Anadarko owned or owned by one of its midstream assets (Delaware Basin Joint Venture LLC.) If you hardball them on the easement they’ve been known to smirk and pay it and then go tit-for-tat and get their money back by taking more than 50% of your gas royalty in their gas marketing deductions. Most of our other operators deduct around 5%. It helps to have unequivocal “no cost gas” clauses and not all of our leases have them.

Just biding time for my turn at tit-for-tat…

I don't think the pipeline is Anadarko owned, the company is called Red Bluff Express that wants to build it. Anadarko are already taking 50% of the money from our gas anyhow, sometimes more. I don't think I can change that in our lease...can I? The majority of the royalties we are getting are from oil (no deductions there), the gas seems to be a byproduct.

(It sure is exciting learning all this stuff. )

Thanks, Charles, I actually found that from another of your posts previously.