Natural Gas Gathering Pipeline placed without a contract. Found out from the cattleman leasing our land

We currently have a gas well (#1) on our property with an access road and right of way for pipeline to that well that we have a contract. However, they have put an additional gas well (#2) on the property adjacent to us and then proceeded to place 30 rods of pipe through our property, way off from the #1 easment (at least 50 ft!). For some reason, this line is being fed to what appears to be OUR gas well (#1) instead of just being piped to the main line along the easement? We found out from the guy leasing our land for his cows!

After contacting our company rep./landman, he said that yes the ball was dropped and he would rectify the situation. Well, over a month later he calls and offers us $1000! Yes, you read correctly- One Thousand Dollars. After explaining that we had investigated local prices per rod at ~$300-$500 rod, he said the most his company paid is $100 rod which would still only be $3000.

We also explained that the property value is more than his allowable. We're not in the middle of nowhere! We sold the adjacent property for $8000/acre a year ago.

These prices don't even include the fact that they were trespassing (?) and put the pipeline there without contacting us!

Any advice and comments welcome. We are in Smith County- Noonday, Tx.

Sincerest Thanks,


You might send the Company a letter demanding that the pipeline be removed immediately. I have a hunch they will come back with a more reasonable ROW proposal pretty quickly. Absent something very unusual, they do not have the right to bring off lease gas across your property without permission.

Ed is so right.

Then you are in the driver's seat. You might be even able to negotiate a throughput charge. That would be sweet.