Pipeline ROW agreements are showing up to owners in the Reeves and surrounding areas. Let's start a discussion about the area. A quick list of items to think about....
*What are you being offered initially and what are you negotiating as your end price per rod or foot?
*What is the initial width of the ROW and what width did you settle out to?
*Condemnation proceedings anyone?
*What do they want to run in your ROW? Oil lines, gas lines, salt water lines? More than one line?
*Any additional surface being requested?
Add your comments, thoughts.
A-3151 has not been approached so far.
I was in Pecos a couple of weeks ago (I grew up there) and signed a right-of-way agreement with Clayton Williams for $100 per rod. The right-of-way is for 50 feet width (I didn’t argue with them on this) and location to be determined later (I also signed a mineral lease with them at the same time). They paid initially for 1/2 mile of easement, about $16,000, and can get more later if they need it. They can run oil, gas and water lines.
Do you know where the pipeline is running, please?
I was told that pipeline transportation costs would be charged against royalty owners' distributions???
Doesn't seem right, does it?
Here's an article on Clayton Williams' new pipeline project in Reeves.
http://www.mywesttexas.com/business/oil/article_e1d59053-d9e5-5d56-9728-7f2c5b92482c.html
I'm curious whether it works the same way mineral leasing does when there are co-tenants in an undivided tract ... i.e., if they get an easement from one co-tenant, can they go ahead and run the pipeline without the other co-tenants' agreement?
Is there an indication of the route this pipeling will take?
I'm assuming it is all south of Pecos???
No, they have to have all signatures or they will be trespassing. The undivided interest owner can use the land, but he cannot assign that use to a third party. In a suit for trespass, triple damages apply.
Ray H. Joyson said:
Here's an article on Clayton Williams' new pipeline project in Reeves.
http://www.mywesttexas.com/business/oil/article_e1d59053-d9e5-5d56-...
I'm curious whether it works the same way mineral leasing does when there are co-tenants in an undivided tract ... i.e., if they get an easement from one co-tenant, can they go ahead and run the pipeline without the other co-tenants' agreement?
Thanks, Laura ... here's another question.
If your lease grants lessee the right to lay pipelines ... as most leases do ... but doesn't specify that you're to be compensated for it ... do they have to pay you for the ROW as they would someone who's not leased?
Thanks for the info, Ronald!
Would you mind sharing the terms of your lease also ... bonus, term, royalty ... location and number of acres ... and did you lease to Clayton Williams?
ronald kilgore said:
I was in Pecos a couple of weeks ago (I grew up there) and signed a right-of-way agreement with Clayton Williams for $100 per rod. The right-of-way is for 50 feet width (I didn't argue with them on this) and location to be determined later (I also signed a mineral lease with them at the same time). They paid initially for 1/2 mile of easement, about $16,000, and can get more later if they need it. They can run oil, gas and water lines.
Our land is Block 55-7, Section 26. That is southwest of Pecos, about 5 miles west of Hwy 17 and about half way between Balmorhea and Toyah. When I was a kid driving a tractor on the farm I could see the sun reflecting off the water tower in town (20 miles?). I will give you the terms of the lease in about two weeks.
Ray H. Joyson said:
Thanks for the info, Ronald!
Would you mind sharing the terms of your lease also ... bonus, term, royalty ... location and number of acres ... and did you lease to Clayton Williams?
ronald kilgore said:
I was in Pecos a couple of weeks ago (I grew up there) and signed a right-of-way agreement with Clayton Williams for $100 per rod. The right-of-way is for 50 feet width (I didn't argue with them on this) and location to be determined later (I also signed a mineral lease with them at the same time). They paid initially for 1/2 mile of easement, about $16,000, and can get more later if they need it. They can run oil, gas and water lines.
A great place to go for information is the Texas A&M Real Estate Center. Available on-line are numerous articles dealing with all the above stated issues. Another resource for information is the University Lands people in Midland. Be interested to see what anyone has to add to this.
Ray, if you are the surface owner, then you should negotiate a surface lease agreement along with your oil and gas lease. This way, you maintain control over the use of your land. TLMA has great Oil and Gas Lease Forms and Surface Use Agreement forms available to its members. I am no expert on this, but can just tell you what I do know. Most companies work with the landowner, paying for damages, easements, use of water, location of roads, etc., but by law, they do not have to.
I know of one family who owned 1/2 the minerals and did not make a lease and the company came in and commenced putting in roads, etc and drilling on their land. They have absolutely no recourse, just have to see if the well comes in and wait for it to pay out to start collecting their interest. So be very careful in the beginning and if you do not own 100% of your minerals, try to get with the other interest owners before they sign anything, so that you can all work together. And always see your attorney first.
Ray H. Joyson said:
Thanks, Laura ... here's another question.
If your lease grants lessee the right to lay pipelines ... as most leases do ... but doesn't specify that you're to be compensated for it ... do they have to pay you for the ROW as they would someone who's not leased?
Thanks again, Laura.
Earthworks ... an environmental advocacy group ... has a "Texas Sample Oil and Gas Lease and Surface Use Agreement" that people can download and use for free ... and it's very favorable to the lessor.
http://earthworksaction.org/publications.cfm?pubID=506
Does anyone know whether this is the same lease that the TLMA gives to its members?
What are the rights of a surface owner on land that has existing lease HBP? A company has purchased the lease and is coming in to rework the lease. As a surface owner only, what do I have to accommodate to and what can I negotiate for? If I can get a Surface Use Agreement with them what should I watch out for?
Thanks, Buzz.
Is there a map that shows the proposed route?
J. -- I haven't seen one as yet.
Later -- Buzz
Signed ROW and pipeline agreement last month with Devon for 40 feet on eastern boundary of our property (S/2 of the N/2 of Section 31, Block 4, H & G N RR Company Survey, Reeves County) for two pipleines at $85/rod. Also, negotiating with Petrohawk on ROW and pipleine agreement from padsite on same property with plat showing line going north.
Keep us posted!
Paul Eggers said:
Signed ROW and pipeline agreement last month with Devon for 40 feet on eastern boundary of our property (S/2 of the N/2 of Section 31, Block 4, H & G N RR Company Survey, Reeves County) for two pipleines at $85/rod. Also, negotiating with Petrohawk on ROW and pipleine agreement from padsite on same property with plat showing line going north.
ConocoPhillips (Paul Lawdermilk) is offering us (my sister ans I) $50 a rod for a pipeline easement over our tract Section 46, Block 45, an undivided interest of 1/50 x 5,395 feet/16.5 feet per rod or a total of $327. However, we are being offered a total of $500 for the easement as a "sweetener". I talked with him on the phone and mentioned thoughts such as the time length of the easement (could be 75-100 years) and asked for some consideration of this - perhaps a new "bonus" after a number of years. He agreed to consider this and get back to me. That was meanwhile two weeks ago, and I have no feedback since then. He has my email address and could have contacted me, but has not.
I don't know if I should be irritated/mad/unsettled, or simply wait and see.