Payment for Pipeline Right of Way

Posted this earlier but apparently didn’t get into the system.

Appreciate any information on price, per rod or foot,that’s been paid in the last year for pipeline right of way in Washington County.

AMP and several others have been putting in lots of new lines on the west side of the county.

Thanks for anything you can share on that.

Dusty, Not sure how much this helps, but a friend of mine deals with a lot of landowners and he indicated a price range of $750 to $1500 a rod.

I’d heard numbers as low as $150/rod. I’m guessing the wide range could depend whether it’s for a big transmission line requiring a wide ROW or is just part of a gathering system crossing landowners in a unit.

Thanks for responding. I’d appreciate anyone sharing what they know on this.

My friend works for Bluebonnet Electric and has told me about a facility being built by Empire MAT. He thinks it is similar to what AMP is putting up off of Old Mill Creek Rd. They are about 4-5 miles apart. Would they put gas processing facilities that close together?

That’s the first I’d heard about the possibility of a second processing plant.

I’ll try to do a little research on it. Do you know anything specific on the location of that second plant?

My understanding was the gas committed to AMP’s new gathering system and plant is from wells operated by Geosouthern. If another company has gotten a bunch of gas committed from Wildhorse/Chesapeake or Enervest/Magnolia I guess how close together the two plants were wouldn’t matter. It would be a bunch of new capacity for one area, depending on the size of that second plant and whether what AMP is currently building on Old Mill Creek RD is that 200 MMCF/D plant talked about on their website but with no location given.

It is located on the east side of FM 2502 about a mile north of Wesley, or about 2 miles south of the intersection of 2502 and 389. My source works for Bluebonnet Electric and he said they set up a fairly large electrical connection at the site. He said everyone is pretty tight lipped about what is going on. Only clue is signage at 2502; Empire MAT.

Michael_Koehn - could you be more specific where you think the second plant is going? Don’t mean to be picky, but a mile north of Wesley is quite a ways away from 2 miles south of the intersection of 2502 and 389. I’d appreciate being able to pin down this possible location more accurately. Thanks for any help with this!

No problem on clarifying, I have lived in the area since 1974, but I don’t pay much attention to distances. Let me put it this way, the entrance is closer to fm 332/2502 than the 389/2502 intersection. It is on the east side of 2502 about 1-200 yards southeast of the new AT&T tower on the western side of 2502. It is next to land that adjoins the Donald Draehn family land. I got this from a Bluebonnet Elec ee’ Who said that set quite bit capability at that site. He was told by the construction crew that a facility similar to the one on Old Mill Creek Rd was going there. Hope that helps. They took the company sign down this week, but there still was a “pipeline construction sign” by the road.

Please explain what “rod” is. A friend of mine received a survey request for pipeline right away and she was told $250 an acre? Am I not understanding this correctly?

A rod 16.5 feet. The length of a pipeline is generally described in rods - so 100 rods equals 1650 feet. The price for a pipeline varies by the diameter of the line - 8 inches vs 24 inches. The acres would be determined by the length of pipeline X width of the ROW. The width should be narrower for an 8 inch line than for a 24 inch line. You need to read the documentation carefully to determine how much is being offered. Take the total funds and divide by number of rods to see the per rod price. This assumes you own 100% of the surface. Prices vary by county and location, as well as by diameter.

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Thank you for the information. Now it makes a lot more sense.

I’ve heard some companies building new lines in Washington County have paid $250 a rod recently. I wonder if that might be what your friend was told instead of $250 an acre. In addition to the things Tennisdaze explained I think the price paid for right of way can also depend on whether the tract it’s crossing is under lease and part of the unit the line will serve or is owned by someone whose land isn’t under lease. If you are in the unit and your lease doesn’t say otherwise the lease may only require paying damages not a separate amount per rod for the ROW.

On your question about the pipeline company that will be connecting that particular well, it may depend whether Verdun has a certain company they’ve committed their gas to or which company already has a gathering system nearby that can be extended there. If you go to Texas Railroad Commission’s website they have a map system were you can see the existing pipelines in that area. Surveying would be done before construction starts.