Pipeline easement rates in Reeves

Oryx has asked too put a pipe line on my property…I own 20 acres in Reeves county, it is located at the E1/2 of the NE1/4 of the NE1/4 Section 14 ,block 7, H&GN RY.CO survey Reeves county Texas…they told me that it is a 4 " line…they said they wanted too pay me 252.00. Which is 60.00 a rod…I figure this is 4 .2 rods. They previously asked too put a line through my property and it was a total of 106 rods…and Outrigger also put a line through and I was paid 100.00 a rod…by both companies. . how long is a rod? I seriously think the are trying too take advantage of me…I though it went by the size of pipe. My 20 acres is right in front of the refinery .I posted in the Section "what is the going rate of easement ect…If you wanted to look there, thank you for any help you can give me…

What is going on in N/3 of. Block54 T7s . And what is the going price per acreage to lease? I need to find a company that can lease my property .

There are many ways that you can find out what a mineral lease is going for in your area. You can talk to other owners who have mineral rights in your area and there are several websites that can help you negotiate or speak with an attorney who deals with oil and gas law. Be very careful when negotiating a lease because the oil and gas companies are very educated and can word a lease so that you are taken advantage of. Never accept the first offer because they offer the lowest amount they think they can get away with. Do not hastily sign anything. Take time to learn as much as possible about mineral leasing. The Texas Ag website and the Tx Railroad Commission are great places to do research and you can google texas mineral owners leases info and get several others. Most bonus offers are kept confidential (not public record) so its difficult for me to know that info unless I speak to mineral owners in your area. Often great neighbors who have been mineral owners for many years and know the industry are happy to help to share info. To find a lessee look to see who the operators are in your area (google: top oil and gas producers in Reeves co tx) to see a list of operators that you may wish to contact about leasing your minerals to. Dont rush, read alot, educate yourself, and get out and talk to your neighbors or other owners!


Thanks do much for the info

Anything new going on in Reeves county?

I have recently negotiated $1000.00 per rod with 10 year renewals on my property in the Permian basin (Pecos, TX area) with two large Energy companies.

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What size(s) tyoe(s) of line and how long?

DW12, that’s a really great rate! Especially with those 10 year renewals. Do you mind sharing how many inches of total pipeline diameter that $1000/rod covered? You must have had some extra bargaining power. Perhaps they couldn’t economically go around your land?

Wow, way more than we got. Must be location.

We did a 42" gas line approx 200 rods and 3 more like that with 30" gas lines. I like to use the 10x rule for offers. When they insult me with a $100 per rod quote, I get really mad. These companies didnt even counter back which makes me think that I could have got $1500.00 per rod. I live by this rule though…“Pigs get fat but hogs get slaughtered”

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You COULD have gotten $1500/rod for EACH of the three 30 inch lines and probably $2500/rod for the one 42 inch line. You let them off CHEAP…so I bet they’re laughing all the way to the bank about it.
This is one of those multiple pipeline ROW deals I mentioned elsewhere on this forum could net the surface land owner $7000/rod and one of the experts said they’d never heard of anyone getting anything close to $7000/rod.
But, I’ve heard that on the McElroy ranch near Alpine a single 42 inch gas line ROW paid them $8500/rod. Just depends on how big a land owner you are and the location of your land. If the pipeline can’t go around your property economically, they’ll pay WHATEVER it takes for the ROW.

in Verhalen, Reeves county, Tx:sunglasses::rofl::rainbow::ribbon::heart:

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DW12, your “rule” to live by is so true. 10 year renewals change the game when calculating whether a price per rod is good or not. Just so I’m clear, $1000/rod for 10 years, 132 total inches is what you meant, right? I assume the pipeline company did not have eminent domain.

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We are being offered $12,000 for 24 rods for a 10 inch line permanent line. We are near Pecos, TX and it seams that if we don’t accept an offer they would have to go around us and that would be 5 separate parcels that they would not need to deal with. I’d like to have a 10 year renewal option. It took some email back and forth to come to 12,000 and when I finally agreed then changed my mind when I saw the contract did not include an item I requested, he told me take or leave. I left it. Next day he added it and was very much nicer to me. I feel that there really must be more wiggle room. What do you think?

$500/rod and renewal at 10 years is not a bad deal for you. I hear others south of Pecos in Reeves county are getting those same terms.
You can get those terms for a second or third line in the same ROW.

, Reeves county, Tx :sunglasses::rofl::rainbow::stars::ribbon:

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Thank you so much for your reply. I was thinking more? -due to the fact that he would have to go around and through five other parcels if it didn’t go through our parcel. If it’s not a bad deal what would a good deal be?

Hi everyone and Lawrence (I hear that you are not feeling well and hope you are on the mend).

I have a question about easement as well. My family was approached and offered 500.00 sign bonus and 450.00 per rod with 1829 rods total for 2 pipelines. The property includes Section 22 Blk c-16; Sec 20 Blk c-16; Sec 17 Blk c-16; Sec 18 Blk c-16; Sec 14 Blk 1 with no renewal bonus. Does this seem right to you?
The company has called me twice and seem anxious about moving on this.

Thanks in advance

Wow, I need to up my ante. Blk C-18

Hi. I am a landowner of Section 15, Block 1, Tract K 43.89 acres in Ward County, Texas The company has requested that you be contacted to obtain survey permission and to negotiate the purchase of a pipeline easement, for a 12-inch diameter pipe within a 30-foot wide easement. The route as shown is approximately 53.21 rods in length across your tract. I am able to offer $120.00 per rod for a permanent right-of-way easement, which would be a payment of $6,385.20 for the easement across your tract. The total compensation and damages is $6,385.20, and the payment covering your 100% interest will be $6,385.20. The total area used by the permanent easements is 0.950413223 acres and our offer is equivalent to $6,718.34 per acre. After doing some research about pipeline easements and the county area offers to other landowners, I believe that this is an extremely low offer and insufficient. Any advice? Could use some help.

Google UT Lands Damage Schedule and start at 2x their rates, but very dependent on how crowded the infrastructure is already and whether they can go around you. Can vary from 5x to a little less than 1x.

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Thank you very much.