# Pipeline Easements
**URL:** https://www.mineralrightsforum.com/t/pipeline-easements/23717
**Category:** Landman Discussion
**Created:** [March 16, 2011, 6:31pm UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717 "2011-03-16T18:31:06Z")
**Posts on this page:** 7
**Page:** 1
### Author:  [@Laura\_Reagan](https://www.mineralrightsforum.com/u/Laura_Reagan)
#### Post date: [March 16, 2011, 6:31pm UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717/1 "2011-03-16T18:31:06Z")
A question has come up regarding the granting of pipeline easements. On our property we have historically given non-assignable easements and each time that a line sells, we negotiate with the purchaser of the line for their use of the easement. A new person in our group has suggested that we start leasing easements for periods of 10 years, following the guidelines our State uses in granting easements and tying the price to whatever price the State is charging. Their argument is that they want to see us paid every 10 years. I hesitate to “fix what ain’t broke.” I would like to hear any opinions on this issue.
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### Author:  [@Rocky\_Arrell](https://www.mineralrightsforum.com/u/Rocky_Arrell)
#### Post date: [March 16, 2011, 9:49pm UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717/2 "2011-03-16T21:49:19Z")
Our owner group is reluctant, and seldom agrees, to “perpetual” easement grants; rather, we sign “term” grants of negotiated years/payment (1) we recognize “rent” on property rather than having to account for basis-value of regular income (2) defers payments for later and ongoing years (3) provides for escalating payments for renewals: I recently negotiated a 25 yr. term for $800/rod with 5x10 year term renewals beginning at $250/rod and then CPI-index escalation for successive renewals … 75 year absolute term.
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### Author:  [@Laura\_Reagan](https://www.mineralrightsforum.com/u/Laura_Reagan)
#### Post date: [March 18, 2011, 5:37am UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717/3 "2011-03-18T05:37:21Z")
Our owner group is reluctant, and seldom agrees, to “perpetual” easement grants; rather, we sign “term” grants of negotiated years/payment (1) we recognize “rent” on property rather than having to account for basis-value of regular income (2) defers payments for later and ongoing years (3) provides for escalating payments for renewals: I recently negotiated a 25 yr. term for $800/rod with 5x10 year term renewals beginning at $250/rod and then CPI-index escalation for successive renewals … 75 year absolute term.
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### Author:  [@Laura\_Reagan](https://www.mineralrightsforum.com/u/Laura_Reagan)
#### Post date: [March 18, 2011, 5:38am UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717/4 "2011-03-18T05:38:25Z")
That is very interesting, Rocky. I would like to know more about this concept. Do you have an attorney you could recommend to me?
Our owner group is reluctant, and seldom agrees, to “perpetual” easement grants; rather, we sign “term” grants of negotiated years/payment (1) we recognize “rent” on property rather than having to account for basis-value of regular income (2) defers payments for later and ongoing years (3) provides for escalating payments for renewals: I recently negotiated a 25 yr. term for $800/rod with 5x10 year term renewals beginning at $250/rod and then CPI-index escalation for successive renewals … 75 year absolute term.
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### Author:  [@Laura\_Reagan](https://www.mineralrightsforum.com/u/Laura_Reagan)
#### Post date: [June 28, 2011, 7:16am UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717/5 "2011-06-28T07:16:25Z")
Rocky, I am in the middle of negotiations on a pipeline and wondered if you can explain to me why you choose term leases over perpetual leases.
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### Author:  [@Rocky\_Arrell](https://www.mineralrightsforum.com/u/Rocky_Arrell)
#### Post date: [June 28, 2011, 2:25pm UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717/6 "2011-06-28T14:25:14Z")
Not in any particular priority (1) as a term grant rather than perpetual, the income is recorded as rental rather than a sale proceed for which “value basis” has to be established (2) it provides for a future income stream on the property as long as the ROW is in term … our most recent for a non-hydrocarbon pipeline was for initial term of 25 years, then five successive 10 year extensions (optional) for $/rod plus adjustment for CPI. It’s also popular to limit the depth of the ROW easement.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 4:29am UTC](https://www.mineralrightsforum.com/t/pipeline-easements/23717/7 "2018-08-15T04:29:09Z")