Pipeline easements


#1

Does anyone know what is the going rate per rod for pipeline easement in NW McClain County?


#2

Is this eminent domain? What are they offering? If this is not eminent domain (condemnation/taking) then the price must also include the amount to go around you. In either case you should visit with attorney Harlan Hentges 405.340.6554 I’m sure he would not charge to visit with you.


#3

Usually around $100 per foot of permanent easement — 40’ would be $400 and 50’ would be $500/rod… And then all the “other” stuff that goes with it. Original contract offered on our land was a one pager – turned it into five pages. Attorney on your side is most wise – be sure to get everything you’ll need forever in your contract. We approached the process like the movie “Indecent Proposal” with Robert Redford years ago — once they write the check, you better have it in the contract already and be happy with the result…


#4

Current litigation going on in Iowa on pipeline compensation “AFTER” the pipeline is constructed and the property was under-valued by a court-order/compensation board decision! At least it’s moving in the surface owners direction somewhat and there are additional cases in the “pipeline” that dealing with insufficient after-the-fact compaction / crops / surface use compensation…


#5

A landowner is not required to accept any offer even when the party has (or claims to have) the power to condemn property.
If no agreement is reached the matter goes to court, commissioners are appointed who make an appraisal. Either party can object. Like the Iowa case provided by Okcnhra, a jury is not bound by the appraisal.

In Oklahoma, if certain conditions are met the condemning authority or company is responsible for the landowner’s attorney’s fees. See Downey Case.


#6

One other item I would offer here: If you have an oil or pipeline company appearing to want your property and you are not willing, get your legal counsel in order and be prepared. In your area, had an oil company wanting a pad site that began with the surface owner finding two people on his land in mid November doing a preliminary “look” – Certified letter offer late November and then a successful court appointment of appraisers mid December — all within less than 30 days with an amazing amount of paper filed with the court throughout, etc, most with 5 day response times – one hearing was the day before he received the certified notice of the hearing. By the time that the surface owner realized he was in trouble, the appraisal appointment was in place. Attorney working hard after-the-face on this one now but word to the wise… The oil/gas companies have a lot of legal power and are willing to use it to run over you if they so desire…


#7

The Question Should be “Am I Getting the Fairest Offer”

Think about it a Rod is a unit of measure of 16.5 feet. That is linear feet. When an easement is sought by negotiation or by eminent domain, they are not seeking a line. Typically, they are seeking a zone with the rod merely as the middle. For example, a rod with a 50′ easement zone requires 825 square feet. If an easement is 50 rods long, that is almost an acre.

In a recent case, a pipeline company paid some owners $180 per rod and others $767 per rod for the same project. The variance depended greatly upon the use of the property (residential vs. agricultural) and the ability of the owner to negotiate.

An Easement is a Forbidden Zone

The easement prevents you from using your property as you like or need to. For example, it can prevent you from planting trees, shrubs, or placing buildings. It can also forbid you from creating pond, lake or diverting drainage.

An Easement Prevents Development

Aside from normal operations, an easement may render your property unsuitable for certain types of development such as retail, operations expansion, wind farm or other opportunities.

What Will it Cost Them if I Refuse?

Don’t be afraid to say no!

If a company does not have the power of eminent domain, the cost is what is required to go around you?

Even a company with the power of eminent domain will face substantial expenses to obtain court intervention. And they still must pay you.

When and How Will the Easement Terminate?

Pipeline companies want a vague description of when and how an easement will terminate. Whenever possible, the owner should negotiate these terms.

Removal or Abandon in Place?

Easements often allow a company to abandon the pipeline in place. This gives the owner problems later. If the pipeline transported any hazardous materials the cost to remove may be very high.