I am wondering if $5.00 a foot is a reasonable amount to be paid for an oil company laying a connecting pipeline across our land in Northern Ellis, County, Ok?
Way too low. $425 per rod is more reasonable which is more like $25 per foot.
1 Like
Prices can vary depending on the size of the pipeline (such as 4 inch vs 18 inch) and width of ROW (such as 30 feet vs 50 feet). The pipeline ROW agreement should be reviewed by an attorney as terms are important. You want to limit the ROW to a single pipeline and be sure it expires upon cessation of use, rather than being a permanent ROW. Do not grant an exclusive ROW to the pipeline company as that limits some future revenues. Another company may want to install an electric line or another pipeline which crosses the easement and you want to be paid for that. Access should be limited to ROW or specific road and not to allow the company to drive across your land anywhere it wants as that damages grasses and crops. You should also have a ROW for the road if it is needed. Location of the line matters if you are using the land for cultivation or plan to sell or subdivide. The value of a tract is diminished if the pipeline cuts diagonally, rather than along an edge. A surveyed plat should be attached to the agreement, not a reference only to the whole tract. I do not know what the OK eminent domain laws are regarding pipelines and whether this line is under those rules.
3 Likes
I don’t know much about Oklahoma law, but I’m sure it’s pretty close to Texas law. Baiscally, someone who wants to build a pipeline say to some government agency, " We NEED to build this pipeline going ‘“here”, and the agency says, "Why, of course you NEED to.’, and then they offer your something for the right to “take” your property for “public good” and you can accept their offer, or negotiate a better offer, or they condemn your property, and some sort of government entity is formed to arbitrate the offer, and you can accept the arbitration, or reject it and throw the matter into the court system and, maybe, if the pipeliners are ultimately unsucsessful in delaying the suit forever, you can try to get a better deal in open court. So hit them with a MUCH higher fee and ask an attorney to review th terms of the easement.
This is not a truly accurate description of Texas eminent domain law. In Texas, only some pipelines qualify eminent domain laws. Many other pipelines, particularly small operator lines and SWD lines, do not. It is based on statutory definition, as interpreted by case law. The large electric transmission lines, such as installed by Oncor, go the PUC under hearings and get orders. If you go through condemnation, then there is first a Commissioner’s Court hearing regarding value and then either side can appeal to district court regarding the value. State law varies greatly and there is every likelihood that OK eminent domain varies in significant ways from Texas law, just as oil and gas law varies.