Looking for advice. We received notice that Enterprise Delaware Basin is in the process of getting pipeline easements in Lea County, T25S, R35 E, section 4. We have some fractional ownership here via a quiet title filed in 2022 and a current active lease with ConocoPhillips. Surface rights were never severed. We feel the pipeline which is to be 1,639 feet and occupy over 3 acres (includes workspace) will severely affect the value of our property. Is it necessary to have a separate filing for surface rights in Lea County? Their initial offer is ridiculous and we will negotiate for a lot more. A very good and expensive lawyer handled our mineral rights quiet title and reviewed our lease agreement. Hoping not to engage another lawyer at least to start. Any suggestions are appreciated.
There is one company that owns approximately 50% of the property, do you know if they intend to accept the offer or their intent in regards to the pipeline
I have pipelines running through a few of my farms, what makes you think it will severely affect the value of your property? Hate to say it but if you own a fractional interest and not a controlling interest, your concerns dont really matter. Id start by talkin with the majority owners if youre that concerned about it affecting the value of your interest in the property. But as majority owners, theyre often able to negotiate things that improve their property, like new fences, a road, maybe a pond or 2, youll be fighting an uphill battle if your interest is small.
Thank you Bob77 for your perspective. I worry that a pipeline will limit further wells with that income potential, future development (imagine a solar farm when the oil runs dry 
), potential to sell the mineral rights at the high prices we have been offered in the past.
I will try to reach out to a majority owner as you and others have suggested before trying to negotiate with the pipeline company.
Depending on New Mexico law, the pipeline company may be able to exercise right of eminent domain for the pipeline in which case you cannot stop the pipeline. Your best position for negotiating compensation and terms is to join with the 50% surface owner and other surface owners.
Thank you TennisDaze. I would like to do this but I spent about 2 hours trying to find a phone number or email address for LeaCo128Ranch LLC based in Midland TX whom I believe is the majority owner. I have the names of the two principals but again, only the mailing address in Midland. I may have to resort to one of those “find people” sites that charge to get contact information or settle for snail mail that may or may not reach the principal owners.
Based on my fractional interest, the offer I received seemed to me to be about 25% of what it should have been
Thank you Jerry. I know they have not accounted for our fractional interest correctly. Even though it is small relative to the whole, I am asking them to acknowledge the correct fractional interest.
I feel their offer is woefully low considering the length of the pipeline and the acres involved. I am consulting the attorney who did our quiet title for mineral rights and got the correct allocation for us.
A pipeline running through your property will have no impact on future wells drilled, If anything it makes it more attractive as they dont have to truck the oil/gas as far.
Had a representative for the pipeline call and increased the offer
That’s good news. I told the right of way agent our offer was insufficient but I think he expects me to counter first.
Under New Mexico rules it does appear that eminent domain can come into play. If I do nothing, as a fractional surface rights owner, what happens if eminent domain is declared? Do I receiver any funds and if so how is it calculated?
Is the pipeline a transmission line or a gathering line? The art of negotiation is not just saying “that’'s not enough”. As long as that’s all you’re telling him, he’s not going to move much. The art is in making a counter offer that is substantially, maybe even double, more than what he is offering. Then it is a matter of being patient and continually making counters in small increments until he says “this is the most my client is willing to pay, period.” Usually the landowner is too emotionally involved to be patient enough to wait 'em out. It also helps to know what the market is. What are other pipeline companies in the area actually paying?
Right of way is for two 24 inch high pressure pipe lines