# Question about negotiating a pipeline easement deal

**URL:** https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196
**Category:** Oil & Gas Field Operations
**Created:** [May 2, 2025, 8:11pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196 "2025-05-02T20:11:19Z")
**Posts on this page:** 20
**Page:** 1

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### Author: ![Snowbird](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/cab0a1/32.png) [@Snowbird](https://www.mineralrightsforum.com/u/Snowbird)
#### Post date: [May 2, 2025, 8:11pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/1 "2025-05-02T20:11:19Z")

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Looking for advice. We received notice that Enterprise Delaware Basin is in the process of getting pipeline easements in Lea County, Township 25 South, Range 35 East, 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.

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### Author: ![Jerry\_Ithaca](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/jerry_ithaca/32/20498_2.png) [@Jerry\_Ithaca](https://www.mineralrightsforum.com/u/Jerry_Ithaca)
#### Post date: [May 3, 2025, 12:41pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/2 "2025-05-03T12:41:57Z")

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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?

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### Author: ![Bob77](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/b/c37758/32.png) [@Bob77](https://www.mineralrightsforum.com/u/Bob77)
#### Post date: [May 5, 2025, 6:44pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/3 "2025-05-05T18:44:42Z")

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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 don’t really matter. I’d start by talking with the majority owners if you’re that concerned about it affecting the value of your interest in the property. But as majority owners, they’re often able to negotiate things that improve their property, like new fences, a road, maybe a pond or two. You’ll be fighting an uphill battle if your interest is small.

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### Author: ![Snowbird](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/cab0a1/32.png) [@Snowbird](https://www.mineralrightsforum.com/u/Snowbird)
#### Post date: [May 6, 2025, 2:52pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/4 "2025-05-06T14:52:00Z")

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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.

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### Author: ![TennisDaze](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/t/dbc845/32.png) [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [May 6, 2025, 5:31pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/5 "2025-05-06T17:31:04Z")

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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.

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### Author: ![Snowbird](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/cab0a1/32.png) [@Snowbird](https://www.mineralrightsforum.com/u/Snowbird)
#### Post date: [May 6, 2025, 7:27pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/6 "2025-05-06T19:27:26Z")

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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.

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### Author: ![Jerry\_Ithaca](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/jerry_ithaca/32/20498_2.png) [@Jerry\_Ithaca](https://www.mineralrightsforum.com/u/Jerry_Ithaca)
#### Post date: [May 6, 2025, 8:29pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/7 "2025-05-06T20:29:32Z")

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Based on my fractional interest, the offer I received seemed to me to be about 25% of what it should have been.

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### Author: ![Snowbird](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/cab0a1/32.png) [@Snowbird](https://www.mineralrightsforum.com/u/Snowbird)
#### Post date: [May 6, 2025, 9:15pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/8 "2025-05-06T21:15:34Z")

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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.

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### Author: ![Bob77](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/b/c37758/32.png) [@Bob77](https://www.mineralrightsforum.com/u/Bob77)
#### Post date: [May 7, 2025, 12:24pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/9 "2025-05-07T12:24:13Z")

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> [@Snowbird](#):
>
> 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.

A pipeline running through your property will have no impact on future wells drilled. If anything it makes it more attractive as they don’t have to truck the oil/gas as far.

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### Author: ![Jerry\_Ithaca](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/jerry_ithaca/32/20498_2.png) [@Jerry\_Ithaca](https://www.mineralrightsforum.com/u/Jerry_Ithaca)
#### Post date: [May 8, 2025, 10:56pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/10 "2025-05-08T22:56:00Z")

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Had a representative for the pipeline call and increased the offer.

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### Author: ![Snowbird](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/cab0a1/32.png) [@Snowbird](https://www.mineralrightsforum.com/u/Snowbird)
#### Post date: [May 9, 2025, 12:08pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/11 "2025-05-09T12:08:14Z")

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That’s good news. I told the right of way agent our offer was insufficient but I think he expects me to counter first.

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### Author: ![Jerry\_Ithaca](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/jerry_ithaca/32/20498_2.png) [@Jerry\_Ithaca](https://www.mineralrightsforum.com/u/Jerry_Ithaca)
#### Post date: [May 10, 2025, 9:49pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/12 "2025-05-10T21:49:42Z")

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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 receive any funds and if so how is it calculated?

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### Author: ![D\_Wells](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/d/a3d4f5/32.png) [@D\_Wells](https://www.mineralrightsforum.com/u/D_Wells)
#### Post date: [May 10, 2025, 9:54pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/13 "2025-05-10T21:54:48Z")

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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 counteroffer 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 them out. It also helps to know what the market is. What are other pipeline companies in the area actually paying?

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### Author: ![Jerry\_Ithaca](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/jerry_ithaca/32/20498_2.png) [@Jerry\_Ithaca](https://www.mineralrightsforum.com/u/Jerry_Ithaca)
#### Post date: [May 10, 2025, 10:11pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/14 "2025-05-10T22:11:01Z")

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Right of way is for two 24-inch high pressure pipelines.

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### Author: ![Jerry\_Ithaca](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/jerry_ithaca/32/20498_2.png) [@Jerry\_Ithaca](https://www.mineralrightsforum.com/u/Jerry_Ithaca)
#### Post date: [May 13, 2025, 5:40pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/15 "2025-05-13T17:40:17Z")

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If you are a fractional owner (less than 1%) in a non-subdivided parcel of land, with both MI and surface, is there any value in hanging on to the surface rights?

The property is producing oil and gas.

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### Author: ![Snowbird](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/cab0a1/32.png) [@Snowbird](https://www.mineralrightsforum.com/u/Snowbird)
#### Post date: [May 14, 2025, 11:31am UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/16 "2025-05-14T11:31:26Z")

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I am curious about this too. Our inheritance goes back to the 1920s and our ancestors certainly couldn’t anticipate the future productivity of this property they acquired. I feel like holding onto surface AND mineral rights for generations to come if I am able. As I understand it, selling would have tax implications. Hard to predict what changes may be in store in the next hundred years.

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### Author: ![AJ11](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/a/838e76/32.png) [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 17, 2025, 1:02am UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/17 "2025-05-17T01:02:25Z")

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I searched “Leaco 128 Ranch LLC” and a site’s Network Visualizer indicated one person associated with Leaco 128 Ranch LLC also has a connection to Aquinnah Resources LLC in Midland, Texas. Aquinnah has a listed phone number which should be easy to find. Hope this helps.

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### Author: ![AJ11](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/a/838e76/32.png) [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 17, 2025, 1:02am UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/18 "2025-05-17T01:02:33Z")

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I searched “Leaco 128 Ranch LLC” and a site’s Network Visualizer indicated one person associated with Leaco 128 Ranch LLC also has a connection to Aquinnah Resources LLC in Midland, Texas. Aquinnah has a listed phone number which should be easy to find. Hope this helps.

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### Author: ![Snowbird](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/cab0a1/32.png) [@Snowbird](https://www.mineralrightsforum.com/u/Snowbird)
#### Post date: [May 17, 2025, 12:17pm UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/19 "2025-05-17T12:17:23Z")

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Thank you! I was able to get in touch with the majority owner in the section and he was very helpful. He shared that they have negotiated much in the way of land protection in the agreement that will benefit us as small percentage owners. I didn’t get specifics but appreciated his taking time and interest in my family’s situation.

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### Author: ![AJ11](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/a/838e76/32.png) [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [May 18, 2025, 1:45am UTC](https://www.mineralrightsforum.com/t/question-about-negotiating-a-pipeline-easement-deal/81196/20 "2025-05-18T01:45:28Z")

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You’re welcome. Glad to have helped you get in contact with the majority owner.

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