Reeves County offer for pipeline easement

I have been offered $440 per rod for each of 2 pipelines(70 ft easements) in Section 244/Block 13/A-4251/H & GN Survey. Is that a fair price? Thanks, JSW


I am saying this based solely on that being the initial offer. Keep in mind that the easement will take square acreage along the pipeline. Also the terms are important to consider. You may be well served by contacting an attorney licensed in your state.
You also didn’t mention whether this was a gathering line or whether the company claimed to have the power of eminent domain.

The first thing you should do is find out what size pipelines are proposed. The second thing you need to do is find a qualified lawyer for this subject, “Easements” in the Permian basin. The third thing you need to do is to research on your own for just the “Basement” payments for the size pipelines that are proposed to cross your land at the website for the “Texas Railroad Commission” (TRRC). These are very important “Initial” considerations you need to consider. When you search for your lawyer you need to consider the fluids being transported across your property. As two (2) pipelines are proposed they probably are one for oil and one for gas . . . . if so, the initial price should be attractive but will probably not be the “Top” . . . . . your lawyer will probably be able to earn his/her money here.

Stephen Watkins

First you should question them in the size of pipe. 12 inch to 42 inch. Then the rod length. Have them send you a platt to show where the lines will be place on the property. If they want to go straight down the middle, then that should cost them more. Rod length is less for them when they go down the middle. Better to have them go along property lines. Make sure that the price you quote is per each pipe in the easement.

Also get a 5 to 10 year renewal on the easement at the same rate or half rate. Remember that the first rate offer is their lowest offer. $650. Per rod on a 12in line $850. Per rod on a .24in line $1000. Per rod on a .32in line