I have some rural property in Collin County, Texas and I am looking for values on the easement for a 16" natural gas liquids pipeline. It is described as the "Sterling III Pipeline" in the literature. I am an atty, but have no exposure to this area so any helpful advice would be appreciated.
You might check out the University Lands schedule: http://www.utlands.utsystem.edu/forms/pdfs/Rate_Damage_Schedule.pdf
Be sure to get decent environmental language in your ROW agreement.
Dear Mr. Dunn,
A 16" line is a big line. Consider term easement with CPI escalation clause on term extension. Does the line have common carrier status? If so, pipeline companies have eminent domain rights, but are hesitant to use it - not good for business. They will threaten it from day one, though.
Also, on easements, 100% of the surface owners must join for it to be effective.
Depending on how aggressive you or your accountant are, split the payment up as to consideration and pre-paid damages. Get two checks.
Values are relative. I would start at $600/rod and see where it goes from there.
Have you heard anything recently from Oneok about this Sterling III pipeline? My property is in Trinity County. I gave them permission in Dec 2011 to perform a survey. They have been there to survey and do the archaeological surveys but I have not heard from them since.
I too have heard nothing RE: the Sterling III pipeline since they surveyed. I will post here when I hear anything new.
I received a proposed agreement today for $200/rod. I have a little over 100 rods. I have a landman working for me so I guess I will see what he can do.
Thanks for the update, please let me know what happens
Vernon said:
I received a proposed agreement today for $200/rod. I have a little over 100 rods. I have a landman working for me so I guess I will see what he can do.
Vernon- Do you recommend getting a landman? I was offered $208/rod yesterday. I'm in rural Collin County and have almost 200 rods.
Patti,
I am new at this so I'm probably not the one to ask. However, I hired this man on the recommendation of my neighbor who has used him for several years. My neighbor who owns three times the amount of land as me stated that he usually was able to get him 40-60% more money plus he is re-writing the contract to be more favorable to me. He is charging me 10%. In the future I will probably need help with my mineral rights so I thought I would let him do this for me and see how it turns out.
My parents had a pipeline go through our farm and it was for $1. a rod and they left alot of damage. The worst part was the contract read line or lines. guess what there are now 3 lines and they are 16 inch, 24 inch and the last 30 inch and you cant stop them. be careful . dont let line or lines or you are in trouble om future lines.
I was thinking this morning (that can be dangerous!). It seems to me that the pipeline company is basically wanting to buy the use of my property without having to pay any property taxes.
Assuming the life of a pipeline is 60 years I came up with the following figures:
They are basically saying that the property they are taking is worth $20,000 (100 rods at $200/rod). At the present tax rate that would put the annual tax at $388 . Property tax rates in this county have doubled over the last 15 years. If you carry that rate out for 60 years with assuming escalating tax rates that would come up to something like $47,000+ in taxes alone over the life of the pipeline. This does not even take into consideration excalating property values.
Do you think this argument has any merit?
The first pipeline through our farm was 1948 and its still going as far as I know.
Good question to ask taxman , they tax minerals in some states why not tax pipelines on product flow.
Vernon said:
I was thinking this morning (that can be dangerous!). It seems to me that the pipeline company is basically wanting to buy the use of my property without having to pay any property taxes.
Assuming the life of a pipeline is 60 years I came up with the following figures:
They are basically saying that the property they are taking is worth $20,000 (100 rods at $200/rod). At the present tax rate that would put the annual tax at $388 . Property tax rates in this county have doubled over the last 15 years. If you carry that rate out for 60 years with assuming escalating tax rates that would come up to something like $47,000+ in taxes alone over the life of the pipeline. This does not even take into consideration excalating property values.
Do you think this argument has any merit?
I'm just saying that the amount they are willing to pay me will not cover half of the taxes that I will pay on that same property over the life of the pipeline. Of course I will be 120 yrs old by then. LOL
gary speckman said:
The first pipeline through our farm was 1948 and its still going as far as I know.
Good question to ask taxman , they tax minerals in some states why not tax pipelines on product flow.
I have been approached by ONEOK regarding the Sterling III pipeline. I signed a survey permission over 6 months ago and I received a new request today (July 25, 2012). Does the survey permission expire? If so, is it legal for me to request payment for the surveyors to enter and survey the property with the new survey permission document?
Thanks
Ms. Allen
Dear Ms. Allen,
If you have already signed a survey agreement with ONEOK, then you are likely out of luck. Typically, I put a term of 6 months or so in a Survey Entry Permit and try to get a daily fee for supervision. The only thing left for you to do is read what you signed and see if the boat has sailed.
I am dealing with the Sterling III pipeline in N Texas and Oklahoma. The final destination is in Mount Bellvieu, where there have been several explosions over the past 5 years or so.
Did you mean explosions or expansions? I live a few miles from Mount Belvieu and I don't recall many explosions. Lots of expansion however.
Buddy Cotten said:
Dear Ms. Allen,
........The final destination is in Mount Bellvieu, where there have been several explosions over the past 5 years or so.
Best,
I spoke with a right-of-way agent quite awhile ago regarding my rural property in Collin County; was offered literally the minumum rate per rod; I did give the permission to survey and we met with them to discuss possible damages and addendums to their agreement; nothing since then as to a counter-offer; has anyone else settled with them; please give me any update you have; I don't want them attempting to begin construction on other pretense;
My counselor thinks that they are busy "harvesting the low-hanging fruit" and will deal with the clients requesting changes at a later date.
James said:
I spoke with a right-of-way agent quite awhile ago regarding my rural property in Collin County; was offered literally the minumum rate per rod; I did give the permission to survey and we met with them to discuss possible damages and addendums to their agreement; nothing since then as to a counter-offer; has anyone else settled with them; please give me any update you have; I don't want them attempting to begin construction on other pretense;
Thanks for replying; Do you know when they plan to begin construction?
I heard that they had announced intentions to have 100% of Sterling III ROW acquisition completed by Dec 31, 2012. According to their press release May 2, 2011 they stated that "Completion is scheduled in late 2013." I doubt they will make that schedule.
James said:
Thanks for replying; Do you know when they plan to begin construction?