Anyone getting offers for Salt Creek Pipeline from Sage Resources? Got a call today. I know nothing of pipelines. They say 81 rods likely. Have no idea about price per rod and also is it a one time payment or is it ongoing? Any light you can shed on this would be helpful.
A Rod is 116 feet. Price runs anywhere from $125/rod (12" pipe) on up depending upon size of pipe. Get a lawyer to negotiate, since there are many issues, like the easement should be temporary for 10 yrs or under. Surface impacts are possible too All the best of luck. r / navgoat
I believe a rod is 16.5 feet
That is correct, a rod is 16.5 feet. In my recent dealings with Salt Creek they’ve paid $400-500 per rod for 12 inch and 8 inch lines. It usually a one time payment, although some companies will work with you on renewable term easements for a cheaper price.
Thank you Nic…just sent you a connection.
Yes, sorry, my typing was bad. 16.5 ft is correct. r / Fred
Damages due to leakage is also an issue your lawyer should include in your ROW agreement!
Mineral owners in T7S Blk 51 (Reeves County) engaged with the Salt Creek representatives. I rewrote the entire Easement that they proposed and they agreed to nearly 100%. Their easement is a hodgepodge of verbiage copied at random from generic sources. That should tell you something. We had a lengthy negotiation effort that eventually fell apart because they were very error prone and somewhat unprofessional. They offered $500/rod officially, but it was easily worth $750+/rod. In one of their tirades they kind of offered $700/rod but was never put in writing. We know one family settled for $500/rod. We decided to send them packing since we knew Oxy wanted to run flow lines and their own NGL pipeline in the vicinity and we didn’t want to disrupt their activity since we have a vested interest with our operator plus we were not comfortable with Salt Creek’s representatives and their operations. If you deal with them, make sure you get 10 year renewable terms. Salt Creek agreed to that in our efforts. Good Luck and be careful!
Great to know…thank you very much for the information. They had called me a while back a couple of times. Said they were in process of surveying sent me a crappy sample generic contract. Have not heard back from them now in a month or two. I’m in 55-5