Value of Surface Rights

Hi Everyone:

I just heard from a company that wants to purchase some surface easements, for 2 parcels I own in Section 16 Culbertson County. It looks to be around 97 RODS, University of Texas Schedule page 7 says $48.00 per ROD, they had a higher number than that, does anyone have any idea of the right number per ROD?. I understand that surface rights are not as exciting as mineral rights, I get that, however you must admit, without access its all just talk isn't it? Lawrence? anyone have anything to contribute?


Vince Murdock

Vince.....they pay for a ROW by the ROD not yard. A rod is 16 feet. If the right of way proposed is 97 it 300 feet, divided by 16 ft/rod is approximately 6.6 rods. UT Texas schedule minimum is $120/rod for one 4 to 6 inch
pipeline. But the rate varies with how many and how large diameter the pipelines are to be placed in that ROW.

Keep in mind that the UT land compensation schedule is a MINIMUM suggested guideline. You are free to ask whatever
rate per rod YOU think it's worth to you for them to cross your property and up to them what they are willing to pay
you for that access. It depends on their side what they are planning to do with the line(s) placed in that ROW and how critical it is to their operation.

Are they crossing under a highway and tunneling onto your property? That would be a critical point in their pipeline
infrastructure and be worth more to them to have a secured ROW agreement with you to complete their line.

You need to get a lawyer to negotiate the price of the right of way for you with the company in question and do due
diligence on how critical that ROW is to the company's operation.

Hey Lawrence;

There is no highway near my 2 parcels, the proposed line runs from west to east across the North portion of one lot continuing across the lot North of the first one, both 10 acres. The lines are for Gas 6" and 8" lines.


They'll hand you that University of Texas payment schedule and probably try to get you to take $360/rod for the
6.6 rods. So, are you comfortable with about $2200 for the right of way?

Hey Lawrence it's 97 Rods! I didn't mean to say yards, I am so sorry!


Hold out for $360/rod and get nearly $36,000 for the right of way. It's not a fortune, but that's not bad.

Gotcha Lawrence! Thanks for the guidance. We'll see how the survey turns out.

Vince Murdock

I assisted a fee owner in the negotiation of his right away. We received around $500 per rod.

Vince.....Buddy is right. I neglected to say GET YOURSELF A LAWYER TO NEGOTIATE FOR YOU!! Buddy is a good one.


Thank you for the compliment, but I do not have a law degree. One major and several minor degrees, yes, but no law degree.


Buddy Cotten

Howdy there Buddy!

You certainly seem to be a good person to know! If I was able to achieve that kind of result, I might have to fly out and take ya'll out to a nice dinner!

Vince Murdock

Howdy Lawrence!

Truer words have never been spoken! It's not the first time I have seen this route though, sometimes these surveys go nowhere, other times there are other land owners that don't want to

do anything, We'll see what happens.

Vince Murdock

I also received an offer in block 112 for literally nothing worth using any oxygen for. What is going on in this area? Any ideas?

Hey Art:

Tell us more, No Oxygen? an offer is better than a can we survey your land for free?


I have already had two companies 7 years ago survey the land. I was told to hold until oil hits 65 a barrel. Then the so-called frenzy should start.

Hey Art:

We'll see, I think over time there will be some interest, I must say price per Rod are all over the place, I think over all funds are coming to the USA in a big way, we'll see, im in Cali, where are you?


A point to remember with surface right dealings is that pipeline companies can adjust their plans to go around landowners who are demanding too much for leasing rights.

Just something to keep in mind during these negotiations.

I'm in Illinois 2 hours south of Chicago. I do think it will pop since big uncle is allowing the export of oil.

I thought of that. This guy was just offering 2200.00 for all the land. No monthly, just title.

Hey Art:

It will pop one of these days, it seems they are just being cheap skates, paying a chunk of money will not hurt them at all, through this online resource, people are smarter, how much land do you own?? I have 2 parcels 10 Acres each in Culbertson, in California thats $3 million!