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Old 09/11/07, 09:10 PM
wr wr is offline
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Join Date: Aug 2003
Location: Alberta, Canada
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Please explain your oil and gas industry

I don't want to hijack fantasymaker's thread but I'm really curious about the similarities and differences between Canada and US industry standards.
I'm curious about your easements and your method of measurement. When I prepare a pipeline right of way agreement, we have a plan showing the landowner's area and the amount of land required is calculated in acres, usually based on a 15 metre right of way for your usual sales loops and development programs (lager transmission lines, 36" and greater require more equipment and a larger right of way area), we do see 20 metre right of ways if a trench is carrying more than one line. Frequently, we will utilize temporary work space which would cover temporary use (up to 1 year) of land for pipe storage or addition area that might be required for bores and equipment movement. Are you paid for the acutal space used for the construction or are you paid only for the actual area of the trench? Are you also paid out for damages to crop loss after the construction? We don't expect to see a pipeline fully restored and back to full crop production for 3 - 5 years and a landowner would be compensated yearly during that time for crop loss and any other issues related to negative impact of their operation (severance of fields, subsidence, flooding, compacted soil, etc). We are required to provide fencing for livestock security, compensation if livestock needs to be moved, reimburse for any input costs that that the landowner may incurred and we can not force a landowner to take what we offer. If we can't agree with a landowner, it can be taken before the surface rights board and they will consider the issues at hand. If the landowner has issues with location, they will always find in favor of the landowner and the line will be moved to a suitable location. If the issue is compensation, they will consider local real estate values to be the guideline and we're seeing ROW compensation at well over $8000/acre right now.
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