Pipelines - What is the going rate?

[MN Gardener]

We just got a call from the pipeline company and they want to put a crude oil pipeline through the 35 acres that we are in the middle of buying. We knew this before we started to buy the property, so it is no surprise. My question is, how do we find out whether they are paying us enough for the easement? Has anyone had any experience with this process? What can we expect? Any help would be appreciated!

[mtman]

around here its 3.00 a foot from the gas co.

[ksfarmer]

Depends a lot on what the line crosses? Grass? Growing crops? Timber? Also, how wide a right-of-way do they want? What is required of them for restoration and repair of fences and roads?

[Sand Flat Bob]

Get an a experienced oil and gas lease attorney. There are lots of things that you need in the agreement to protect you. It is well worth the cost.

Bob

[okie farmer]

There was a gas line went threw close to where I live and they payed $90 to $120 a rod .

[texican]

In 2000, I got $7/foot. And that was across open pasture. If there's timber, they pay extra for the timber.

[fantasymaker]

Ive been offered $50,000 for 3/4 mile of right-of-way for a 36 inch crude oil pipline.

[SteveD(TX)]

They will probably get an appraisal. There is no "going rate" for pipelines that is common that I know of, unless you are talking about a specific location. Even then, differing factors come into play. Pipeline easements will be typically acquired at between 50% and 100% of the market value of the land, plus damages to the remainder, if any. The property owner typically retains the fee title to the land. Make them furnish you a copy of their appraisal, and if it doesn't seem fair, get your own appraisal.