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Pipeline coming across family land

7,036 Views | 74 Replies | Last: 3 days ago by O.G.
GentrysMillTX10
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We received word recently that a new pipeline project will be crossing one of our family properties in Mills county. There is not a pipeline there currently. We do not have experience with negotiating with a pipeline company. I don't want to be a jerk and demand astronomical money from the pipeline company but I also don't want to roll over and agree to sign their first contract/offer.

Do we need an attorney to consult on contract verbiage? If so, who is recommended? I assume this would be oil/gas attorney, not my generic family lawyer.

Is there a resource somewhere where we can read about landowner rights and what to be aware of/concerned about with pipeline projects?

What advice can yall give?

Little more info on the land…

It's a 212 acre property in northern Mills county, nearest community (on a map) is Priddy. We own the land primarily for hunting but we obtained it in a 10-31 exchange after selling rental properties in the metroplex. The land does have a livestock lease with a local guy. He runs sheep, goats, and occasionally cows. There is cultivation and the pipeline will cross the cultivation. No concern with the pipeline opening line of sight from the FM road due to the change in elevation and going across the cultivation for the majority of the property. We will lose some deer hunting brush, it will likely change how we hunt the place, but the change could be for the better. Part of the cultivation is baled triticale right now.

OnlyForNow
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That kinda stinks for location across the pasture, I would most likely engage an attorney for contract language, I'd also try to get them to push it potentially closer to property boundary, they are probably going to be against that because it could create a PI (point of inflection - pipe angle change), but maybe they'll concede.

Talk to other locals about price.
BrazosDog02
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That always sucks but squeeze what you can from them. Ag won't be affected and now you have someone to maintain your new sendero for deer.

Our neighbor was an attorney and successfully navigated a pipeline on their large property that was all wildlife exempt. The managed to negotiate the width down to a tiny strip to keep as much of their wild habitat as possible.
GentrysMillTX10
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Forgot to add - we are surrounded by a wind farm, so asking them to move location of pipeline probably isn't likely due to the surrounding wind farm infrastructure.

There was no wind farm and obviously no pipeline when we bought the place in 2007. The picture in the original post is the only piece of fence line that isn't new after investments last year. The pipeline will cross year-old fence in 3 spots
dahouse
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I suggest Jackson Walker for representation. They are experts in this type of thing
Cody
Fightin Texas Aggie c/o 04
Chetos
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Pipelines are fairly minimalistic in their impact footprint. The main thing is future building pad/sites. Make them hug the perimeter fence and get a perimeter road out of it. Don't let them bisect a small piece of land like that.
dahouse
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If you want them to re-route you get much less compensation.

I'd hire a good firm and negotiate in good faith. We just did a pipeline job and got below ground rights only so the landowners knew we'd never put any stations or MLVs.

Cody
Fightin Texas Aggie c/o 04
one safe place
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Get an attorney that has experience with pipeline easements.

Find out what your neighbors are being offered.

Be sure the agreement has a most-favored-nations clause in it. If the attorney doesn't catch that, fire him or her and get another.
Naveronski
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We went through this recently, and there were several threads on here that were helpful. Let me see if I can find them.

edit:
High pressure natural gas pipeline - https://texags.com/forums/34/topics/3310595
pipeline crossing our place - https://texags.com/forums/34/topics/2254026
Pipeline easement Right of Way - https://texags.com/forums/57/topics/2650727/1

It's a long frustrating process. **** eminent domain. Good luck.
HarleySpoon
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- I've been thru one pipeline condemnation….my final payment was five times their last, best offer.

- I've been thru one office building condemnation….the final payment was significantly more than we had hoped for..

- I'm in the middle of an inverse condemnation and just received a very positive decision from the Texas Supreme Court yesterday.

I would be concerned in your situation that the easements entrance in the middle of your already limited road frontage (relative to the size of the tract)….will significantly diminish your ability to subdivide the property and lower your total value.

PM me your phone number and I'd be happy to give you my insights. I'm not an attorney and have no services to offer.
cheeky
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Is this part of the Matterhorn? My brother's in-laws have been dealing with that one. If so, google their website and under FAQs there is a Texas Landowners Bill of Rights pdf and other useful information.
Dirty-8-thirty Ag
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I think the Matterhorn construction is done. They have already reseeded their easement on us.
techno-ag
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cheeky said:

Is this part of the Matterhorn? My brother's in-laws have been dealing with that one. If so, google their website and under FAQs there is a Texas Landowners Bill of Rights pdf and other useful information.
Could be Apex although I've heard Apex decided not to build even after getting the go ahead from the RRC.
Gunny456
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What they won't tell you and will deny all day long is that the trend now is for " energy corridors". They start with a single pipeline or transmission line and then you end up having multiple energy or water or other pipelines following in the same corridor. We found that out the hard way.
Make all the effort you can to make them find another route. And don't let anybody tell you that can't be done.
regularjoe
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Definitely get an attorney to help. Ask for exactly what you want regarding compensation, width of the easement, route, etc., and then be patient. Don't be afraid of the impending court date if you get sued. Just hang in there, and don't be the first landowner to sign. Your attorney should be able to draft your own easement that is much more landowner friendly.
Doc Hayworth
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Joe Will Ross out of San Angelo is who you need to contact. He specializes in negotiations and settlements with oil and gas pipeline companies. He took care of me when the Mattahorn crossed my place in San Saba County. He represented property owners from San Saba county all the way to Tom Green county.
dahouse
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Make sure they only get single line rights and that goes away. That's what we did when acquiring ROW.

Multi-line rights would be more expensive and we didn't need it.

Not sure what a "energy corridor" would be with water lines. If I pay for an easement I guarantee no one else is putting anything in it.

And water companies are usually hard nosed about their easements. No one shares so I'm not sure how that happened.
Cody
Fightin Texas Aggie c/o 04
BrazosDog02
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Can't these companies just eventually say "Yeah, well, F--- you, here's your 10 bucks and we're doing it anyway."???

Do they have to negotiate at all? That's always been my worry.
dahouse
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It's not that simple. It's actually a very regulated process that's weighted toward the landowner.

We just went through this are still doing final mediation on some tracts.

Everything is based on appraised value. In our situation, land values were increasing so fast that appraisals weren't really valid after a month or two. That's the rub, imminent domain has timetables built into the system.

First you get an appraisal. You offer the landowner appraised value. That's your IOL, initial offer letter.

The landowner has a set period of time to respond. If they respond, we begin negotiations. Some companies may not.

Next is FOL, final offer letter. If the landowner responds, we negotiate. Some companies may not.

If no response, you set a hearing in court. This can take months to get a hearing.

Three commissioners are appointed and they hear both appraisals from landowner and pipeline and decide.
Everything can be appealed and/negotiated.

We preferred to settle where we can, even if the price was way over appraisal to avoid the legal fees and trouble.

We worked with some landowners under a possession and use agreement (PUA). They gave us possession of the ROW so we could install, and we paid appraisal, with the understanding that we negotiate final settlement after construction is done.

We got burned on a couple of those because of land value spiking.

I will say, this was my first time and we didn't bisect anyone's property. We took 30' adjacent to existing road ROW and it's all ag land. They can still plant on top of us.
Cody
Fightin Texas Aggie c/o 04
HarleySpoon
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Texas is less friendly to the landowner than most other states.

- about 40 other states require reimbursement of your legal and appraisal costs if the final amount is less than the best, final offer.

- a number of other states require payment of 150% of the market value if the land has been in the family for at least 100 years.

- a number of other states require 125% of market value if it is agricultural land being taken.

A&M did a fairly comprehensive report/study on this topic a few years ago.
BlitzGD
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Have them hug the property line.

If they don't then OP needs to be compensated for the ENTIRE SWATH "north" of the pipeline in the picture. There is a less than zero chance that the pipeline will not allow any vehicular traffic across it except for designated crossings. Which would then "sever" the north part of the picture from most "easy" access.
Quarterback can't throw the ball lying on his back.
Gunny456
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In our instance a company about two years later wanted to move water to central Texas down the same pathway. Then another power transmission line from wind power followed and a third transmission line company also later. You ( meaning your company) may establish your easement but other entities will then try to utilize that same general path for future growth. Your company would have no control on another easement for another entity going next to yours.
This is happening in many areas and states. …. And the initial easement was only the beginning. We found out later in legal action that in fact plans were in place for that corridor many years before.
You can find these corridors all over Texas and other states now.
You may guarantee to the landowner that nothing else will be in your easement but my point is these initial pathways are then expanded again and again in some instances.
Gunny456
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Gentry's …. We fought a similar issue for two years on one of our properties. Form an alliance with other landowners that don't want it on their property and find an attorney that will help you guys to fight to move the path…… not an attorney to help you negotiate. There are literally hundreds of attorneys that say they will help you fight for your money….. just like the hundreds that you see on TV to help you get money for a car wreck.
Understand that most are in it solely for the money they will get from you and not really what happens to your property. That's what we experienced anyway.

Build It
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If you ever wanted to split it up into smaller tracts and sell for profit the pipeline will really screw with your lot layout. You should be compensated for that.

You'll need an attorney to argue it for you.
Burdizzo
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I still contend that an easement compensation should be based on how much it is used. In other words, if you have common carrier status and want to cross my property and use eminent domain to get it, that fine. Then you must pay me $x.xx/mcf of natural gas (or whatever commodity youre transporting), and we're going to renegotiate that fee every few years.

Easements are for the "use" of the land, not perpetual ownership.
Gunny456
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Deerdude
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I require 90 degree turn at entrance and exit of property to eliminate the shooting lane for poachers.
Demand seeding of your favorite grass at 100-150 % recommended rate. Demand annual treatment to prevent regrowth, or improved road and annual maintenance, whichever you choose.
If it crosses an interior fence require a gate and a cattle guard.
Pretty much all I got. Wildlife likes "edge" . I like Row's on our place.
Mas89
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Some pipeline companies in our area have installed metal pipeline marker signs marking their row throughout the field. Even in hay fields, grass farms, and row cropped fields. Previously these same companies only had signs on the fence line of each end of the field. This has become a real problem so consider addressing it in your agreement.

Diminished value to the entire tract is real and you need an attorney willing to get it. Pipeline companies hate that this is a part of Texas state law and few landowners pursue it. When a pipeline crosses a tract with no previous line there like in op, the entire tract is diminished in value.
dahouse
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That was something we made sure to tell the landowners and tenant farmers. Market signs and CP test stations at property lines and fences so we didn't interrupt farming operations.

Cody
Fightin Texas Aggie c/o 04
ttha_aggie_09
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Perhaps they're having an issue with 3rd party damage and increased ROW markers are for goo measure…
O.G.
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BrazosDog02 said:

Can't these companies just eventually say "Yeah, well, F--- you, here's your 10 bucks and we're doing it anyway."???

Do they have to negotiate at all? That's always been my worry.
Please don't perpetuate these myths.....No they can not.

OP, don't take the first offer. Good news is that other than the one planting/harvest of hay that particular year, you will still have your hay field. Also, ask for crop damages and have documentation.

Bad news is that you are going to lose some of those trees. They will pay damages but the price is going to be pretty much a uniform/standard price. Unless you have a giant/ancient oak in there or something. (Side note: Black Wallnut trees are money....)

As advised above, get a lawer but NOT some firm from Austin that comes to save the day that signs up a bunch of landowners promising higher pay outs. They are going to negotiate for a higher pay out, because they are taking 40%. I'm not making this up.

I can't tell a landowner what to do. But, there are two kinds that I deal with. Ones that listen to me and read between the lines when I lower my voice or raise my eye brows.....and ones that get ran over. Ask about fees etc before you sign with an attorney.

Also, locate a fence contractor now. Make friends with him, tell him whats going on. Don't wait until the project starts to do this. The company has to fix your fence back as good as, or better than it was & you can choose who does the work. The company can't dictate that. They may act like they can, but they can not.

Take everything you hear from the neighbors/facebook etc etc with a grain of salt. I've seen/heard plenty of landowners sell each other out, or lie about how much they got paid.

Lastly, make sure that the title on your property is up to date and in YOUR name. If its you and your wife or in a trust, thats fine. But....on almost every project I get a case were grandpa bought the land after the war, eventually died, then Gen 2 & Gen 3 just kept paying the taxes. I can not write a check to either Gen 2 or Gen 3, because the title isn't up to date. "But I pay the taxes" does not make you the owner. This part should be taught in the 7th grade, I swear.
dahouse
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There's also regulations for placement of markers. If I recall correctly it's line of sight, crossings (road, water, other pipeline or utility), and all PI's
Cody
Fightin Texas Aggie c/o 04
ttha_aggie_09
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There's absolutely regulations but they vary, I believe, based on 192 or 195 (product type)
Mas89
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ttha_aggie_09 said:

Perhaps they're having an issue with 3rd party damage and increased ROW markers are for goo measure…
Nope, they had never had an issue in my neighbors hay fields before putting up the metal signs. Needless to say, big hazard to the hay cutters and other farm equipment. A different company installed them on my land after a new pipeline was installed. We thought we had all of the unknowns covered but they proved us wrong.

ETA that another regular problem is the companies getting off the row during pipeline maintenance or repairs and damaging farm fields and roads. Especially where the pipeline crosses large ditches, bayous, and irrigation canals. Some of the older row agreements did not restrict use to the row only but gave them access to the entire tract.
Mas89
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I think you are correct. The new signs are numerous out in the fields. A real pita. It's almost like some companies are looking for a fight with landowners. After contesting the placement, signage was added stating it's a federal offense to tamper with the signs…
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