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Property with gas pipeline outside of easement

6,766 Views | 17 Replies | Last: 10 yr ago by Chetos
Frosty
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Here's a question for you real estate experts...I have under contract a 10 acre piece of property on which we will eventually build a home. According to the survey there's a gas pipeline going through the property with a 30' easement. Upon physical inspection of the pipeline I realize that the pipeline is actually located 50 yards away from the location of the easement and going an entirely different direction. I pointed this out to the engineer who surveyed the property, and he says he has never seen this situation in his 30+ year career. He knows for a fact that the pipeline was originally located within the easement, but apparently at some point the gas company relocated the pipeline without securing a new easement. I'm supposed to close on the property next week. Anything I should consider before closing. Will I eventually have some recourse with the gas company?
aggielostinETX
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Aggiewave
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Complicated answer. The pipeline easement MAY have had second line rights as part of the original easement. That needs to be checked by your lawyer. Also if you aren't buying the mineral estate, and your mineral estate owner is using the pipeline to get gas to market you may not be able to do anything. Lastly, if you buy knowing the pipeline is not in the easement you may lose via adverse possession.
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Frosty
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Here are some pictures of the property to make it more relevant to the interests of this board




Frosty
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quote:
if you aren't buying the mineral estate, and your mineral estate owner is using the pipeline to get gas to market you may not be able to do anything. Lastly, if you buy knowing the pipeline is not in the easement you may lose via adverse possession.

There's no production on this property so the mineral rights aren't an issue. You've answered one of my main questions which is whether nor not purchasing the property with the knowledge of the pipeline locations voids any future recourse I my have with the oil company.
Yuccadoo
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There are many different types of pipelines and regulatory burdens, so I definitely would find out the players involved and whether or not the pipeline is active or inactive, the current throughput type and rate if active, is pipeline interstate or intrastate or a gathering system, etc.

Also, can they add additional lines, can lines to transport other liquids or gases be permitted, is gas or oil sour (H2S content), etc. JMHO.
Frosty
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quote:
What is the title company saying?

No one noticed the actual pipeline location before I pointed it out. I had the title commitment in place before I raised the issue, and now they've reissued their commitment with an exception related to the easement location. I guess I should have kept my mouth shut.

quote:
Would you still buy the property given the location of the pipeline?


The funny thing is the new location of the pipeline actually works out in my favor so long as I can get the old easement removed because the location of the old easement is where I would like to eventually build.

quote:
Is the pipeline within an easement on the neighboring properties? Are there any pipes in the easement? Are both pipelines marked?

Note sure if the rerouted pipeline is within an easement on the neighboring property. The other property is a golf course and the new route of the pipeline is entire contained within my property and the golf course. There were pipes within the easement at one point. I'm not sure if they dug them up when they moved the pipeline or not. Only the current location (outside of the easement) is marked.


quote:
Who owns the recorded easement? Who owns the pipe? What does the current property owner say?

Valero owns the easement as well as the pipeline. The previous owner does not know anything about this.

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Aggiewave
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Frosty: whether there is actual production on the property may not matter. The property could be unitized with other tracts owned by the mineral interest owner. I speak from experience in litigating a similar issue.
Aggiewave
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If you would like, you can give me a call to discuss further. Email is Kevin.Jordan@bakerbotts.com which will give you contact info
sunchaser
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Is the pipeline active?

Oops...I missed yuccado's posting.
10thYrSr
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Why not call 811 and have them locate the line. When the locator comes out, ask them about the history or situation.
normaleagle05
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I like the idea to have it actually located but LOL at the locator providing insight. These guys are generally third party (at best) and know nothing about the line that isn't on their work ticket. We send in lots of locate tickets at work and get few responses because the ticket tells the truth that it is for an engineering design survey. If we don't threaten imminent track hoes we usually get nothing located. Good luck getting anything located for a land title transaction. But it doesn't cost anything other than a bit of time to try.
Doc Hayworth
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Locators will not know anything about the history of an Easement. Their sole purpose and job is to locate the actual line, they have no idea where, legally anything is.
Tim Taylor
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quote:
Why not call 811 and have them locate the line. When the locator comes out, ask them about the history or situation.


This, 100%. The signs have no factual bearing on the line itself. All too often I find lines I'm working on that are anywhere from 6" to 100' off the pipeline markers, you can't trust them

Look for exposures, test leads, sunken ditch line, raised ditch line, or get a marker flag from someone and try your hand at witchin
locogringo
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Very hard to answer any questions without knowing how the easement document reads.

Go down to the courthouse and pull the Vol. and Pg. , post it up here and it may be easy enough we can help. But most likely with easements you will want a lawyer to interpret it, not just the Outdoor Board experts.

Hopefully the "affect land" in the easement is not the entire subject property, and hopefully it is a meets-and-bounds easement and not a blanket easement with a clause saying that the line can be relocated anywhere they want.

However, since you like the new location, this should be easily resolved.

I would DEFINITELY push to get a new easement, a meets-and-bounds easement, in the proper location and have the oil company abandon the old easement document (at least within the subject property) or similar issues could arise down the road.
10thYrSr
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You are right, but sometimes you get the old locator who put in the gas pipes that warmed jesus's first bottle. Those guys can be helpful.
Chetos
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your making it too complicated...call the number on the sign...accuse them of being in trespass and wait for the pipeline land man to show up...if you don't like his response hire your own land man and start negotiating. If they are in the right, he will provide all the proof to you without you spending a dime on some blood sucking lawyer. If he's in the wrong , you will know by how he responds and then you know you can hire your own blood sucking lawyers and bill them for the lawyer and damages and then start to negotiate a settlement.
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