This is a long shot, but thought someone on here might have some knowledge. A pipeline company is going to offer a family member on an easement through our property. The pipeline is 42" in diameter. Anyone have an idea what the going rate is for this kind of easement? Thanks in advance.

Insufficient data. Need to know desired easement width, area of the state, what kind of product in the line, how many lines they want the right to install, whether they will have the right to come back and add more, etc.

What company? Did some work for some clients who were fighting with a major oil/gas pipeline company, and the company did a $#&@ job of replacing the soil and mixed sub and topsoil. Make sure this is clear as well as revegetation requirements.

PGAG said:

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This is a long shot, but thought someone on here might have some knowledge. A pipeline company is going to offer a family member on an easement through our property. The pipeline is 42" in diameter. Anyone have an idea what the going rate is for this kind of easement? Thanks in advance.

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What county are you in?

Refugio

I'll try to gather more details. It will be natural gas I believe.

Not sure. I've heard post installation issues are pretty common and you have to hold their feet to the fire

They won't offer what they will eventually agree to pay. Suggest finding you a good attorney who specializes in that. Sure, the attorney gets a cut, but you will, in the long run, come out ahead.
Understand that the pipeline and utility companies have employees that specifically get compensated off of how cheap they can get that easement for.
Remember above all else, no matter how much they tell you otherwise, they are not your friend.

Thanks for the advice! Yes, we're kind of looking around for a representative. Not sure exactly where to start with that. Do they usually take a percentage?

There is a wealth of knowledge here on the OB from folks that do this. I'm sure someone on here can get you pointed in the right direction.

Gunny456 said:

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They won't offer what they will eventually agree to pay. Suggest finding you a good attorney who specializes in that. Sure, the attorney gets a cut, but you will, in the long run, come out ahead.
Understand that the pipeline and utility companies have employees that specifically get compensated off of how cheap they can get that easement for.
Remember above all else, no matter how much they tell you otherwise, they are not your friend.

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All due respect, but I've never seen that. Not saying it NEVER happens, but I've not seen it.
I've done pipelines/powerlines etc & I get paid the same whether they pay $600 a rod or $6000. So, I never take it personally one way or the other.

Be super careful what attorney that you use/talk to. This is really more of a real estate transatction than an actual Oil & Gas deal, so consider that. If you know anyone in the industry, you can ask them to help you with the negotiations, that might save you attorney fees.

Be willing to do your own re-seeding etc etc, even if they insist on doing, they will most likely not do it to your satisfaction.

Find a fence contractor now. You are going to want your standards on the gates that they install, not theirs.

Most likely, the easement will already have language in it that makes this a single use easement, meaning they can't come along later with another pipe, but double check that. Thats a big sticking point with most landowners, so most of the Easements come with that language already. It will also have language in it holding you the landowner harmless if something happens to the workers while they are installing it.

The attorney we used had worked for the energy entity to negotiate with the landowners and he was the one that told us that.
He had a lot of inside knowledge that really helped us.
I don't think he had any reason to mislead us.
It was disconcerting as to how disingenuous the whole ordeal was.

Braun & Gresham and Brady Hamilton are two Texas firms who may be worth contacting.

Thanks! Good info

Thanks for the recommendations!

I was going to share that my old Aggie room mate spent two years fighting with a pipe line company that was going through his sizeable ranch in Waller county a couple of years back. They went right through a pecan orchard that had huge pecan trees that had been on their place for years. He settled with them finally.
I spoke with him about two weeks ago and it seems the pipeline company reported to the IRS that his income was classified as "miscellaneous income" instead of for damages or the easement and they reported that they paid him a lot more money than they actually did. Now he has to pay an attorney again to fix their mistake.
Might be aware of such if you settle.

Seems like pipelines are picking up. One was approved a couple years ago and it was coming through Brazos Co. They decided not to do it after going to all that trouble. Another one is going through right now, I've seen the trench, and I've heard a third is surveying another route.

PGAG said:

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Thanks! Good info

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Jim Spivey, Spivey & Valenciano in San Antonio.

Thanks!

Yes, very concerned about damages.

Allow bare minimum for width of ROW. They love to oversize so that they have room to run several more at zero damages money to you.

If the easement is exclusive and specifically states "a pipeline," it doesn't matter how wide it is; they're only putting one pipe in the ground.

I know from first hand experience, when a 42" line was put thru my place early last year,
If you get an atty, don't settle for less than $100/L.F.

If you do it by yourself, $75-$80/lf will be about the max offer you will get.

I went the atty route and ended up paying him 25% of the award over $30/LF
Money well spent.

However other entities in the future may try to utilize that easement as additional energy corridors. That happened in the hill country with transmission lines.
The pipeline company may stipulate that the easement is just for their one pipe… but then, because it's there, if another pipe line, optic cable, water company, transmission line company, etc wants to run a line they oftentimes will use that same route. The landowner may get compensation again but the original pipeline easement opened the door, for lack of better terms.
The PUC is creating more and more of these energy corridors.
The landowner needs to have a really knowledgeable attorney to review the specific language of what that easement wording really means in terms of expansion and use in the future both above ground and below ground use.

txags92 said:

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Insufficient data. Need to know desired easement width, area of the state, what kind of product in the line, how many lines they want the right to install, whether they will have the right to come back and add more, etc.

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this one sounds like Whitewater Traverse Pipeline

Tell your Family member to get in touch with Jim Spivey in San Antonio. He's an expert in these cases and probably the best in Texas, from what other atty's have told me. They wont' be disappointed. If they contact Jim, have them tell him the rancher down the road in San Saba County recommended him to you. He will know who I am.

I used his close friend for my atty, that is out of San Angelo to handle my property in San Saba County. They both used to work for the pipeline companies, giving them the knowledge of how they think and operate.

This Agrilife document helped us immensely, on a recent uitility sewer line we were forced to deal with.
Great points to bring up, and although all may not be applicable, or winnable, you do your best against a stacked deck.

And the author, Tiffany Dowell Lashmet, answered some emailed questions. I heard her speak at a TSCRA panel , she is sharp, and on the landowner's side. One of her quotes was "don't accept the first offer, likely not even the fifth offer, hold out as long as you can".

Texas Pipeline Easement Agreements

direct download link:
PDF

Many thanks to all. Great info. Sounds like having legal representation with someone familiar with easements is almost a must.

At the end of the day……sadly, Texas landowners just "think" they own their land.
Texas has one of the most lenient and abused eminent domain laws in the country. Efforts have been made for decades to change the eminent domain laws in Texas but the political machine in Texas never allows that to happen no matter what party controls the Texas Senate or Congress…and everyone knows why….just follow the money.
My opinion is that if a Texas landowner ends up having a pipeline or transmission line, or any other "product" moved under or over his land ….that he already pays crazy property taxes on…… that landowner should not only be compensated for the damages and change to his land….but also receive a percentage of income that the entity moving and selling the product going through his land makes for as long as they move product through his land. That only seems fair.

I like ROWs. In contract I stipulate that it should be reseeded every 3 years. In south Texas the "edge" is very beneficial for many wildlife species.

Gunny456 said:

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At the end of the day……sadly, Texas landowners just "think" they own their land.
Texas has one of the most lenient and abused eminent domain laws in the country. Efforts have been made for decades to change the eminent domain laws in Texas but the political machine in Texas never allows that to happen no matter what party controls the Texas Senate or Congress…and everyone knows why….just follow the money.
My opinion is that if a Texas landowner ends up having a pipeline or transmission line, or any other "product" moved under or over his land ….that he already pays crazy property taxes on…… that landowner should not only be compensated for the damages and change to his land….but also receive a percentage of income that the entity moving and selling the product going through his land makes for as long as they move product through his land. That only seems fair.

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If that were the case, either nothing would get built, or you'd be paying a lot more for energy.

The eminent domain process is a necessary evil. People don't realize how good we have it here until they start travelling to other states and especially overseas.

Good contract language is a must. I had the pipeline company contact me a few months ago to let me know they will be having their surveyors going back thru the properties. He wouldn't tell me why, but I have found out since then what may be going on.

I told him they can access the 50' easement all they want, as long as gates are closed, but to stay off of all other areas. He told me they still have the temporary construction easement for 2 years following construction. I told him to go back and re-read the contract they have with me and two other parties my atty represented and he will see that my atty put in language that as soon as the pipeline is laid and construction is completed on our property, the temp. construction easement expires. No 2 year period. I told him that T.C.E. expired in June of 2024.

I didn't have any problems with them after that.

Gunny456 said:

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At the end of the day……sadly, Texas landowners just "think" they own their land.
Texas has one of the most lenient and abused eminent domain laws in the country. Efforts have been made for decades to change the eminent domain laws in Texas but the political machine in Texas never allows that to happen no matter what party controls the Texas Senate or Congress…and everyone knows why….just follow the money.
My opinion is that if a Texas landowner ends up having a pipeline or transmission line, or any other "product" moved under or over his land ….that he already pays crazy property taxes on…… that landowner should not only be compensated for the damages and change to his land….but also receive a percentage of income that the entity moving and selling the product going through his land makes for as long as they move product through his land. That only seems fair.

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This (the bolded part)! This is the only fair treatment for ALL "public utilities" that transgress private property, including pipelines, power lines, and even roadways. Anytime there's a "taking" of private property for the "public good", the landowner deserves compensation for as long as the easement exists. It's a very small price to pay, and spread out over the entire using public, is negligible. Someday!

Doc Hayworth said:

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Tell your Family member to get in touch with Jim Spivey in San Antonio. He's an expert in these cases and probably the best in Texas, from what other atty's have told me. They wont' be disappointed. If they contact Jim, have them tell him the rancher down the road in San Saba County recommended him to you. He will know who I am.

I used his close friend for my atty, that is out of San Angelo to handle my property in San Saba County. They both used to work for the pipeline companies, giving them the knowledge of how they think and operate.

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Does Spivey work elsewhere like Robertson and Brazos County? Or will he refer someone to a closer attorney?

I live in Arkansas and Missouri now. They both have much more fair eminent domain laws and don't abuse its use.