Projected Pipeline

[Jlblake]

Hello All -

I have a very unusual situation. I signed a contract to purchase 66 acres out in the country, north of Houston, Texas. The day after we signed the contract, the current owner was notified that the Permian Global Access Pipeline is or may be impacting the land. I am within my option period so I can completely back out, renegotiate or pay the agreed upon price. There is so much uncertainty and I want to make sure I am fair. I want the land but only if it will be quiet after construction. At this point, I'm not 100% certain that the property will be impacted. If it is impacted, it could just have a buried pipeline running through it...the pipeline company would pay for the easement.

I want the property but I have no way of knowing what a fair price is now. If the property ends up with a compression station nearby, the noise could ruin my intent for the land. I would lose money selling and I wouldn't want to be there if it isn't peaceful and quiet. Most of the little research I've found has more to do with the easement than the purchase price. What I did find that relates (and isn't written by and O&G company) indicates 5% to 40% decline in value depending on the situation...some research indicates 10-20%. I have revised my offer by reducing it by 15%. I would be open to paying that 15% in 5 years after the pipeline is completed if there is no impact.

It may not be a big deal but it could be a nightmare. Just dealing with it takes away from my enjoyment. If it goes bad, no amount of savings would be worth it. If it goes smooth, I'd be happy paying the contracted amount.

Have any of you dealt with something like this before? Any input?

Thanks!

 

[Diggin It]

I'd be concerned about the path. Across a corner? Or down the middle? How close to any potential future building sites?

 

[TheMan419]

I would talk with the current owner/seller. See if they will hold off on selling to you until you know what the deal is from the pipeline company. Letting them know, of course, there are scenarios that would cause you to back out completely.

If there are possible scenarios that would make you NOT buy the property I do not see how you go forward with the purchase until such time as you know what the pipeline company is going to do.

 

[Jlblake]

That is my problem. I have no idea where it will go or what the impact would be. There is no way the property is worth the same price given the uncertainty. I just don't know how much less it is worth.

 

[bigtiller]

my google said it is a 42 inch natural gas line.
That could be as high as 1500 psi.

I would want to know more about it also, before I lost the option to back out.

 

[Jlblake]

I may have to back out. The pipeline won't be built until 2024. Surveys won't be done until March 2020. The sellers are retirees wanting to move near family. I lowered my price by 15%. At that price, I'm willing to take the risk...that could work out in my favor or it could work out badly. I can't find any information that is very helpful unfortunately. It's just a weird situation. I do not want to take advantage of these folks but I'm going to have to deal with the whole process and even if it's the best possible outcome, it's a hassle. If it's the worst outcome, I'm stuck and out of a lot of money.

 

[Jlblake]

I called the pipeline company and they were very non-committal. I'm glad I found out now at least.

 

[hawkeye08]

If the price is right, then it might be worth the risk, you can always sell it if the impact is more than you want.

 

[Jlblake]

If the price is right, then it might be worth the risk, you can always sell it if the impact is more than you want.

That is the whole question. What is the right price?

 

[Diggin It]

Curious as to how you selected a tractor site for this question.

 

[bigtiller]

Rural Living

 

[Jlblake]

Curious as to how you selected a tractor site for this question.

Internet searches for pipelines and found that similar discussions have taken place in these forums. Also, rural land. I can't be the only one that's faced this issue. Figured I could find someone that is familiar on the site. Plus, whether I buy this parcel or another, I'll have plenty of tractor questions. This parcel has a Deere 2030 in the package...that's an old tractor I know nothing about.

 

[TractorGuy]

Personally I would just walk away. No reason I can think of to buy a property that will have a pipeline on or near.

 

[hosspuller]

You know the general directions of the pipeline. N or S … East or West. Figure the worse case … path is through the middle of parcel. What is the effect on your use ? As for the compressor station .. That "depends" I live 1/2 mile from a LNG plant. On a clear night I can hear the machinery. During the day... nada. Trees and terrain make a big difference.

 

[Jlblake]

Personally I would just walk away. No reason I can think of to buy a property that will have a pipeline on or near.

I live in Texas. There is no getting away from pipelines unfortunately.

 

[Jlblake]

You know the general directions of the pipeline. N or S … East or West. Figure the worse case … path is through the middle of parcel. What is the effect on your use ? As for the compressor station .. That "depends" I live 1/2 mile from a LNG plant. On a clear night I can hear the machinery. During the day... nada. Trees and terrain make a big difference.

That's good to know about the noise. That's one of my biggest concerns. At this point, I don't really know anything about how it could impact the land. In general, the pipeline is running east to west but it could turn on any given property. I doubt the pipeline will impact my use since it's recreational property...as long as there is no accident. I am just concerned about the hassle, the potential noise and the potential impact on resale value. Peaceful land is most important to me. I live in a busy community and I want a getaway. That could be ruined by this pipeline or there may not be any issue. I just don't know.

 

[2LaneCruzer]

There will be building restrictions on a pipeline that large; don't know how severe, but I'm betting that you wouldn't be able to build anything within a quarter mile of it. Also, you would need to see the easement document to tell what they are wanting. Just laying a pipeline is one thing, if all the surface rights remain with you; if they build maintenance roads, compressor stations, etc. that is another. Also, they will move a lot of dirt, trees, etc. You would have to nail them down on restoration, environmental compliance, whether or not the easement is for the placement of the pipeline only; would it allow inspection? Maintenance? Could they sell, lease or share the lease with other companies for other purposes?

My daughter and her husband have a 9 acre tract that had a pipeline laid on it recently; I think they got over $10,000 for the easement. If I were you, I would consult a real estate attorney who has experience in this area. If you are going to run some cattle and build a pond is one thing; if you want to build a home, or several homes, I certainly would consult a lawyer.

 

[Deere Dude]

I would hate to have another 10 year long headache in my life. It could be a nagging life long problem for you.

 

[Industrial Toys]

How close is it supposed to be to any buildings? How are properties with similar underground lines valued in the marketplace?

 

[radios1]

the pipeline company would have to buy an easment to lay a pipe on your land, just don't allow an easement!!..