I don't plan to build any additional buildings but a future buyer might. The problem is really separate from the issue of an underground line. It's the uncertainty. I don't know if it will just be an underground line or what will happen. If I knew it was just an underground pipe, I would only have to worry about the easement maintenance and the accident risk. There is more to worry about when you don't know if there will even be an impact.
Projected Pipeline
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I don't plan to build any additional buildings but a future buyer might. The problem is really separate from the issue of an underground line. It's the uncertainty. I don't know if it will just be an underground line or what will happen. If I knew it was just an underground pipe, I would only have to worry about the easement maintenance and the accident risk. There is more to worry about when you don't know if there will even be an impact.
RickB
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That 66 acres might be a prime location for a compression station. It could be a nice windfall for you.
Diggin It
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^^ I've been kicking around the idea of OP buying it as an investment for just that kind of possibility.
RNeumann
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We have a major pipeline near us that feeds natural gas or propane between Canada to the West Coast. They did their testing a year or so ago which did require some construction for a few weeks. Beyond that they keep almost all vegetation out except grass. Roads etc are OK over the top of it.
It’s up to you obviously. Some things to consider- No structures on or near the line, no trees or shrubs on or near the line. And I assume some folks would be in and out about 1-2x a year with more testing every 5-10 years.
If I went through with the deal to buy the property I’d be inclined to lease the rights rather than sell the rights. That seems to work out best.....if it’s possible. Or at least clearly define the easement. A family friend has high voltage power lines on his property. One day he saw a crew installing a cell tower on the power line. The easement was for power only- he informed the cell company “nice try”. He makes some good pocket change from the cell company- they are on a lease with him.
It’s up to you obviously. Some things to consider- No structures on or near the line, no trees or shrubs on or near the line. And I assume some folks would be in and out about 1-2x a year with more testing every 5-10 years.
If I went through with the deal to buy the property I’d be inclined to lease the rights rather than sell the rights. That seems to work out best.....if it’s possible. Or at least clearly define the easement. A family friend has high voltage power lines on his property. One day he saw a crew installing a cell tower on the power line. The easement was for power only- he informed the cell company “nice try”. He makes some good pocket change from the cell company- they are on a lease with him.
Vaquero
Silver Member
Makes for a nice shooting range. Clearcut is already done for you. Nice access from one side of the place to the other. The high voltage line across our place had been there since the 1940s. No defined easement. The utility upgraded it 2 years ago. I negotiated a pretty decent package (knowing full well that they were coming through wether I liked it or not).
They paid for 7 acres of easement at a price that would have bought over 50 acres free and clear.
Serendipity kinda thing. All I lost was some trees.
They paid for 7 acres of easement at a price that would have bought over 50 acres free and clear.
Serendipity kinda thing. All I lost was some trees.
I suspect this is a more likely outcome. I just don't know and that worries me. I have no problem with the underground pipeline alone. I just don't know if that's all I'll get. I actually feel really bad for the sellers but I don't want to pay too much for that. Just trying to figure out what the uncertainty premium is or should be.
RickB
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Probably, but location is key. I knew a woman who sold 5 acres in Putnam County NY in 1987 to a pipeline for a compression station. She did a land swap deal for two upstate NY farms totaling nearly 800 acres and did not offset the total sale price of the 5 acres.
Ken
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If you piurchased for a home or just investment property. the right of way may be 16 -32 feet wide and you will have given up being able to do no more than graze cattle . also there will bwe vehiclwe traffic like a country road forever.
The Non committal attidude shows they don't want to be good leaser of you land.
Industrial Toys
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Beats, an expressway, high tension corridor or wind turbines any day of the week.
txdon
Super Star Member
I just finished negotiating a pipeline agreement for my mom's property. 110 miles from Houston. The pipeline people will make several offers do not take the first one. The working area will be double the width of the right way. You will loose all trees and roads must cross the pipeline perpendicular. No ponds or buildings can be built on the right of way. Airplanes will monitor the pipeline - one caught me pulling up an old fence post and within an hour a pipeline representative was questioning me to make sure I was not putting a fence post in the ground near the pipeline. If you buy the land make sure you get paid the price of the devaluation of your land - of course they can just take it if you are unreasonable and pay you what they want.
txdon
Super Star Member
The pipeline went by my Mom's tractor shed about 50' away. All the details are spelled out in the ROW agreement. You can also add to the agreement BEFORE YOU SIGN. Lawyers will charge you a lot but there are only a handful of additions you should seriously consider adding to the ROW agreement. Here is your checklist:
http://agrilifecdn.tamu.edu/texasag...s-Pipeline-Easement-Negotiation-Checklist.pdf
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We bought 9 acres that happened to have two different pipelines crossing it near one corner. No compressor stations nearby so noise in not an issue. The right of ways do have to be kept clear, but the pipeline companies do that. I keep them clear so that they do not mess with me too much. In my 25* years here there was once then found a suspected weak spot. They brought in the equipment and repaired it. They pretty much put it back the way they found things so that was not an issue. The property in question is mainly woods not a fine trimmed lawn.
The upside to the pipeline is that the easement required them to provide a natural gas tap for my use. I had to pay for the tap and I pay for the gas used, but I am out in the country and I am free of LP. The funny thing is that since these farm taps are generally in field that could be planted in corn they have to have markers. They put a tall bright yellow marker on them so the combines won't hit them. They wanted to mark mine also but for years I was able to convince them that it was not needed as my tap is in an area that is never planted and I have grass around it. Last year the company changed hands and now I have a marker. Life goes on.
Doug in SW IA
The upside to the pipeline is that the easement required them to provide a natural gas tap for my use. I had to pay for the tap and I pay for the gas used, but I am out in the country and I am free of LP. The funny thing is that since these farm taps are generally in field that could be planted in corn they have to have markers. They put a tall bright yellow marker on them so the combines won't hit them. They wanted to mark mine also but for years I was able to convince them that it was not needed as my tap is in an area that is never planted and I have grass around it. Last year the company changed hands and now I have a marker. Life goes on.
Doug in SW IA
ruffdog
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What are they planning to pump through this pipeline? There is a NG pipeline in the field behind me and it has been uneventful. Oil would be a whole different story as people are finding out where there are spills/leaks. At what price? For me, the land is only worth what the company will pay over a 5 year time. If needed later, more pipes will be laid parallel to the first one and people can't stop it. Demand insurances for spill clean-up...in writing. Search Enbridge in MN, WI, and MI
radios1
Elite Member
NO, that would be theft, and Unconstitutional. a pipeline company don't have the right to steal, or even use your property unless an easment was given for it by the owner!.. even a government agency cannot steal property without just compensation, and it has to be for public use.. the constitution says so..
txdon
Super Star Member
They can pay what they want with their justification. The state of Texas has given them the right of eminent domain. As I said correctly they will pay you what they want. They can take a strip out - several thousand feet long and 30' wide - figure how many acres and give you the going rate per acre (if you were selling) for the ROW with no ending date. You have to try to get more from them because the ROW has now decreased the total value of all your attached acres. Just the plan of a pipeline the OP wants to devalue the entire land by 15%, and probably correctly so. If he can do that and then negotiate the 15% back on the ROW, plus the actual sales value of acres the ROW takes up, he would be making money.
You need to add an ending date before signing usually when the pipeline is abandoned. Also define abandoned. And add that they are responsible for removal of the line and all accidental spills. You also need to add that the ROW is for one line only or they will sell their ROW and another pipeline can be added without any compensation given to you.
We did have one landowner who wanted more than what the pipeline wanted to offer and went to court with a jury and won. But it was a short lived victory because the judge turned it around. He did end up getting a bit more than the going rate but the lawyer's fee had to be paid out of that.
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ruffdog
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^^^^......and, figure in the cost of a good attorney into the cost of the property or easement.
ArlyA
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Pipe lines run pretty much everywhere. They are pretty darn safe (not perfect) and the company has to take care of them. We all drive things that flows in them. I worked on them for years so of course I'm in favor of them.
