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OT company to lay pipeline and pay $10 a rod. low?

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mmidlam

07-12-2007 10:08:03




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a gas company wants to cross my property. they want to pay $10 a rod. yes,they still measure in rods. what is the going rate in your area? In the future, would it would cause problems for putting in tile. what other problrms might it cause?




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hd6gtom

07-17-2007 09:09:42




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
Make sure you know exactly where they are going to put the line. The scoundrals moved the line on me, claimed their right of way not defined in the contract, so they could move it anywhere they wanted. Naturally they chose an easy route across land they weren't supposed to be on.



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Jimmy King

07-13-2007 09:19:42




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
We received $10 a rod 30 years ago for a power line.



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Nolan

07-13-2007 04:21:40




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
Going through this right now on our place over a waterline.

NEGOTIATE YOUR TAIL OFF!

Trying to simply block this probably won't work. But you don't have to accept the language of the proposed easement as initially written. You can legally and rightly counter offer an easement to them.

Biggest problems for you with most easement language is the restrictions is places on you regarding what you can do with the land. Most easements contain language saying they can remove anything and everything from the easement land and come onto it whenever they feel like it, and it prohibits you from doing anything with the land. So, no fences, no crops, to buildings or shrubs, etc.

Second biggest problem is what it does to subterrain water flows and surface erosion problems. All of which you are usually financially liable for.

But you don't have to accept their language, you can write your own.

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Davis In SC

07-12-2007 21:23:26




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
Do you really have any choice, will they claim emminent domain, if you refuse? One of the big Transcon lines runs right by the corner of some land I own, and crosses my Aunt's land. When she had some timber cut, the Pipeline made the loggers build a 4 ft tall hump, to cross over the line..

They do keep tight security on the ROW. Some guys here were doing some work, and parked a truck near the ROW, a few hours later, Security showed up to see why the truck was parked there..They had seen the truck on a satellite image.. No real problem, they just checked to see why it was there..

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John A.

07-12-2007 21:16:19




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
mmidlam, I agree with the others, Wayyyy to low for a lease anyway think on this..... ...
Also remember if you do come to terms on the lease,,,, Do Not Forget About Damages. They are going to ditch a trench across your place. If you have little to no surface rocks make them Remove all they bring up! On field ground the area will be so compacted you will loose production by some percentage. For at least 2 yrs, if not longer. Cost of extra tillage trips to get it back in shape. If your farming practice is Min/No till then you have a bare strip across your property that is susepitable to erosion that will have to be addressed too!
ROCKS yes rocks will surface and those MUST be removed all the way down to golf ball size.
Settling will occure for a long time unless they are willing to water pack you ditch, which I assure you they will not. So soil will need to be brought in to level up the ditch line, especially on grassland! in 2 to 3 yrs after ya'll get some big rains to settle the ditch.
They will need to reestablish your pasture cover.
in the ditch line. Make them responsible to haul water to keep it wet so it can get established. A time limit on the initial construction process, And any time in the future they come on your place for inspections or whatever. Adopt a "No Ruts Policy" for your place. It will make them think twice about Bottle-assing-off-accross your place! for if they mess it up they have to fix it. Even years down the pike!
If the installation crew makes ruts and mess up land outside of the ditch easement, that land will incur a bill from you, at a predetermined precentage or say 5 times the rate of the land in the easement! Hope this helps.
Later,
John A.

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TomTex

07-12-2007 21:01:06




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
They pay about 10 - 15 dollars per foot here. AT your rate, it is not a good deal at all. Around here if you fight them they just get the county judge, that they have already bought and paid for, to rule against you. The energy people have paid off all our local officials, including our county commissioners. You as a land owner / farmer cannot get a fair shake. Tom



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David - OR

07-12-2007 17:54:36




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
The worst part of this is that you won't ever be able to put a building over the gas line. They probably also have a "keep away" region of some width along the line. This would greatly complicate any potential future efforts to subdivide and sell off any of the land.

If we allow a 50 foot wide "keep out" zone along the pipeline, then at $10 per rod, that's 16.5 x 50 = 825 square feet of land you substantially "give up" in return for $10.

Putting it another way, they're paying you about $525 per acre, and you have to give up all uses of the land other than crop farming. That seems considerably below the going selling price for land almost everywhere.

I think their offer is at least 10x too low.

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Bill in Colo

07-12-2007 16:33:30




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
Had 24" cross our ranch a year ago settled for about for about 5.00 per ft . It was a FERC regulated line. Get everything up front on paper as nothing can be changed. will be negoticating for a gathering system in the next couple of weeks it will be much less as we own a large portion of the gas. Also am negoticating for a ngl line to parallel the first line going to start it at about 10.00 per ft. Email is open

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JTinNJ

07-12-2007 15:14:51




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
Tell the gas company they can put it in for free.Then they can pay you royaltys. Make it high like $5.00 a barrel for every barrel pumped though the pipeline.With incresses every year.For the life of the pipeline.When they hear that you will not be dealing with them for long.



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havvey

07-12-2007 14:56:48




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
run!! not worth it at all. exception would be if its usless or waste land.



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mjbrown

07-12-2007 14:51:51




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
It will surely cause problems putting in tile and probably screw up existing tile. If they put it in deep enough and you are allowed to farm over it, it may not be too troublesome.



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John E. A

07-12-2007 14:15:52




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
Be careful. A pipeline went through here in Nothern Ill. Put the legel add so small you couldn't read it and had the hearings in N.Y. city. Condemed the land and basicly stole it.



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Chad Franke

07-12-2007 13:18:32




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
Also put in the contract that only that line is allowed on the easement. That will prevent a fiber optic from going in 2 feet above the pipeline, and an electric line over it. Also try to put in that it is a 20 year easement (or some time frame). Don't leave it open ended if you can help it at all.



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Coloken

07-12-2007 13:11:00




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
How big, and do they retain a right of way to drive a long it?

I got over 2 dollars a foot. but that was for a 36 inch burried. I think they got a easment for so many feet wide at 1000 per acre.



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glennster

07-12-2007 11:17:39




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
if it were me, personally, i'd tell them to go else where. problem with easements and big companys, once they are in, you are pretty much stuck. neighbor had a power company put powerlines thru his farm. then they added a second line, then an oil pipline went thru, all because of the easement. "for the good of the people". i wont buy a farm that has any underground or overhead easements. if you need to run tile, you have to locate the line before you dig. wouldnt want to hit that with a backhoe. if you ever want to sell your property, the easement is a disadvantage price wise for the seller.

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John (MO)

07-12-2007 10:43:08




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to mmidlam, 07-12-2007 10:08:03  
A tad low I'd say. $40. to $50. a rod plus crop damage every time they come back would be more realistic. Also they should be required to remove the line and repair all damage from doing so if the line is unused for a period of 2 years or more. It ain`t a get rich quick deal for you, but they need to be fair and take care of business. Get it all recorded in the easment along with penalties for not following through.

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dan hill

07-12-2007 15:40:40




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 Re: OT company to lay pipeline and pay $10 a rod. low? in reply to John (MO), 07-12-2007 10:43:08  
Talk with a lawyer on this...



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