Pipeline right of ways

[grassmarketeer]

I have heard that in the U.S. there are places where an annual rental is paid to ensure access to company lines. Does anyone know if that is true? Maybe it's not to far out of line since by signing up your giving them access forever across your lands.

[ALLFARMER]

Landowners in the USA do get annual rent for pipelines on/one their land, But this is Alberta and you will never see a pipeline rental chq. If you try to demand it they will take you to the surface rights board and get a right of entry order. They quite simply are not about to start paying rental on pipelines because soon every landowner would demand it and it would cost the oil company to much money....right. From Labour Safety Legislation, Environmental protection, to Land Access & Compensation Oil is King in Alberta and Ralph is their yes man.

[oxbow]

My Dad has 7 pipelines running across his place in Kansas. He gets paid some compensation to put in pipelines, and once they are in, he gets damages if they need to drive down their right of way or have to dig up something. no lease payments.

[cowman]

Actually NOVA pays a yearly rent on some of their newer lines. The real reason why a rent should be paid on a pipeline is the fact that the company has a caveat on the pipeline. The fact is that land is tied up if you ever want to develop it or subdivide. Ever tried getting a caveat taken off even if the pipeline isn't being used? Expensive and slow!

[blackjack]

cowman... what should an oil company pay for damages after a pipeline has went through a hay field in west central Alta... the land agent said he would be back after the job to settle up... they finished the job the end of June ... does the agent come back or do I need to track him down...thanks for the reply...

[les]

blackjack... they will show up sooner or later on thier own, but sometimes it dont hurt to call em and speed things up.

[hgb]

Like cowman says Nova pays a yearly rent on some pipe lines but recently they have been trying to buy them out with a lump sum payment. No doubt they feel a buy out is the cheaper way to go,and if they could buy them all out it would put a lid on that situation for all oil companies. So anyone being offered a buy out stand firm and don't take the buy out you be a head in the long run.

[les]

havent heard of any transcanda buyout offers yet. I have 4 of thier pipelines crossing my place.As far as accepting a buy out it would depend on a few things like how much they are offering.If you are thinking of retiring and they offer a nice sum of money it might be a good idea to take it.Or if you had a use for a large sum of money all at once it might be worth a look.

[cowman]

Blackjack: Like Les said the company will be around, but it never hurts to give them a call.
They usually work these things out on a three year basis. I believe it is on a percentage deal? So the first year you would get like 75%-100% damage, the 2nd. probably 50% and the third probably 25%. The landman will pay you for three years up front.
I would ask for $400/acre. You might not get that but it never hurts to ask right? I'd also ask for some money for weed control and general nuisance.

[grassmarketeer]

I suggest that neighbors sit down together and plan how much they are seeking in damages. This makes it incredibly easy for the landman. I also suggest that they aim higher than the numbers suggested by cowman by a considerable amount.
How would I go about demanding an annual rent on all new lines? I think there has to be a way, especially if they are to pipeline across my home 1/4.
I think utilities should also pay a small amount too. I came home the other week and three teenagers walked out of my windbreak. They were working for the local gas company. If we are allowing access across our lands at any time without notification is it right that they do not pay annuals? Some of these pipelines are getting to be nearly 30 years old. The compensation paid should be annually paid as the risk associated with older lines is increasing and that area will never be able to be developed and hinders future land use.

[oxbow]

one construction stipulationmy Dad always demands is the top 18" ofdirt is piled on one side and the deep dirt on the other. then the deep dirt is replaced first.