Pipeline Annual Rental

[gvpoff]

I am looking for any situations where an annual rental is being paid on a pipeline. I noticed "cowman" made the comment "Nova does on some land and recently Apache has had to pay annual rent on some land". We are situated in Central Alberta.

[farmers_son]

There may be some new requirements for annual rental on pipeline rightofways, but the older agreements in my area certainly didn't provide for annual rental.
In my opinion there should be an annual fee, as the land is tied up from many activities.

[whiteface]

I'm interested too in annual rental, although it won't be a dealbreaker for me. Apache made me a decent offer on a per acre basis that would be more than I would recieve if I sold them the land and I don't have to pay any "subdivision" fees. I suppose I would have liked more but it's a decent offer and as far as the land being "tied up" I don't really see it, they will return it to the way it was after the line is buried so I will still be able to "use it" even after I "sell it." I'm trying to get the line put between the cropland and the "white golf course sand" on my place but won't be too picky, so far they've been easy to work with and seem to be very willing to compensate for any inconvinience. I'm open to any experiences or suggestions and thanks for the ones already given! Have a good day guys!

[whiteface]

if the company is reasonable, I would do everything in my power to ensure that the line went where it would have the least negative impact on my farming operation. Pipelines settle with time, weeds grow on rightofways, and sometimes the most agreeable company may have a change of attitude when faced with fixing things after the fact.
It took me two years of hounding one company to get them to address an issue with a pipeline settling. It had made a huge hole right where I drove across it to get out to pastures, and of course it turned into a nice mini dugout whenever it rained.

I am currently dealing with the fourth company since the initial pipeline was installed. Companies change hands like most people change their socks.

[whiteface]

That's an interesting point, emerald and one I wouldn't have thought of, I really appreciate exactly that kind of "real life" experiences with the pitfalls of pipelines. Will definatly help in finalizing the agreement. Thanks. Have a good day!

[Horse]

To the best of my knoledge the only annual rent is if they have an above ground fixture such as a riser or valve.

[gvpoff]

I should elaborate: We presently have a Nova pipeline for which we are receiving an annual rental. Basically they have put a second one right beside it, but don't want to pay an annual rental on the second one. We are going to arbitration in April. I know they don't like to pay annual rent any more - in fact I think they would like to buy out of the existing one. But, our argument is that they have set a precedent with the first one. I hoping to find another company that is paying annual rental, which would help our argument. Which is why I picked up on "cowman's" comment that Apache has had to pay annual rent on some land.

[les]

I have four nova pipelines going across my place. They are side by side and I get paid rent annually on each line.

[gvpoff]

Thanks Les,
This is exactly the type of information we are looking for. Would you be willing to give us your name & location, so that we could use it in our argument? If so, I can give you our email address, so that we may connect personally.

[hgb]

Les, In what area of the province are you in? What time frame have these pipelines been negotiated?If any have been more recent(last 5-6 years)it would be very beneficial for the case going to arbitration in early April.
I am not involved in this case but know the issues and most of people that are. They need support and information to justify their cause.