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.

[hgb]

Whoops, looks like another post already asked my questions. (I'm a slow typist)

[cowman]

I would advise anyone who is looking into this to contact their surface rights group or for that matter any surface rights group? The Apache pipelines were recently negotiated by a consultant who spoke at a meeting of the Pine lake Surface rights group. Not sure of a number to call but I believe Don Dreeshan is the president. His number is (403)227-2834. He is a good guy and will be willing to help you out.
Mountain View county is in the early stages of setting up a surface rights group. The reeve was pushing it at a recent meeting so you might want to contact the county.
The power of a surface rights group is the sharing of information on these oil and gas firms and the knowledge of what they are paying and the knowledge of your rights! The only way landowners will ever get any power is to band together and share information. I believe every landowner should be an active member if they expect to deal effectively with the oil companies.
Don't rely on the EUB or for that matter the Farmers advocate...they can be helpful but they are both funded by the Alberta government and we all know who calls the shots there, right? In reality the purpose of both these organizations is to get that well drilled so the money starts flowing to the government. And that may not be in your best interest?

[cowman]

Incidently there is an application by the EUB to increase the number of coalbed methane wells allowed per quarter in a designated area of the province. Right now only 4 are allowed per section and the application is to raise it to 8 or more! Not exactly sure where they are at just yet but eventually they could apply for up to 32 wells per section! The concern here is with that many wells the resulting pipelines and setbacks would pretty well make it impossible to do any kind of developement on these lands. You want to really be careful when you agree to a surface lease with a coalbed methane outfit, because once they have one well on a section they basically own you! All the old rules went out the door with coalbed methane!
So if you ever think someday you might want to build a barn, house or whatever on your land...or even subdivide your land for future developement...you should make sure you are very well informed on your rights! The fact is the few thousand you might get today could cost you a fortune somewhere down the road!
Be especially wary of the American Coalbed companies...they are not exactly the most honest players in the game!