How much per acre, should pipelines pay for crossing farmland and destroying the crop that has been planted?
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Burbert, I hope you don't have $ signs in your eyes because it's the other things that go with a pipeline that you will remember real quick after you've spent those initial dollars paying off malt inspectors in jugs. (lol) On the serious side, is this just a local oil company wanting to send their production to their battery through a 3 to 4 inch line, or are you talking large diameter provincial gasline pipe? If it's local, and you can see oilfield development coming on your property, I'd be very accommodating. It would come with a sit down at my table discussion on what the company plans were for my property with the person that makes the decisions for the company. If I like it, my conditions are: I will not grant you a pipeline easement, or allow you to register the same on my land title. You can find another category, but easement is not in my vocabulary. I recognize that pipelines are a necessary evil, but if there is nothing in it for me except this pipeline, I encourage you to go around my property. I'm looking for things that pay an annual rent, like surface leases, and above ground infrastructure. If you do come to terms with them, then plan this first line as your main pipeline corridor for future parallel pipelines that will least affect your farming, or building intentions. So what if they have to lay a few extra joints of pipe. As the crow flies doesn't cut it out here, and I've found that oil companies are very agreeable to upfront terms that are laid out, and do not change with the next project on our property. I will not allow trackhoes, and backhoes to put the line in except at road crossings, and at surface connecting locations. They destroy the land in our area, and it never comes close to being the same again. We insist on the use of a chain trencher that disturbs but a ribbon of ground, and as there are few subsurface rocks to interfer around here, those machines are quicker than hoes. Negotiate hard enough Burbert, and the graft they will give you could include those bribery jugs!!!
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To answer your questions. Local lines here are $1000.00/acre. Absolutely insist that if they come in to bury a pipeline after you've gone to the expense of putting the crop in, they have to pay up after havest based on your other harvested yields. If they won't, then tell them to come back after you harvest your field to do their pipeline work. That question, which you need to point out in your kitchen table discussion, is just another of your terms that needs to be agreed to before you sign anything. Not one of them has any problem with it, but get it down anyways in your addendum that takes presidence over anything they have as a standard pipeline agreement. Seriously, do some thinking. This is important stuff for your farm. Oil and gas companies are not like the CWB!!!!!
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south of calgary we get . value of land /acre, plus
$350-$450 for crop loss first year 75% second year,
50% 3rd though 5 years . Know your current value of
the land which traded in your area and don"t
backdown. Talk to neighbors stand together they play
one against the other and use lowest .
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Don't forget that once it has a caveat on your property it is only capable of things like farming. No trees, no buildings, permission to put any infrastructure. They don't need as many meters as they will ask for. Keep it narrow and grant (for the same price) working space to install the pipeline. The field won't last forever so discuss the protocol when it is decommissioned. I prefer removal.
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Pipelines are very slow at finishing their open trenches.When they go right across your land and split it up, they should pay at least $1500 per acre. Ground disturbed 10 year ago in gumbo- still shows a much reduced crop on the pipeline soil when we fly over it. Pipelines say not, but proof is in the stand. Producers united last year when Enbridge came through East of Regina- got substantially more than fist offer, but trench is still open - doesn't look too good.
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