Started By
Message

re: Pipeline on farmland

Posted on 12/20/22 at 6:39 pm to
Posted by TigerGyp
Lafayette
Member since May 2006
975 posts
Posted on 12/20/22 at 6:39 pm to
That’s more like it! Kinder Morgan paid $650/rod in my area, but that was 12 years ago. $1000 to $1500 sounds about right, in the present market.

I would like to see that template.
Posted by CharleyLake
Member since Oct 2006
1327 posts
Posted on 12/21/22 at 6:27 am to
Some farmers and cattlemen south of Carlyss told me that Kinder Morgan was a tough negotiator.

We have a twenty (20) year ROW agreement with a subsidiary of CITGO due to expire in 2023. Payment was $800 per rod in 2003 and is about $1475 in today's dollars. I think our market price might be in the $1600 category. We are not looking to gouge anyone either. They have been a good corporate "partner."

I will be pleased to get you that template with other non-confidential information that I can share. My family has had some expropriation proceedings that I cannot per terms of the settlements.
Posted by CharleyLake
Member since Oct 2006
1327 posts
Posted on 12/21/22 at 6:56 am to
Most of the pipeline companies that my family has agreements with have been good corporate partners. A Right-of-Way and Servitude agreement was written by attorneys for the benefit of the corporation, not the landowner. Most of their attorneys are fair and will agree to reasonable language changes.

Most of the landmen are honest people making a living and several have educated me with terms in the contracts. Many of them can read title better than lawyers. Remember that their job is to get signatures.

Eminent Domain has been extended beyond its intent to benefit only the shareholders of pipeline companies (even foreign-owned ones). I have no problem when it has to be used for the public benefit such as public highways, municipals such as parks and civic centers, hospitals, and airports. It appears that LADOTD might need some of our property for the Calcasieu Bridge replacement. I only recently became aware that the bridge will only be one component to the project.
Posted by CharleyLake
Member since Oct 2006
1327 posts
Posted on 12/22/22 at 8:09 am to
TygerGyp,

I attempted to copy the servitude template in this space but there were too many words for it to be allowed. If you provide a U.S. mailing address, I will be pleased to get it to you.
Posted by CharleyLake
Member since Oct 2006
1327 posts
Posted on 1/4/23 at 6:03 am to
Page 2

OWNER shall have the right to fully use and enjoy the above described premises, except as to the rights herein granted; and OWNER agrees, not to build, create, or construct, nor permit to be built, created, or constructed and obstruction, building, engineering works, or other structures over said SERVITUDE which would interfere with the operation of the pipeline. The SERVITUDE herein granted shall be restricted to the actual width of the pipeline as laid hereunder, except that XXX may use a 30-foot in width strip, being 15 feet on each side of the SERVITUDE, during the temporary periods when it is necessary for XXX to perform maintenance and repair work on the pipeline. After construction, XXX hereby agrees to promptly pay and damages which may arise to growing crops, pasturage, fences or buildings of OWNER for the exercise of the rights herein granted.

The SERVITUDE grant is granted and accepted subject to the following stipulations and restrictions:
1. This grant does not convey any right, title or interest whatsoever in the land or any oil, gas or minerals in, on upon, over, or under the land over which this SERVITUDE extends.
2. That each and every right herein granted is and shall be subordinate and subject to any and all pre-existing or future grants for the construction, maintenance, operation, replacement and/or repair of any roadway, utility or facility for the exploration and development of said land for said minerals and for farming and reaching operations on the surface of said land.
3. The reservations and restrictions contained in Paragraphs 1 and 2 above shall not be exercised so as to prevent the construction operation and maintenance of the SERVITUDE herein granted.
4. XXX shall at all times during the existence of this grant, and at its own cost and risk, cause the pipeline to be maintained in good order, condition and repair and in accordance with all present and future municipal, parish, state and federal laws, regulations and directives relating to the operation, construction, maintenance, repair and use of such pipeline and appliances.
5. That XXX shall forever save OWNER harmless from and indemnify OWNER against loss or damage of any kind, including costs and attorney’s fees, incident to or resulting in any way from injury to persons or damage to property or other legal consequences growing out of the maintenance, operation, use, patrol, inspection, alteration, repair and replacement of said pipeline and/or the removal thereof, whether the same be with or without XXX’s fault or negligence or that of any contractor or sub-contractor or their respective suppliers, contractors or sub-contractors, agents servants or employees or the manner or conditions under which said operations are conducted or performed or the breach of the terms, covenants, and agreements of this grant and/or all acts of commission or omission of those of its customers and licenses.
6. Nothwithstanding anything to the contrary contained in this grant, should the pipeline at any time during the term of this grant, interfere with, restrict or restrain the commercial or industrial development and use of the land on, over or upon which the same extends, upon written request of OWNER, XXX shall relocate and remove said pipeline at its sold cost, risk and expense to such other location on the before referenced land owned by OWNER as OWNER shall designate; no additional charge shall be made by OWNER for such substituted location; such relocation and removal to be made within six (6) months after receipt of such notice by XXX and the designation of the new location, or within such period of time as may be mutually agreeable to the parties.
7. Should XXX, its subsidiaries, affiliates, successors or assigns, cease to operate said pipeline for a continuous period of twelve (12) months, all the rights and SERVITIDES herein granted shall ipso factor terminate unless the cessation of use of the pipeline is caused by fire, strikes, or an act of God. It is understood and agreed by the parties hereto that operation of the pipelines consists of using them for the transportation of the main product identified in this agreement. Using the pipeline for performing routine maintenance or filling the pipelines with inert water or other substances for the purpose of maintaining the pipe shall not constitute operations. In the case of termination of the SERVITUDE under this Paragraph, XXX shall remove the pipeline and restore the above described premises to as near its former condition as is reasonably practicable within a twelve (12) month period following the date of termination.
8. XXX shall reimburse OWNER for any new or additional tax or other forced contributions of any kind whatsoever levied by any state, parish, or other governmental or municipal authority against the land due to XXX’s pipeline and appurtenances being located on land across which this grant extends.
9. Upon completion of construction of the pipeline laid hereunder, XXX agrees to restore the surface of the land to as near its original condition as is reasonably practicable within a three (3) month period following the date of termination.
10. No other pipelines may be placed in this SERVITUDE by XXX other than the single pipeline that this agreement has described.
11. The OWNER hereby executes this SERVITUDE without warranty of title and shall be held harmless in the event that any errors are made in a title search conducted by XXX or as directed by XXX of the described land.

Posted by CharleyLake
Member since Oct 2006
1327 posts
Posted on 1/4/23 at 6:07 am to
Page 3

The first term of this SERVITUDE shall be for a period of ten (10) years, provided XXX gives written notice to OWNER of its intent to exercise its option on or before MM/DD/YEAR. The mutually agreed upon consideration to the OWNER for an additional ten (10) year option term shall be $C,CCC per rod adjusted upward by the increase, if any, in the consumer price index, all U.S. items prepared by the U.S. Bureau of Labor Statistics, using as the base for the computation the average for the full year WWWW (initial year of agreement) and comparing it to the average of the 12 month period ending three months prior to the ending month of the Initial Term to determine the percentage of increase to be applied to the consideration.

Consideration for subsequent ten (10) year option periods will be determined by adjustment upward by the increase, if any, in the consumer price index, all urban consumers, prepared by the U.S. Bureau of Labor Statistics, using as a base for the computation the average consumer price index for the year 20, and comparing it with the average of the twelve (12) month period ending three months prior to the ending month of the current ten (10) year option period to determine the percentage increase to be applied to the consideration.

The index figures shall be taken from the publication of the U.S. Department of Labor, and the Department of Labor shall be the sole judge as to the comparability of successive indexes, should there be a change in the form of the consumer price index. If the Department of Labor cannot supply an index comparable to the consumer price index at the time the option is exercised, then another index representative of the changes in the purchasing power of the U.S. Dollar will be used. If either party cannot agree on a substitute method to determine the proper consideration, then the parties shall submit the same to arbitration in accordance with the now existing arbitration law of the State of Louisiana for determination of the price. But in no event will the consideration be less than that paid for the primary term. The second term of the SERVITUDE shall be for a period of ten (10) years from and after the date of expiration of the first term. Upon expiration of the first term (without XXX exercising its second term option within a reasonable period of time) or upon expiration of a properly secured second term, the SERVIOTUDE shall revert to OWNER, his successors and assigns, without the necessity of any action on the part of either of the parties hereto; provided, however, XXX is hereby granted the right and option at any time until one (1) year after the expiration of said SERVITUDE to remove the pipeline which XXX may have placed thereon or thereunder. All above ground structures and material shall be removed by XXX from the above described premises with the one (1) year expiration period. In any event, XXX shall restore the above described premises to as near its former condition as is reasonably practicable.

The rights herein granted may not be assigned in whole or in part unless prior approval has been granted to XXX by the OWNER which approval shall not be arbitrarily withheld. Upon the assignment or transfer of the SERVITUDE, any of XXX’s liabilities for this SERVITUDE will remain with XXX unless specifically set out in an assignment or transfer agreement and accepted by the party receiving the assignment or transfer of the SERVITUDE.

The terms and conditions and provisions of this contract shall extend to and be binding upon the heirs, executors, administrators, personal representatives, successors and assign of the parties hereto.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures in the place and on the date and in the presence of the witnesses hereinafter indicated.

Executed on behalf of XXX, herein represented by _______________________________ on the ___ day of _______________.

WITNESSES: GRANTEE:

XXX
By: ___________________________________

_______________________________
Signature


_______________________________ _______________________________
Printed Name Signature

__________________________
Printed Name
Title: __________________________

_______________________________
Signature


_______________________________
Printed Name

ACKNOWLEDGEMENT

STATE OF _______________________
COUNTRY/PARISH OF______________

This instrument was acknowledged before me on this ______ day of __month_______, __year__ by ________________________________.

______________________________
Notary Public

My Commission Expires:
___________________

first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram