Gas pipeline question | TigerDroppings.com
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Crawdaddy
LSU Fan
Slidell
Member since Sep 2006
12861 posts

Gas pipeline question

Our hunting club now has a pipeline going right through it. My question is, do any of you own property that has a gas line going right through it? Does the company pay well for doing so? Is it a one time payment or a monthly/yearly payment?

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Plans to construct a $220 million pipeline that will transport gasoline and diesel from the Valero St. Charles Refinery in Norco to a pipeline hub 139 miles away in Mississippi are on track to begin this summer, company officials said last week. Kinder Morgan Energy Partners, a Houston pipeline transportation and energy storage company that has about 550 employees in Louisiana, announced last September that it would build and operate the pipeline in a joint venture with Valero Energy Corp.


View full sizeThe proposed pipeline, which is still pending approval from the state Department of Natural Resources, is slated to travel northeast from Norco, crossing Lake Pontchartrain and continuing northward into Walthall County, Miss.

The companies are seeking to build a 16-inch pipeline that will transport the fuel to a pipeline transportation hub in Collins, Miss., which Kinder Morgan operates and owns a majority stake in. From there, refined petroleum products will be transported by pipeline systems that serve major markets in the southern United States.

The pipeline, expected to be in service by 2013, will have an initial capacity of 110,000 barrels per day, with the ability to expand to more than 200,000 barrels per day. The anticipated impact in the Louisiana coastal zone, a 5.3 million-acre area that includes 40 percent of the nation's coastal wetlands, involves the excavation of about 24 acres of wetlands and uplands and 38 acres of water bottoms.

Construction costs for the pipeline are expected to reach $140 million in Louisiana, which could boost local sales tax revenue by about $3.3 million, according to estimates from Kinder Morgan. About $80 million in additional construction costs are slated for Mississippi. Overall, the project is expected to generate 1,200 temporary jobs at its peak.




LSURoss
USA Fan
Shreveport, LA
Member since Dec 2007
11542 posts

re: Gas pipeline question
quote:

Does the company pay well for doing so? Is it a one time payment or a monthly/yearly payment?


I am pretty sure you get paid monthly for pipelines.


DownshiftAndFloorIt
LSU Fan
The devil dreams on an idle horse
Member since Jan 2011
42580 posts

re: Gas pipeline question
That's probably only if you own the mineral rights or some shite like that.


LSURoss
USA Fan
Shreveport, LA
Member since Dec 2007
11542 posts

re: Gas pipeline question
quote:

That's probably only if you own the mineral rights or some shite like that.


Very True.


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Nodust
LSU Fan
Member since Aug 2010
19029 posts

re: Gas pipeline question
Got a gas pipeline by my house. Don't think the neighbors get paid monthly for it. It's been there forever so maybe rules have changed.


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TopWaterTiger
LSU Fan
Lake Charles, LA
Member since May 2006
6334 posts

re: Gas pipeline question
who ever owns the land and the mineral rights. A leasee has no right to it.


hardhead
LSU Fan
stinky bayou
Member since Jun 2009
5198 posts

re: Gas pipeline question
you will get paid according to the contract.

They are different.


BONUS: You will now have a good shooting lane.


Geaux Smoke
LSU Fan
Aspen, California
Member since Aug 2010
1977 posts

re: Gas pipeline question
you will most likely receive a one time payment based on pipe footage running through your property. assuming it's avg property. i.e. no lakes etc...
ETA: mineral right don't apply here
This post was edited on 12/5 at 8:40 am


Nodust
LSU Fan
Member since Aug 2010
19029 posts

re: Gas pipeline question
Plus they normally build some nice roads that can be used later.


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TulaneUVA
Virginia Fan
Member since Jun 2005
21279 posts
Online

re: Gas pipeline question
quote:

BONUS: You will now have a good shooting lane.


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AlxTgr
LSU Fan
Kyre Banorg
Member since Oct 2003
39508 posts
Online

re: Gas pipeline question
quote:

mineral right don't apply here


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tenfoe
Member since Jun 2011
3496 posts

re: Gas pipeline question
They buy a permanent easement for surface use. It's still your property, but the contract will spell out what you can and cannot do. The agent writing the contract will usually have a little wiggle room to provide incentives to sign such as new gates, a road, etc..


DownshiftAndFloorIt
LSU Fan
The devil dreams on an idle horse
Member since Jan 2011
42580 posts

re: Gas pipeline question
Well it was a good guess


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Nascar Fan
LSU Fan
Columbia La.
Member since Jul 2011
16004 posts

re: Gas pipeline question
They usually buy the rideaway before they start. One time payment


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Junior23
Southern Miss Fan
Member since Sep 2012
696 posts

re: Gas pipeline question
quote:

That's probably only if you own the mineral rights or some shite like that

Here in Misisppisppi if you's gots one dem thangs in yo yard den you's gon' get payed. My cousin has one running through his yard and he gets paid every so often, monthly maybe.


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braindeadboxer
LSU Fan
Utopia
Member since Nov 2011
5015 posts

re: Gas pipeline question
quote:

do any of you own property that has a gas line going right through it


Yes, through some of our crop land.

quote:

Does the company pay well for doing so


Typically

quote:

Is it a one time payment or a monthly/yearly payment?


Depends, our family gets a biannual lease payment from them and my cousin gets paid for loss of crop land for the area they can no longer farm.


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windriver
San Diego State Fan
West Monroe/San Diego
Member since Mar 2006
8656 posts

re: Gas pipeline question
quote:

you will most likely receive a one time payment based on pipe footage running through your property. assuming it's avg property. i.e. no lakes etc...
ETA: mineral right don't apply here


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F Head
LSU Fan
On a boat
Member since Dec 2008
1896 posts

re: Gas pipeline question
quote:

They buy a permanent easement for surface use. It's still your property, but the contract will spell out what you can and cannot do. The agent writing the contract will usually have a little wiggle room to provide incentives to sign such as new gates, a road, etc..


This. But in Louisiana, it's called a servitude instead of an easement.


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dawg23
Mississippi St. Fan
Baton Rouge, La
Member since Jul 2011
2147 posts

re: Gas pipeline question
quote:

They buy a permanent easement for surface use. It's still your property, but the contract will spell out what you can and cannot do. The agent writing the contract will usually have a little wiggle room to provide incentives to sign such as new gates, a road, etc..


This -- although, as was mentioned, it's technically labeled as a "servitude."

It's very unlikely that the payment will be anything other than a one time check, with the amount based on fair market value (or devaluation) of the property.

Payment is usually on a "per rod" basis (one rod = 16.5 feet). If the route across your property is 1650 feet, you'll get paid for 100 rods @ some rate (maybe $ 300-400 per rod).

They pay extra for temporary work space, surface sites, access roads, crop loss/damage, etc. Read the contract form carefully, and make the changes you (or your attorney) think are needed before signing.


ForeverLSU02
Penn Fan
Albany
Member since Jun 2007
32123 posts

re: Gas pipeline question
quote:

That's probably only if you own the mineral rights or some shite like that.
surface rights not mineral rights


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