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Natural Gas Pipeline question

Posted on 6/7/11 at 9:17 pm
Posted by snatchola
Baton Rouge
Member since Nov 2007
1145 posts
Posted on 6/7/11 at 9:17 pm
I'm hoping someone can help. Me and my two siblings inherited some land in St. Martin Parish when my dad passed away in 2008. We have never seen the land and am unfamiliar with how much land we actually own. As long as I can remember, my dad (and now us) have leased the land for sugar cane to the LA sugar cane cooperative. We get some very low checks ($25ish) from them monthly. We are working on finding out how much land we have.

I got a call yesterday from a guy representing ANR Pipeline company which deals with natural gas. Apparently they already have a pipeline running across our land. They want us to sign a "temporary workspace & access agreement" to allow them to change out the old pipe with a newer/stronger pipe. They are offering us each $100. What should we do? Obviously, $100 is nothing. Should we be getting more money or should we just sign and allow them access.

Also, is it likely that there is natural gas on our property as well? We got a call a year ago from someone inquiring about testing, but never heard anymore.

Thanks in advance.
Posted by C
Houston
Member since Dec 2007
27816 posts
Posted on 6/7/11 at 9:40 pm to
It depends on how much land you own. If you don't own much, be prepared for them to head down the road to your neighbor with the same deal. I wouldn't get to greedy if they are just using your road for minor access. Obviously much more should be paid if they are doing any earth works or damaging your roads.
Posted by GumboPot
Member since Mar 2009
118660 posts
Posted on 6/7/11 at 9:56 pm to
quote:

They want us to sign a "temporary workspace & access agreement" to allow them to change out the old pipe with a newer/stronger pipe. They are offering us each $100. What should we do? Obviously, $100 is nothing. Should we be getting more money or should we just sign and allow them access.


First check their right-of-way easement across your property, read it and understand it. This will outline your rights and theirs and you will better understand your negotiating postion. $100 is quite low for south LA. I would counter with $300 access and $300 per rod (16.5 linear feet) for temporary workspace (TWS). I wouldn't go much lower per rod. They may threaten to condem you however this is the last thing ANR want's to go through.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72478 posts
Posted on 6/8/11 at 11:40 am to
quote:

First check their right-of-way easement across your property, read it and understand it. This will outline your rights and theirs and you will better understand your negotiating postion. $100 is quite low for south LA. I would counter with $300 access and $300 per rod (16.5 linear feet) for temporary workspace (TWS). I wouldn't go much lower per rod. They may threaten to condem you however this is the last thing ANR want's to go through.


correct. i just went through this with my property in south texas. Enterprise ran a pipeline through it. they claimed imminent domain on others who would not settle for their meager offer. i played hardball and counter-offered. and one day after the court date they decided to give me my counter-offer of 3 TIMES what they originally offered for the right of way.
Posted by GumboPot
Member since Mar 2009
118660 posts
Posted on 6/8/11 at 4:14 pm to
quote:

i played hardball and counter-offered. and one day after the court date they decided to give me my counter-offer of 3 TIMES what they originally offered for the right of way.


You do have to be careful and not demand too much per rod over market. To determine the current market per rod in your area talk to neighbors and local land men. If the pipeline company (interstate pipeline companies only) takes you though the imminent domain process your going to only get market value for their easement. I've been on the pipeline company's side durning a condemnation process were a land owners was asking $60K and we were offering $34K. He refused the $34K and we took him to court. In the end he walked away with $12.5 and our cost was ~$45k ($12.5 + legal fees).
This post was edited on 6/8/11 at 4:47 pm
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