re: Pipeline on farmland

If you can confirm that they are an Expropriating Authority under Eminent Domain you will want to learn about the pre-requisites that help landowners such as we are before they mention the subject.

Review (Google) LA Revised Statues (R.S 19: and R.S. 19:2)

I am not an attorney but they are not too difficult to understand.

If the product in the pipe is intended for LNG facilities to be exported it seems to be FERC related which will issue a "Certificate of Public Carrier and Necessity."

Upon my understanding the pipeline company must receive permission from the state government or FERC to survey the property.

A landman might infer that survey permission was granted in the filings with FERC.

"No response" to a survey could be characterized as acceptance rather than opposition.

Pipeline companies usually do not like to initiate expropriation proceedings since proceedings can be a public relations nightmare that can be avoided as well as the reasons that you mentioned. Usually an agreement is made before the process is initiated.

Texas is beginning to recognize the abuses of eminent domain much quicker than other states. A good read is a recent Texas Supreme Court Decision-Hlavinka vs. HSE Pipeline.

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.

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.

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.

ROW AGREEMENTS SHOULD INCLUDE THE FOLLOWING:
1. Easement size-permanent and temporary.
2. Size (diameter) of the pipe.
3. Product identification-limit product use. “any other products”
4. Restriction to a single pipeline
5. Prevention of grantee for placing other pipelines in the right-of-way. (easement area)
6. Price per rod should be stated.
7. Include a legal description and plat of the easement.
8. Restrictions of the surface facility.
9. Access to easement area.
10. Construction damages.
11. Indemnification of owners.
12. Definition of what constitutes abandonment.
13. Is there a secrecy agreement?
14. Assessment/transfer language-“Run with the land” is OK but not random transfer without liability.
15. Title warranty-if a pipeline company makes a mistake in the title search, the owner should not suffer.
16. Termination provisions (renewable terms) are desired.

Obviously not the Servitude Template but ROW agreement terms to consider. In my haste I think that I put it into cyberspace. I will be out of pocket for the holidays but I will recover it and get other helpful information to you after I return. Merry Christmas. CL

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.

Even if not FERC regulated, they still have to comply with NEPA, and typically the US Army Corps is the lead agency if impact any wetlands or waterbodies. The Corps will coordinate with USFWS and the State Historic Preservation Officer before issuing a permit.

If they haven’t asked for survey access yet, then they are still in the routing stages of the project trying to determine who to cross. Talk to your neighbors regularly because they may move to the other side of your fence if it’s possible and then you are still dealing with construction but not getting anything.

A few other things, they can always make minor adjustments to avoid hitting things or to avoid bisecting a field, and they shouldn’t need anything more than a 50 foot permanent right-of-way for maintenance. Anything more than that needed for construction should be temporary workspace. If you can, specify that if the use changes the ROW must be renegotiated, and that if it sits idle for a certain amount of time it’s is considered abandoned and then specify whether they can abandon in place or if they need to remove it.