5 Things to Know About Oil & Gas Pipelines

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5 Things to Know About Oil & Gas Pipelines

nicolefoote • Aug 17, 2016

As a landowner in an area where there is oil and gas production, one of the things you may be approached with is a company asking to run a pipeline across your property. This can be a major concern if you have surface operations.

A pipeline for the distribution of natural gas

Here are 5 things to consider when a company asks for a pipeline right of way or easement across your property.

Talk to Your Attorney

As a general rule do not sign anything given to you by the company without having an attorney review it. Your first visit with an oil & gas attorney should always be before and not after you have signed a document presented to you by an oil company. This may seem basic. However, a landowner must understand that documents produced by the oil company are drafted heavily in favor of that company.

Does the company have eminent domain power?

A company without the power of eminent domain will probably be more willing to negotiate with the landowner because they do not have the ability to force the right of way through eminent domain.

Is it a blanket easement?

Easement agreements provided by the company normally provide for laying pipeline using language such as “over and across” the property. This gives the company the option to place the pipeline almost anywhere on the property. If you have surface operations strategic placement of the pipeline is key to not interfering with those operations. Have the company survey and propose a route for their pipeline. Also, consider requesting the pipeline be set back a certain distance from key structures or buildings where a pipeline might interfere.

What unit of measurement is compensation being based on?

Companies typically offer compensation on a “per rod” basis. A rod is 16.5 feet. Using square feet is fairer to the landowner because it accounts for the entire area that is used by the pipeline.

Maintenance

Who is responsible for maintaining the surface over the pipeline? The company should be required to maintain the area they are occupying. Is the company willing to provide a direct point of contact if you should have problems with the pipeline?

A petroleum pipeline easement warning sign

This is the first installment in a multipart series about oil and gas related law.

Carlos Estrada, Associate Attorney

This Blog/Web Site is made available by the lawyer or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney-client relationship between you and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

The post 5 Things to Know About Oil & Gas Pipelines appeared first on Bethune Enright, PLLC.

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