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Pipeline on farmland

Posted on 12/18/22 at 10:27 pm
Posted by TigerGyp
Lafayette
Member since May 2006
975 posts
Posted on 12/18/22 at 10:27 pm
Trans Canada has a pipeline planned that will cross farmland in Jeff Davis Parish. TC is offering approximately $200 per rod as compensation. Looking for information about recent pipeline deals. Not looking to gouge TC, just want to be treated fairly.
Posted by rlp
Shreveport
Member since Sep 2005
650 posts
Posted on 12/18/22 at 10:32 pm to
Had a NG pipeline cross my place in East TX last year, $600/rod plus timber allowance where cleared
Posted by TigerGyp
Lafayette
Member since May 2006
975 posts
Posted on 12/18/22 at 10:40 pm to
Yeah, I was thinking your figure is a more reasonable number. There will be some damage reimbursement here also.
Posted by CharleyLake
Member since Oct 2006
1326 posts
Posted on 12/19/22 at 6:42 am to
I will be willing to help you. I have negotiated several ROW & Servitudes in Calcasieu.

The offer that you received is embarrassing.

Does Trans Canada have FERC approval at this time?
Posted by TigerGyp
Lafayette
Member since May 2006
975 posts
Posted on 12/19/22 at 7:06 am to
It’s an intrastate pipeline, Ragley to Lake Arthur. Would FERC be involved? I have someone working with me on the crop damage issues. A way to contact you?
Posted by CharleyLake
Member since Oct 2006
1326 posts
Posted on 12/19/22 at 7:40 am to
The Federal Energy Regulatory Commission is charged by Congress with evaluating whether interstate natural gas pipeline projects proposed by private companies should be approved. I copied this on the first page from my FERC brochure.

I realize that you stated "intrastate pipeline." Let me research this.
Posted by CheesyF
Member since May 2017
389 posts
Posted on 12/19/22 at 12:10 pm to
Intrastate pipes are not FERC regulated
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51628 posts
Posted on 12/19/22 at 12:14 pm to
quote:

TC is offering approximately $200 per rod as compensation.


I don't think so. It's been a few decades since pipelines were run through our farm in NELA, but I seem to remember it being a far better price than that (we were the last ones in that section they approached).

One thing I do remember from the guy who advised us though is to make sure the contract stipulates only the one pipeline so they will have to pay for any successive pipelines they run. Our contract escalates the price with each successive pipeline.
This post was edited on 12/19/22 at 12:16 pm
Posted by Merica
'Merica
Member since Mar 2013
982 posts
Posted on 12/19/22 at 12:22 pm to
Intrastate lines can be FERC regulated if they transport gas for an interstate line or move interstate line gas in any capacity.
Posted by CharleyLake
Member since Oct 2006
1326 posts
Posted on 12/19/22 at 12:23 pm to
Thanks. I just learned that Intrastate pipelines are not subject to the regulation of FERC. Would their permitting and certification be obtained through the LA Dept. of Natural Resources?
Posted by Merica
'Merica
Member since Mar 2013
982 posts
Posted on 12/19/22 at 12:25 pm to
Every new pipeline is subject to permitting from local state and county permitting and possibly also FERC. just because it is intrastate does not mean it will not be FERC regulated. If it ties into an interstate line and moves interstate line gas it becomes FERC regulated.
Posted by CharleyLake
Member since Oct 2006
1326 posts
Posted on 12/19/22 at 12:26 pm to
Did the landman purport it to be for natural gas service?
If yes, for residential heating or for LNG export terminals?
Posted by LaTexSaint
Member since Jul 2013
1023 posts
Posted on 12/19/22 at 1:32 pm to
Do they have Imminent domain?

Does that $200/rod include damages or just an easement agreement?

Will the construction take place during harvesting season?

Most pipeline routes generally follow existing servitudes, if there is an alternative route to your property, this could affect your bargaining price.

Posted by CharleyLake
Member since Oct 2006
1326 posts
Posted on 12/19/22 at 3:14 pm to
If that is the case, is FERC authorization required to begin construction?
Posted by TigerGyp
Lafayette
Member since May 2006
975 posts
Posted on 12/19/22 at 3:22 pm to
quote:

Did the landman purport it to be for natural gas service? If yes, for residential heating or for LNG export terminals?


Pretty sure it's for natural gas that's sourced in north Louisiana.

Posted by TigerGyp
Lafayette
Member since May 2006
975 posts
Posted on 12/19/22 at 3:25 pm to
quote:

Do they have Imminent domain? Does that $200/rod include damages or just an easement agreement? Will the construction take place during harvesting season? Most pipeline routes generally follow existing servitudes, if there is an alternative route to your property, this could affect your bargaining price.


Imminent domain- yes, I would think so.

$200/rod- That is just for the easement. Not damages. Has since been upped to $400/rod. I want more than that.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51628 posts
Posted on 12/19/22 at 3:54 pm to
quote:

$200/rod- That is just for the easement. Not damages. Has since been upped to $400/rod. I want more than that.


How long did you sit on the offer before he doubled it?
Posted by TigerGyp
Lafayette
Member since May 2006
975 posts
Posted on 12/19/22 at 3:59 pm to

quote:

How long did you sit on the offer before he doubled it?


I have not spoken to the landman representing TC in 2 weeks. A neighbor told me that he was offered $400.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51628 posts
Posted on 12/19/22 at 4:22 pm to
quote:

I have not spoken to the landman representing TC in 2 weeks. A neighbor told me that he was offered $400.


Keep not talking to him while you wait to get good advice, time is on your side as he and others are working to try to get as many contracts signed as quickly as possible.
Posted by CharleyLake
Member since Oct 2006
1326 posts
Posted on 12/19/22 at 4:51 pm to
You need to get verification that that the pipeline company does have expropriation authority under Eminent Domain. It is called "condemnation" in Texas. If they do not you can name your Servitude and Right of Way terms.

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