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Discussion Starter #1
Got a call from a land agent about putting another pipeline through my property down in WV, Ive done some surfing and Im coming up with 5-50 bucks per linear foot. Anyone have any experience about what price point to be at? Also, what about the trees they cut down, one would think they would have to pay for the trees as well.
 

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What I got is a buck per inch in diameter per foot. So a 10" line going 100' would be 1000.00 pre tax. 10" x 1.00 x 1000' = 10000.00. A 24 inch line would be 2400. 24" x 1.00 x 1000' = 24000.00. Thats reseeded and gated on both ends with the logs stacked.
The trees are yours and yes they should pay you damages in the current timber value of the woodlot. If you have nothing but scrub, yellow pine or pin oak, you dont really have much to count on and timber isnt real hot right now either so dont plan retirement.
 

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Discussion Starter #3
He called me again, threw up an offer of 50 per foot, with the trees stacked for the logger.
 

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He called me again, threw up an offer of 50 per foot, with the trees stacked for the logger.
One of the reasons I got a ROW was because there was a landowner on the preferred route that kept upping the price. Just food for thought. There are more ways to a point than a straight line.

50/foot doesnt sound like a bad deal to me. They might go higher, or they might go around.
 

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He called me again, threw up an offer of 50 per foot, with the trees stacked for the logger.
i would counter with what Varmintmist said

What I got is a buck per inch in diameter per foot. So a 10" line going 100' would be 1000.00 pre tax. 10" x 1.00 x 1000' = 10000.00. A 24 inch line would be 2400. 24" x 1.00 x 1000' = 24000.00. Thats reseeded and gated on both ends with the logs stacked.

if it happens to be more cash in your pocket.
 

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Thing is, I got 1 line and the price of the timber, IF and I repeat IF I live to see the other two that are contracted for and they are larger than what went in, I will see more than the 50/foot. If they are the same as what went in, I will make about the 50/ft. 50/foot on a 1K ROW is 50,000.00 pretax, about 35,000.00 in the bank, plus, if you can find a logger to take the timber, then you have whatever you can get off of it, or a bunch of firewood.

IMHO, it shows Ghost as retired. I would smile and take the 50, buy the wife dinner and maybe upgrade the vacation. If all is good on the retirement front and everything is paid off, then I would put it away for the next car or split it and gift it to the kids.
 

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Some old neighbors of mine had a pipeline put in years ago. I can't speak to the price but I can tell you that they just piled the timber up and let it lay. I don't know if that was the landowners decision or what but it was mostly mature hardwoods. There was also an area on another neighbors property where they intended to drill a small horizontal well and cleared probably 1-2 acres of trees in preparation. I guess after some further testing they decided not to drill and again the trees were left to rot. Long story short, ourselves and some other neighbors had a great supply of firewood for many years, but it seemed like a waste especially on the well site that never materialized. This all of course was at the start of the marcellus boom probably 10-15 years ago. They seemed to have improved some of the methods since then. Back at the start they were sucking tons of water 24/7 out of every creek, stream, and lake around and that kind of pissed me off, but as I said they seem to be recycling more now.
 

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when you are dealing with these companies, get them to put timelines in writing, in your contract. make sure that when they say will put in a line and pay you per foot that they also have a date when the well will be drilled.

i hear a lot of folks get great contracts that are going to pay big when the well goes in but there is no time line for the drilling to begin or if they will keep the well operational.

a lot of the contracts all depend on active wells. get it writing that you get paid regardless if they drill or not.
 

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Agree to ONE pipe for this price, and put that in writing , And remember, You will continue to pay the tax's on this property that you now can NOT use. This pipeline is for ever. And if you want, get the trees removed ( get that in writing also) so you don't have piles sitting rotting for the next 50 years. you may also demand the seed you prefer laid into this ROW. fertilized, and planted. I have also heard of a royalty type payment on pipelines, not sure of the specifics on that one. $50 a lf in pretty good.
 

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Discussion Starter #12
Bringing this back up. I settled at 85 per foot (10 bucks more than I would have took) plus $20,000 for road use and a .75 acre pad. I was very happy with the out come.
 
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