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How do you determine a right lease/easment price an oil and

Customer Question
how do you determine a...
how do you determine a right lease/easment price for giving an oil and gas company to run pipeline through your land? We seriously need to know so we can negotiate a price plus we don't want to agree to something that could have been more.
Submitted: 1 year ago.Category: Real Estate Law
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Answered in 15 minutes by:
6/23/2016
Real Estate Lawyer: Dwayne B., Attorney replied 1 year ago
Dwayne B.
Dwayne B., Attorney
Category: Real Estate Law
Satisfied Customers: 34,057
Experience: Began practicing law in 1992
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Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

The only way to know the right price is to look in your area and see what other people are getting. You can go through the deed records at the county courthouse and some of them will have amounts on there. You can also ask the company that is trying to lease from you to provide some "exemplar" amounts showing what they have paid.

Another way to go about this is to have a real estate agent give you an appraisal for how much the value of the land will be reduced by the pipeline being there. A lot depends on what kind of pipeline it is and where it will be located on the property and the real estate agent can consider all of that for you and provide a report. You then will have some type of documentation to back up your request.

The amount they pay varies according to where you are located. Obviously a pipeline running through an area that was going to be divided up into a subdivision in Harris County will be worth more than one going through open ranch land in Floyd County.

If your question has been answered then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work.

Of course, please feel free to ask any follow up questions in this thread. I want to be sure that all of your questions are answered. In addition, once you issue your Positive Rating the question will lock open and no longer time out so you can come back to it anytime in the future if you think of any follow ups.

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Customer reply replied 1 year ago
Ok so when I go to the courthouse look at deeds, how do I narrow that down from those have leases or don't? Guess I'm concern cause they did make an offer but they wanted us to sign right away and for a 10 year lease it sorta seemed low especially after tax is taken out.
Real Estate Lawyer: Dwayne B., Attorney replied 1 year ago

You will be looking for the ones that have actual leases. If they gave you an example of what they want you to sign take it with you. Most county clerks have a system where they can pull up the various kinds of paperwork.

I'd recommend you rely more on the real estate figures than what you find in the courthouse though because it's hard to compare apples to apples by a courthouse search. It really just gives you an idea and many of them won't have the real dollar figures, they will just say "$1 and other god and valuable consideration".

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Customer reply replied 1 year ago
Ok one more question. This was my mom and my uncle's land and if it was appraised before will I find it at the courthouse too? where can I find that out? Then I'll go from there.
Real Estate Lawyer: Dwayne B., Attorney replied 1 year ago

No, real estate appraisals normally aren't filed other than the tax ones which are completely different. You also don't want a regular appraisal done on the property, you want one specific to what we discussed above.

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