Oil/Gas/Pipeline lease
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Question
James,
One year ago I acquired a tract of land with a crude oil pipeline. There were no copies of the pipeline's lease of ROW. The pipeline was installed in the late 20's and is an intrastate moving 27,000 bbl/day from the Gulf Coast to West Texas refineries.
Questions:
What is my relationship to the pipeline company?
How do I find out our relationship? Calling the company (Sunoco) was of no use. They simply loaded me up with safety brochures.
How long does a lease typically run?
Should I be getting some revenues for the lease?
It is my understanding that Sunoco intends to increase the pipeline volume to 40,000 bbl/day. Does this change our relationship?
Thank you,
Jeff
You bought the land subject to a right-of-way agreement, which is a covenant running with the land until such time as it expires by its own terms, which is usually the termination of use of the pipeline for a specified period of time. You have no direct relationship with the owner of the pipeline. They can do anything at any time that is defined in the agreement without noticing you. All compensation is set out in the right of way agreement.
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Answers by Expert:
James H. McConnell, CPL
Expertise
READ CAREFULLY BEFORE ASKING ME A QUESTION I will try to answer questions about Oil & Gas leases, minerals, royalties, and servitudes, if the questioner has provided a good description of the lands. I require a section, township and range for any land not in Texas. I require a survey name and an abstract number if the lands are in Texas. I will answer questions about offers to lease or purchase mineral interests only if all terms of the offer are in the question, including the term of the Lease or conveyance, the royalty and the amount offered. Failure to provide this information will result in the question being rejected. I have answered more than 3800 questions on this site and get as many as fifty in one day. I do not have the time nor am I inclined to deal with detailed questions requiring an attorney. I am not a substitute for an attorney. If you do not write in a cognizant form, I will reject your question. If you have done real research and have a question I find interesting, I will answer it. If you haven't done any research on your own, I will not do it for you. If you do not rate the first answer, do not send a follow up, because I will reject it.
Experience
I have been a Professional Landman for more than thirty five years. I have drilled and operated oil & gas wells in Louisiana and Texas and an familiar with the rules and Regulations of the Texas Railroad Commission and the Louisiana Department of Conservation. I have testified in court as an expert witness.
Organizations
American Association of Professional Landmen
CPL #5303
Education/Credentials
BA NSU, 1971
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