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Oil/Gas/pipeline easement pricing


Our pasture land is in the route of the BridgeTex Pipeline in central Texas. We, as well as our neighbors, are all being offered approx. $5.00 per linear ft combined for a permanent 50 ft easement and 45 ft temporary working space. We are working on the terms of the agreement at present and would like to know what you consider a reasonable price for the easement?

That is more subjective than a lease bonus question.  You, as the landowner, must balance the necessity and greater good of the installation with the permanency of the installation.  Usually, pipelines are installed and not bothered unless there is a problem.  I would be likely to accept the $5.00/foot with them having to pay for the installation of a new gate/cattle guard near the breaks in the fence (or whatever other amenity that would benefit both parties) or a counter-offer of $8.00/foot.  

They do this all the time - give you an option which human nature will choose one of the two rather than a third, so do that to them.  Gas company you can pay me $8.00/foot or you can do $5.00 plus a new fence, gate or cattle guard, etc.

It's always fun and games and they aren't going to be back any time soon so take advantage of the opportunity to get some little improvement completed while you have someone needing you/your property.

As for the reasonableness of the offer - there is no published or "going rate" other than the fair market value of the 2 acres they are crossing or condemning for future use to you other than pasture/farm land.  


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Cliff Williams


I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.


I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

Multiple oil and gas topical columns on

I have a B.S. degree which I rely upon more than my Business Mgmt degree or Law degree...

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