Per acre fee for temporary easement for pipeline replacement

Tennessee Gas/Kinder Morgan has known for more than a year that they need to replace a 36 inch line that runs through my property. It is now scheduled for the end of March as mandated by a federal agency. Their problem is that they only have a 30 foot permanent ROW but will need a temporary easement for workspace. Neither of the first two outside contractors for the job has talked to me about their workspace needs. I now have a meeting with outside contractor #3 in early January to discuss the terms of a temporary easement that he agrees is needed. He said they will pay by the acre. The 45 foot temporary easement granted when the pipeline was first constructed amounted to a little more than 3 acres in addition to the 30 foot ROW. Since this is an upgrade/replacement it is a little different from other ROW issues discussed on GMS. Any advice as to what they should be paying is welcome. They can't say they will go around me but there is the eminent domain issue if they have time to take it to court.

I realize that this project is small potatoes to Kinder Morgan since it only involves about a mile of pipeline, but most of it is on my land. Their use of revolving door outside contractors leaves a lot to be desired. All attempts to discuss this issue have been initiated by me. After they give me their best offer, I of course will get legal advice before I sign anything.

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Permalink Reply by Eric on December 19, 2013 at 5:07am

what state?

Permalink Reply by Kathi Albertson on December 19, 2013 at 1:45pm
Ohio
Permalink Reply by Trapper on December 19, 2013 at 12:50pm

You should see a lawyer and perhaps let them handle this. If the original agreement holds 45 feet as a construction row , I would bet that still stands today. That's only 7-1/2 feet per side and they may WANT more and pay something for it , but If that's all they had to work with when originally installed , they should be able to manage as is. However , a sharp lawyer may be able to seize this as an opportunity to greatly improve your agreement and get you a better contract moving forward. I have a hunch we will see pipeline companies wishing to widen and stuff more lines into these row's in the near future and this may just be your chance to get a much better footing in preparation for such a situation. Just my thoughts on the matter , but I wouldn't waste any time getting sound legal counsel. I have some regrets for not doing so in the past and I assure you I won't let that happen again. Best of luck to you and please keep us posted.

Permalink Reply by Kathi Albertson on December 19, 2013 at 1:52pm
Trapper,
The original ROW agreement clearly states that the 45 foot temporary easement "shall automatically cease and terminate at the expiration of one year from the completions of the construction of the pipeline on the Grantor's land." So I know that they only have 30 feet. As I think that you found with your Kinder Morgan issue, the problem has been in getting someone consistent to talk to. As soon as we hear what kind of work space Kinder Morgan wants we will know what we are dealing with. However it would be good to have some idea as to what others are being paid per acre in a similar situation.

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