When I purchased some acreage across the road from my house several years ago , I inherited a Tennessee Gas pipeline row that cuts through perhaps 900 or so feet of it. With all the comotion lately about the need for more pipelines to service a growing number of gas wells , I figured I better find out some details of the agreement signed back in the day by the now long deceased landowners.Who knows , maybe there is potential to cash in if they ever want to add some more lines.
Well , after a couple wild goose chases dealing with Kinder Morgan trying to track down a copy , I finally hooked up with the right connection and today my copy arrived in the mail! On October 28,1949 the landowners signed for a whopping $10.00 + $1.00 per Rod. That's right ONE DOLLAR PER 16-1/2 FEET! Works out to about 6 CENTS PER FOOT per line. Don't guess I'll be getting rich any time soon off of this!
There's a moral to this story. Get the most you can for you now and the future landowners someday down the road. I can't believe this was a good deal even in 1949. These landowners were immigrants and simple farmers and my guess is they were taken full advantage of by a slick land man. Or was it the norm for 1949....?
Anyone else had the pleasure of looking up old row agreements with crappy terms like this?
Don't fret too much Trap, I'm working on one now for 150 acres and the lease goes back to the 1970's, not as old, but just as one-sided.
Ron My jaw hit the floor when I read that dollar per rod part. Had to google to see what a rod was and couldn't believe it was 5-1/2 yards or 16-1/2 feet! Man , even a buck a foot had to be lowball , even in 1949......incredible.......practically free!
My company may be in a position reversed from the norm. Pipeline is coming our way to hook up 4 new Utica wells and we found out the ROW was signed by the wrong party :')
Trapper; have an attorney review it. May be a clause you can use.
Kathi, I assume these two parcels you speak of are now your property with the pipeline? How wide of a row do they stake every spring? Is it 30 feet wide throughout both parcels? I would assume the width they mow would be the total row too but not sure.
$1.00 in 1949 had the same buying power as $9.53 in 2013.
Annual inflation over this period was 3.58%
Googled the above- not a good deal, even in 49,
Additional line at the same payment is a real killer. Only hope would be that a sharp lawyer can find a hole somewhere in the old lease.
Your moral of the story is absolutely correct.
As I have said in some other threads - I don't believe a pipeline ROW is worth the trouble unless "wheeledge" or a continuing annual payment (preferably with a escalation clause) can be negotiated. Good luck with that, but maybe, just maybe, if enough landowners start demanding it .......... Nah, not gonna happen.