does a pipeline company pay part of payment at beginning and rest at end?

Getting ready to do a pipeline lease (for gathering lines)...

Do we ask for half up front and the remainder when done? Does the pipeline company consider the work "complete" when they are finished on our property or the entire length of pipeline before the pay the remaining amount of agreed upon money??

What is normal as far as upfront payment? Half or less than half?

THANKS!!

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Permalink Reply by Joe C. on July 4, 2020 at 2:36am

The company is presenting you with a pipeline right of way easement. You should receive an

Easement, Exhibit A, Order of Payment and W9.

You should get paid full amount in a certain amount of days. It will state the full amount and say 30 or 90 days for payment on the order of payment form. Make sure the company pays you the full amount. 

Some companies may not use a Order of Payment, they may just list the per ft amount and total amount on the easement. 

Permalink Reply by Joe Bezel on July 4, 2020 at 5:54pm

I'd want paid in full before they break ground, but that is up to you.  Make sure you have a competent oil and gas attorney look over the lease BEFORE you sign.  Some companies have been known to slip in language that allows them any number of rights to your property that you may not be aware of.  This lease is forever, they have their lawyers writing the lease, make sure your lawyer approves it.  Don't get hosed.

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