Pipeline Equities
PO Box 571977
Houston, Texas 77257
Phone: 713-623-0690

Pipeline Recovery

excavation & removal

Damage Assessment

of easements

Pipeline Appraisal

pipeline property valuation

The Value of a Pipeline

Every right of way appraiser in the country appraises the value of a right of way based on acquisition or relocation methods… very few, appraise the value of a pipeline within that right of way.

Pipeline Equities saw the need to find a method of appraisal to value pipelines that may have been overvalued after time for tax purposes or undervalued in terms of a merger, acquisition or estate settlement.

Why Appraise?

These are the basic reasons for a valuation report on an active or inactive pipeline:

  • Preparing for a sale or divestiture
  • Readjusting state, local, ad-valorem taxes/tax assessments
  • To settle an estate
  • To settle a partnership
  • To determine value of an asset in any entity
  • To determine salvage value
  • Preparing for a purchase or acquisition

Methods of Appraisal

To come to a value, Pipeline Equities uses the methods of market analysis, income approach and asset based. Each can be employed if the occasion calls or a combination of all can be used. We have found that value occurs with the interaction of demand for product, utility of product, scarcity or supply, and transferability of ownership rights.

Factors for Determining Values

Going deeper, we use as many as forty different factors to make our determinations. These factors are the more technical aspects pertaining to those broader areas of demand, utility, scarcity, and transferability.

They include:

  • Throughput value transportation (income)
  • Depth of coverage of pipe
  • Right of Way agreements
  • Replacement Value (asset)
  • Salvage Value
  • Supply (other pipelines in area/scarcity)
  • Demand (potential buyers?)
  • Surface Inventory (including appurtances)
  • Sales Contracts / Length
  • Potential for replacement volume (new wells, tie ins)
  • Type of System, oil & gas, product, etc.
  • Size of pipe
  • Specification of pipe
  • Management (front office)
  • Maintenance
  • Date of Installation
  • Interconnects
  • Cathodic protection
  • Pipe coatings (vintage)
  • Environmental concerns
  • Appearance
  • Reservoir studies
  • Market price of commodity
  • Type of system: trunk, gathering, etc.
  • Chemical content of transported product (H2S, CO2)
  • Market diversity
  • Proximity to markets
  • Geography / terrain
  • Diversity of suppliers

Other factors depending on whether product is purchased at the wellhead and resold, whether and to what extent product is compressed, enhanced, treated, cleaned or processed and in what way.

Various Uses:

Over the years, Pipeline Equities has had a diverse list of clients who sought pipeline valuations for reasons such as:

  • Settle a family estate or as in a closely held corporation.

  • Reestablish value for county, school, and other local taxing authorities for a gathering system which had lesser throughput than when taxes had been originally assessed.

  • Value of a pipeline for purpose of establishing value for accounting purposes (client sought to expand the line with loan and bank sought appraisal.)

  • A city seeking a valuation of an abandoned line to convert it to waste water transport (city charter requires an appraisal.)

  • Still another requires appraisal of an existing line in order to grant a new loan for expansion.

The appraisal of pipeline is a niche industry – overshadowed by those who are appraisers of right of way for the purpose of paying damages to landowner or acquiring new right of way. The methods are different. One is the way a land appraiser looks at land the other is the way a pipeliner looks at a pipeline and the right of way it rests in.

Pipeline Equities uses a combination of appraisal methods, but centers on those that particularly lend themselves most readily to the oil and gas pipeline industry. We always take into account the perspective of the pipeline operator, whether trunk, transmission or gatherer.

pipeline recovery

Request a complimentary Pipeline Recovery Manual

Fill out the short form below to receive our Pipeline Recovery Manual.

Pipeline Recovery Manual

A complete guide to the business of recovering out of use pipelines

Sign up for our free newsletter to receive your complimentary copy of our Pipeline Recovery Manual that explains our entire process for recovering or salvaging idled or abandoned pipelines.

You will see how we deal with landowners regarding notification and recordings. How to draft a contract of sale with models by: Exxon, Texaco, Koch and others and pictures showing actual work in process.

The manual shows Pipeline Equities job references, right of way releases, agreements and the history and background of Pipeline Equities and managing partner David Howell. These references touch on parts of the six million feet of line removed or handled by the company over the past twenty years.

A line pipe table describing various weights, grades, and pressure ratings of ERW and seamless line pipe is included. This section is an indispensable tool for anyone doing operational word with line pipe.

Also included are extensive glossaries of pipe, pipeline, and right of way terms.

pipeline appraisal

Request a complimentary Pipeline Appraisal Handbook

Fill out this short form and you will be sent a confirmation link to our Newsletter. Once you click the link you will be subscribed to our newsletter and taken to a page where you can download the Pipeline Appraisal Handbook.

Pipeline Appraisal Handbook

The Definitive How-To Guide on Establishing Values for Pipelines

This handbook written by David Howell, managing partner of Pipeline Equities is the basic text of any pipeline valuation. All of the essential factors for establishing the value of a pipeline are discussed along with exclusive proprietary formulas and tables essential to a certified appraisal.

Also included are 32 pages of pipe weight and grades tables that cover virtually any situation which might be encountered regarding line pipe requirements. Additionally you’ll find an extensive glossary of pipe, pipeline and right of way terminology is part of the Handbook.

Subjects include: Replacement, Right of Way, Surface Inventory, Throughput, Salvage/Recovery, and comparable sales histories to name a few of the basic factors of pipeline appraisal.

The author recognized a need for a report or “how to” manual for properly appraising pipelines and pipeline right of ways. Currently the work is being done by accounting firms, engineers, and real estate appraisers.

This handbook draws from 45 years of experience.

Howell has forty-five years experience in many sectors of the petroleum industry from drilling contractor and oil and gas operator to pipe and supply distribution throughout the world. He has published Tradex Equipment magazine, the Whole World Oil Directory, and the Texas Oil Register.

For the past twenty years, Howell has been almost exclusively engaged in pipeline sales and acquisition, appraisal, removal for salvage, environmental remediation and general pipeline operations.

Howell currently serves on board of the Pipeline Appraisal Institute and is a member of the International Right of Way Association. Howell is a graduate of Texas A&M University – Kingsville and a native of Alice, Texas. He is currently residing in Houston and is the managing partner of Pipeline Equities.