I was visited today from a person to see about doing a right of way for a pipeline for chesapeake midstream operating in columbiana county ohio. what is the going rate per ft and what about trees.
I read the contract but nothing mentioned specific about the paying for trees that need to be destoyed by the pipeline.
Tad...I will keep your name in mind...as well as Frank Lupino. Have you been working with Land Management through the Forestry Department for years...strictly following their guidelines? Or basically do you contact him in regards to selling your timber?
Feugo...Thank you for the link and the phone number!
We have about 250 acres in western PA of which half is forested in mixed hardwoods, including a lot of prime black cherry. We have been in a Forestry management program, all our timber harvests are managed by a qualified forester, who estimates board feet, whether or not the timber may be veneer, etc and he takes bids, handles the sale, and makes sure the purchaser adheres to any environmental concerns. We have done quite well with this approach but I can verify that the timber prices are very depressed now, due to the economy and housing market. We had a small sale a year ago just to thin some less desirable trees and the bids prices were down by at least 25%. Our forester has advised us to wait for the market to rebound. If the oil company is reimbursing you for timber you do not want it based on the current market. They actually should pay at least 2X the market value. I know we will not sign an oil or gas lease that does not protect our timber, because that has been a proven resource for us and has paid for the farm many times over. Just my 2 cents, take it for what it is worth. I know PA may be different from OH but the market is similar. A decent resource (although 3+ months behind) is the PA Timber Market Report online. Just Google it, it is very informative.
Thank you, Harold...you've given me a wealth of information. I will check out the PA Timber Market Report.