Pipeline Discussion with MarkWest

Have owned property in Millwood Twp. Guernsey Co. for past 25 yrs. MarkWest has contacted me about running a pipeline across my property. They don't want to pay much but talk like they will negotiate. Has anybody had any past experience with this company?

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Permalink Reply by Mrs D on January 21, 2015 at 8:53am
The survey permission we received was vague, open ended and needed to be redrafted. Everybody has their own level comfort and concern(s) about what they will sign and won't sign. They are being very accommodating to meeting our personal level of protection. We want our input right from the get go, the right paperwork before any footwork. That's just us though.

We felt a good guideline was:BLUEGRASS PIPELINE SURVEY PERMISSION CONSIDERATIONS.

According the Attorney and Kentucky Resources Council Director Tom FitzGerald, there are many things to consider when deciding whether or not to grant permission to Bluegrass Pipeline and its agents. Though this information is not meant to replace legal advice, you may want to include the terms below in any permission agreement that you sign, and have your attorney draft a permission form that includes these protections.

1. You might require that notice be given to you of the date(s) and times that any person will be on your property. That notice should be in writing at least two weeks before the surveying is scheduled, and should be followed up by additional notice by mail or phone call at least 3 days prior to when anyone will be on the property.

2. You might require that no person be allowed onto your property unless you or another person of your choice is on the property at the time.

3. You might require proof of liability, casualty, and worker compensation insurance policies. By giving permission to anyone to enter onto your property, you become potentially liable for certain personal injuries that may occur on the property. Conversely, while the survey permission form indicates that Bluegrass Pipeline will “pay for any and all damages to property, crops and fences that are caused by the Survey Work,” proof that the company conducting the surveying has both worker compensation and liability/casualty insurance is an important protection in the event that there is damaged caused to or by the surveyors. Additionally, the company should be asked to provide a letter of credit or evidence of a performance bond that will cover any damages.

4. You might require that the surveying company agree in the permission agreement to hold harmless and indemnify you for any injuries that occur to those surveying, and for any damage to the person or property of others caused by the surveying activity.

5. You might want to limit the duration and frequency of the permission so that it is not open-ended.

6. You might include a clause that terminates the permission if the surveying company violates any terms of the permission, such as not providing notice.

7. You might want to include a requirement that a copy of all survey information and reports concerning your property, (including geotechnical borings or surveys, and cultural and archaeological resource surveys) be provided to you within thirty (30) days after the information is collected.

8. You may want to include language indicating that “this permission does not constitute the grant of an easement, and is only a grant of permission to enter the property for the limited purposes described above.”

9. You may want to be specific about the sorts of surveying that you are allowing. The standard form provides an open-ended permission to conduct surveys that “include, but are not limited to”.... This open- ended language should be eliminated so that the specific activities that the permission allows are clear.

Above information courtesy of Tom FitzGerald, Kentucky Resources Council
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 20, 2015 at 10:49am

Charles,

     I didn't read all of the responses to your question, but I would call the below lawyer before signing any pipeline agreement. Sign nothing unless you know the pipeline ROW game in depth.

Gregory D. Brunton   Phone: 614-232-2632

Name:

Gregory D. Brunton

Status:

In Good Standing

Practice In:

Banking & Finance, Government Agencies, Corporate, Professional Malpractice, Ethics, State and Local

Law Office:

Reminger Co LPA

Location:

Capitol Square Office Bldg., 65 East State Street, 4th Floor
Columbus, OH 43215

 

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Permalink Reply by Michael Allen on January 20, 2015 at 11:40am

A survey permission is exactly what it is, permission, not a recordable instrument, and one that can be taken away just as easily as it was given. It is not an easement nor does it give anyone the ability or opportunity to construct, only to conduct surveys. The easement document is a whole different story and does need an attorney, that knows oil & gas, not just any old attorney.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 21, 2015 at 12:04pm

Thank You Mike, are you a Land Man by the way?

Permalink Reply by Michael Allen on January 23, 2015 at 1:23pm

Yes, for the past 30 years. Worked in Ohio back in the 90's.

Permalink Reply by evan on January 20, 2015 at 6:20pm
Gregory is who I use. Very knowledgable attorney and firm. Well worth the drive.
Permalink Reply by Ken Podlaszewski on January 23, 2015 at 11:28am

There are so many factors that will determine how much you can hold out for and what terms you do and do not want in any ROW agreement.  I assume that you have a fairly decent amount of ROW length that they are asking for and thus there is a pretty substantial amount of $$ at stake. As Ron Hale states, get a good attorney. Make sure he/she has lots of experience handling ROW agreements IN YOUR AREA AND WITH MARKWEST. He/she should be aware of what MarkWest is doing in the area and should be able to advise you on what the top end will probably be on what they are willing to pay. Oh, and of course he/she should have the experience to be able to negotiate terms that will be in your best interest. Even if the ROW on you property is short in length and thus not much $$ is at stake, be very cautious and sure about any agreement you sign; ROW agreements are pretty much forever! Rest assured that the first agreement they will offer you will be heavily weighted in their favor, both in amount and terms and conditions.

You will get lots of advice here, just like mine ;-)  My advice is to gather all the info and advice you can but DO NOT attempt to use that to handle it yourself. Use it to have meaningful discussions with your attorney.

As always, just my $.02.

Permalink Reply by Mrs D on January 23, 2015 at 11:40am
Very well said! I couldn't agree more.
Permalink Reply by Mrs D on January 21, 2015 at 8:19am
Is that amount for a transmission line or gathering line or did it matter?
Permalink Reply by Michael Allen on January 21, 2015 at 10:40am

Also numerous questions regarding permanent easement width, temporary work space, laydown yard, storage, truck turn-arounds, etc,etc.

Permalink Reply by alan coogan on January 23, 2015 at 2:23pm

Mr. Shell.

You have a remarkable number of responders, many with practical advice.

Now you know the general parameters and some specifics.

Actually negotiating a ROW with any pipeline company is a hard job in

contract bargaining.  If you are unsure about contract language, topics to cover,

etc.. there is a lot more to be found.  If you are sure, great.  Either way,

the better way is to engage an attorney.  Good luck

rxslaw29@yahoo.com

Permalink Reply by Mrs D on January 23, 2015 at 2:50pm

And so the saga continues....as some wise person told me once " there are more used car salesman in the oil and gas industry than in the auto industry" ... So our  "landman" that was working on behalf of Markwest   for the pipeline row says ....

"Unfortunately, I take it that you did not get my message on Saturday (UM, NO CONSIDERING  YOU NEVER CALLED OR LEFT A MESSAGE..LIAR). After we talked on Friday I learned later in the evening that the broker that I work for and Markwest are no longer working together (FIRED???). This means that I will not be working with you (AND WHAT WORK DID YOU DO) on this agreement and as far as what is in store in the future for it I couldn’t say (YOU NEVER COULD ABOUT THE PRESENT). If Markwest wishes to move forward with it another agent (BS'er) should be contacting you. I have no idea (REALLY, DID YOU EVER HAVE A CLUE ABOUT ANYTHING) when that might be (LOL). I hope that this will work out for you and your family. Good Luck."

WOW.. here is my new take on all this..." you want something, you speak to our lawyer and hash it out, and most importantly you pay the attorney fees to get it right,, you no like,, go up, go over, go around, or GO AWAY!"

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