Rice and Gulfport gathering lines

I know Gulfport and Rice have a development agreement in the four Belmont county townships. I am leased with Gulfport.    My question is:  Is Rice Olympus running the gathering lines for Gulfport wells?? I have talked to a fella from Rice Olympus who is trying to tell me that they can "make us sign for this gathering line" because of the joint development agreement.  I'm not sure I buy it.... I thought Gulfport and Markwest had an agreement signed in Dec. 2013  for a gathering system and I know some neighbors have signed with Ohio gathering.  Anyone have any info.??

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Permalink Reply by MK on April 19, 2014 at 1:14pm

Absolutely!!   That agreement lets them put whatever they want! When I told the guy we would sign for the pipeline only (not valve sites, electric lines, pig launchers, ect.)  He came back with an addendum for a valve site!!  we have been talking to him for over a month and that was never mentioned... also just found out about the water line they want to install in the same ditch with gas line.... All for $20/ ft. So what do valve sites go for.... any idea??

Permalink Reply by Bill Barnaby on April 19, 2014 at 1:50pm

Not to get your hopes down, but we were in talks with them and $20 a foot was it, we finally told them we did not want it for $20 a foot. Have not seen them since, and they appear to have gone around us. A pipeline for $20 a foot is an AWFUL deal, we're very happy we told them no. We don't dislike rice but $20 a foot was as I said before awful. If they paid us $7500 an acre we may of thought otherwise but they never.

Permalink Reply by MK on April 19, 2014 at 4:06pm

Oh no... not getting my hopes down.... if they can get someone else to sign that contract the way it's written up at $20/ ft by all means they can have at it!!  Let them go around!!  I'm not trying to get rich quick by any means.... I just want a good contract and a fair price! This guy is saying these gathering lines are for Gulfport wells to try and get us to sign.

 

 

Permalink Reply by Mark Y on April 20, 2014 at 9:35am

Is that being paid by square footage? If it is it might not be too bad of deal. 

Permalink Reply by MK on April 20, 2014 at 1:01pm
That is $20/ linear foot.
Permalink Reply by Mark Y on April 20, 2014 at 5:01pm

So regardless how wide the path is you will just get 20 dollars a foot. Why would you sign. 

Permalink Reply by TreeMom on April 20, 2014 at 9:36pm
Well, no pipelines no gas sales. That would be the main reason, I would think, for someone who is leased. The 20$ is likely for the first line, more for additional lines?
Permalink Reply by Kristy Foster on April 21, 2014 at 8:28am

Check with your attorney of course. But they can't make you sign for intrastate lines. They can only make you sign or use eminent domain for interstate lines.

Permalink Reply by Bill Barnaby on April 21, 2014 at 9:20am

Many leases mention pipelines being ran from the well also, just something else to keep in mind.

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