pipeline rates

Chesapeake wants to run a pipeline through our farm in Eastern Ohio.   What price per foot has been offered lately for pipeline right of ways....we assume gas but it could be oil as there is a gas line along the road now.   anyone have any advice?

 

much thanks in advance

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Permalink Reply by Billy Park Whyde on March 2, 2012 at 11:30am

YUCKO

Permalink Reply by James Milleson on March 2, 2012 at 12:49pm

the rule of thumb,... for a base is $1.00 per ft x the diameter of pipe x the # of lines...  what is the distance in footage across your property?  where do they enter and where do they exit?  is it gated entry?   are they permitted to put driveway entrys in place?   ask to see the permit application; what size of pipe will be laid?...what for construction width?  what for surface damage?[by the sq. ft. or by the acre]...what about timber, crop, pasture loss of use?  How deep, 48 inch?  Any above ground appruntences?...is it a right of way or an easement?....

there have been groups formed and groups paid; stick together with your neighbors.

we are all in this together, remembering all the time that the agreement reached is a partnership...stick to your ground, do not be unreasonable, be willing to communicate and most of all agree to disagree and work a deal.  Good luck 

Permalink Reply by Augusta Farmer on March 2, 2012 at 1:12pm

THANKS

Permalink Reply by joseph schuster on March 2, 2012 at 1:32pm

pipe lines are worth $5.00 per inch in diameter per foot of length. a 10 inch pipe line is worth $50.00 per foot

Permalink Reply by Augusta Farmer on March 2, 2012 at 2:02pm

if they put 2 pipes in is that $100/per foot

Permalink Reply by Stan Smith on March 2, 2012 at 12:39pm

Bradford County

Had a landman send me a contract for pipeline ROW with $5 a linear foot and few other provisions.  Basic boiler plate low ball offer (Don't blame them for trying)   They were very accomidating on the route (verbally) however the contract did not specify for survey and essentially was permission for anywhere on property.   I researched in Google/ consulted legal advice and found several things to look for - things like number of pipes, surface structures, burial to 48", secondary easements, landowner use, Gas Co employee access, maintenance, above ground pipes not allowed, etc... I also asked for surveyed route and abandonment claus, etc...   Having provided them with my terms, it seems the major sticking points are number of pipes, length of time before a pipe is declared abandoned and a strong desire to be permitted to put additional pipelines in in the future.  They seem hard set on $20 per linear foot in our area and I never heard of a yearly rental which may be a consideration.   Good luck in your negotiations

Permalink Reply by Augusta Farmer on March 2, 2012 at 12:47pm

thanks

Permalink Reply by JamesG on March 2, 2012 at 2:13pm

Tough decisions on a pipeline ROW.  Make sure you understand what the PIR (potential impact radius) means.  You may find your insurance rates will increase if you have a dwelling or barn within the PIR.  This has happen in Pennsylvania.  For a high pressure transmission line the PIR can extend well beyond the easement, like 700 feet from the pipeline.  Future development within this zone could become restricted by local ordinances.  Everyone needs to go into the deal with their eyes wide open.  Routing of the pipeline is a big deal.  Unfortunately, the surface property lines usually do not follow the most direct route for the pipleine.  It is possible for an adjacent landowner to be within the PIR and not be compensated for the effect on his/her property because the actual ROW is not on their property. Good Luck

Permalink Reply by Augusta Farmer on March 2, 2012 at 2:22pm

Folks, thanks so much!   This is great, I have never learned so much in a day!  

 

Another question....has anyone ever heard of pipeline ROW being paid by how much is pumped?   Is it even possible?    My fear of a one time lump sum is that money will be long gone but if it pays like a royalty, I'd like to see that cash cow.    And, how serious do the gas companies get when it come to uniting your land if your negotiating hard on a pipeline?

Permalink Reply by Billy Park Whyde on March 2, 2012 at 3:04pm
Permalink Reply by Augusta Farmer on March 2, 2012 at 3:48pm

thanks!

Permalink Reply by Gary on March 2, 2012 at 6:43pm

get a good lawyer or join a landowners group. If anyone tells you limited time only show them the door! GOOD LUCK.  

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