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 Augusta Farmer on March 7, 2012 at 3:15pm

We are talking with neighbor and what do you know.....pipeline co. is coming back to the table to work routes better!    this is such a learning experience!   Thanks all!

Permalink Reply by Billy Park Whyde on March 7, 2012 at 4:14pm

Kinda like this time to them ok you ready to talk now and listen  or do you need a bit more exercise?

Permalink Reply by James Milleson on March 7, 2012 at 4:40pm

I have told folks, the basic rules of being a neighbor is what we need to follow.  Communication is a wonderful thing when it is for helping one another.  I have seen folks working hand in hand,who prior to the shale play would not even take the time to meet their neighbor, old time relations are coming back to our communities, we are starting to trust our locals 1st. Remember we own this land and these minerals, for only a short time, as the good Lord has allowed us to be the stewards,we need to educate ourselves so we make a sound decision.  Good luck and talk to every bordering neighbor and stay informed.    

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 7, 2012 at 4:55pm

My neighbor has a large scale crop farming operation for our area (1000+acres) and his property is crossed by at least 2 separate large diameter pipelines. Doesn't impede him one bit. Lots of soybeans and corn grow on them every year. When he was into beefcattle , he pastured over alot of it too. He even buys the gas to run his dryers from one of them. So , unless timber is your crop , they won't keep you from farming , just building on them.

Permalink Reply by Billy Park Whyde on March 8, 2012 at 11:56pm

Look towards the bottom Easements http://www.texasattorneyblog.com/texas_oil_and_gas_law

Permalink Reply by Augusta Farmer on March 9, 2012 at 9:27am

good info here!     thanks

Permalink Reply by jp on March 10, 2012 at 10:59am

What are you being offered for your right of way for a pipeline?  We are entering negotiations for one in Union Twp.  They want a 5-year option and do not want to give us anything for it.  They just want to keep it tied up with us with the possibility that they will put one in in 2013.

Permalink Reply by JamesG on March 10, 2012 at 11:34am

What is the upside for you?  Do you have a drill pad that has been permitted?  That is a petty big penalty of 5 years if you want to do anything else with the property.  If you would entertain having a pipeline, tell the landsman you would consider a route on your property and to comeback with specifics. That would be fair if you would give a ROW.  Also think about limitations you may want and tell them up front.  Number of lines, what can be carried in the lines, required inspections that are reported to you, how long can any pipeline remain idle before the easements terminate, timeframe for removal of pipeline, reassignment of ROW to another operator (this is important because the reassignment can be to a subsidiary that goes broke and you are left with the problem), and etc.

Permalink Reply by Augusta Farmer on March 12, 2012 at 9:10am

jp, we were offered 10.50 per foot but we have been told our neighbors are offered 15.   We have asked a megaton of questions and have not even hit $ money talks yet.    We are more concerned with route than money.    The engineer and environmentalist are supposed to meet to discuss routes....

Permalink Reply by Olive Sue on March 12, 2012 at 10:08am

First off limit the agreement to ONE LINE at a certain depth nothing can go over it!! And as others have said this is forever.  Any line deal should be per inch of diameter x per foot.  I am amazed they continue to use the "sign within the week or no deal".  This is the time to become real neighbors again.  It still applies "united we stand " but new ending divided we get taken BIG BIG time.  Good Luck.

Permalink Reply by jp on March 12, 2012 at 5:50pm

We were offered $1 per inch of pipe per foot or $30/ft. for a 30-inch pipeline with an additional $15/ft. for damages.  We want to limit it to one pipeline and negotiate for any additional things (e.g. pig catchers or compressors).  They seem agreeable to that.  Also, they want a 5-year option and I see no reason to go beyond 2 years.  The lease they gave us to read over seems to be in their favor (everything for them and nothing for us unless they put a pipeline in).  I don't know if money for options is being offered, but no offer was made to us.  We are dealing with Cobra.

Permalink Reply by jp on March 12, 2012 at 10:01pm

I am correcting.  We were only offered $15/ft.

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