pipeline

 

As I recall from some earlier post most of the right of ways are in place for a pipeline ( is it called the north beaver pipeline? ) running to the thompson well site.

I think some work has commenced on this project but have not seen anything such as actual pipe being put in place.  Waterlines yes ( I believe to tharp pad ) but no pipeline/infrastructure.  The fact they are putting/spending money on waterlines to that pad is a good sign though.  I am guessing more wells to drill and frac soon. 

 

So, even if the right of ways are in place has anyone heard of an expected time of completion on this project?  As everyone knows without it in place, there will just be alot of wells shut in with no production.  Some leases dictate production or limit the shut in period or the lease expires.

Of course I suppose they could just revert to trucking product away from well sites if need be and thus avoid any leases expiring and I do not think any leases state how much has to be produced.

 

Thanks for any info on pipeline progress.  If I see/hear anything I will post it. 

 

MLB

 

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Replies to This Discussion

Permalink Reply by mkf on August 9, 2012 at 9:37am

Have you heard anything on when construction of the cracker plant might start and how it will take to build?

Permalink Reply by craig on August 9, 2012 at 2:46pm

Horsehead is going to evacuate the site by sometime in 2013 which means construction  would start shortly thereafter. I've heard it would take something like 2-3 yrs to build. There is gas that needs to be sold and pipelines are needed to do that. I suspect some of these lines are intended to supply the cracker plant after it is built, but will connect to other lines to sell the gas before that. 

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on August 11, 2012 at 6:43am

Nova Chemical next door to Horsehead is supposed to be hiring. I wonder if this has anything to do with Shell's plans? Can they handle NGL's to ready them for "cracking" I wonder? Maybe a relationship there...?

Permalink Reply by craig on August 9, 2012 at 2:53pm

I was told by an employee of the company installing the pipeline running from the thompson well that they were told they will be laying pipe for 5 yrs or so in our area. With only one period of reporting and only one well of CHKs producing we can't know for sure what we have here gas or liquids wise..... As well as the fact that they are going to drill into the Marcellus as well as the Utica. Look at my reply to mkf below as well.

Permalink Reply by mlb on August 21, 2012 at 7:34am

I have recently been approached about a pipeline for a gathering line.  Company is Western land services.  I only have some inital data but the right of way they want is 75ft wide, they pay by the linear foot and pay $15.00 per linear foot.

I have not had a chance as of yet to see what size pipe, how many pipes etc would be installed.

I'm not wanting to waste money on an atty right now...i did a fair amount without them and did fine.  This is not a done deal but does anyone know what a fair rate or has anyone heard of what is an acceptable rate for an easement of this size?   They many need 500 or more ft on my place, will see map soon.

At any rate its good as it means that the lines to rolling acres etc are coming.  This is the 1st I have been approached as to a gathering line.

 

Thks

Permalink Reply by craig on August 21, 2012 at 9:23am

A few things to consider:

$15 isn't enough to me. The line could be there for a long long time. You could be losing usable/sellable road frontage possibly forever. You can't ever build within what... 200 feet of it.

Some worry about their insurance, but i'm not sure that is a valid concern. 

I'd be asking for say $25/foot for ONE pipeline. More than one line needs to be negotiated when/if they desire to install more. I've seen where $30/ft was finally turned down by the gathering line folks, but they were thinking about it. They found a cheaper route...it was the line going to the thompson well from the tharpe well. He had the ROW narrowed to 50' and it was acceptable to the company. Also add in a clause that makes them take the line out and return the land to previous conditions...after the line isn't being used for a given length of time. 

I was just told that the line to Rolling acres+Maga wells should be installed by jan/feb 2013. Sounds like once they are done installing the western lines to Thompson, that they will continue on to Rolling Acres. 

On the upside, you really do want these lines installed in a timely fashion so that they can ramp up production and get us landowners some royalties.

Hmmm, trying to think who you are and where you are by your initials, which isn't working : )   ....seems strange that they are just now talking to you as they have options signed with lots of folks between thompson and rolling acres. On the other hand I've heard they have a few folks holding out that don't want a pipeline anywhere near them. If you don't mind telling, where is your land approximately located, closer to the Maga well or ? 

Remember my first axiom in dealing with gas related companies. Only believe 10% of what they tell you and don't believe anything else until the ink is dry on the contract.  Good luck!

Permalink Reply by mlb on August 22, 2012 at 3:48am

This is a 10 inch line from butler to vanport.  Actually up to 4  10 inch lines.   Its a north/south line.   Yea, im mainly listening now.  I also would want my own easements to reach sewer lines etc that are on my property.  No intention of ever using them but one never knows.

 I'm usually willing to work with whomever as long as things are fair/reasonable.  The money is a bonus but overall things need to be done right.  I don't need what they are offering but am also not one to stop things from moving forward as some folks are.   A buried line on the edge of my property would be acceptable under the right contract.

 

Send me a friend request craig...I did not see the tab for it and have to run. Thks.

 

 

Permalink Reply by mkf on August 21, 2012 at 11:06pm

Hawkeye Research was only offering $14.70 a linear foot and said it wasn't negotiable, although a lot of other things were, like width of pipeline.

Permalink Reply by craig on August 22, 2012 at 3:42am

Their offer probably won't be negotiable, until they find out if they truly need you or not. Was that offer from Hawkeye for a gathering line near you, or a transmission line?

Permalink Reply by mkf on August 22, 2012 at 9:27pm

A gathering line.  A transmission line would fall under eminent domain, wouldn't it?  This didn't.

Permalink Reply by industry resident on August 23, 2012 at 5:42am

I spoke with a friend yesterday said he got 17 a foot for agreement one large pipe heading to vanport from up north and one gathering line possibly which meant he would get paid twice-80 foot right away

Permalink Reply by craig on August 23, 2012 at 11:59am

mkf, Thanks for the answer.  

A transmission line could  fall under eminent domain but not necessarily so. I believe they would have to prove that there is NO other realistic solution to the needed ROW for a transmission line before they could invoke eminent domain. 

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