Has anyone else been approached by EQT Gathering in reference to obtaining a pipeline right of way?
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Red
We have been approached by EQT a few months back. They presented us with a proposed map and more recently an agreement. We forwarded the agreement to a law firm for review. There are a few things I have learned in this whole process, don't accept the first offer and get legal advice. EQT has since been calling, but we are in no hurry to sign until everything is right. I heard thet some landowners are getting up to $60.00/lf. EQT's current offer is by the acre and just not a good enough to consider at this time.
Totally agree, their offer is ridiculously low for something that will make that area of your land basically theirs forever. I don't know that we'll see $60.00 a ft. but I do know that their offer of approx. $9.00 a ft for a 50ft wide right of way is crazy. It should be at least 3 to 4 times that.
I don't know either about the $60/lf, but I do know it is well worth holdng out for .Time will tell, right?
Back to the option agreement itself. I do not like, and question several items in addition to their pricing on the actual agreement.
Right off the bat, the prepaid damages and damage addendum is not going to fly. The one year option period and 1 year extension of option period is questionable. I will wait to see what the lawyers advise.
You can also try to negotiate for other options depending on how you use your land. For instance, if it is a woodland, you may want to consult with a forester about timbering or make considerations for wildlife habitats that already exist. I have heard that the timber has just been bulldozed under or chipped and spread at the location instead of sold when not included in the lease in some cases. Also, for someone that did negotiate for timber, they were no longer able to gain access to the trees that were cut anyway. It needs a lot of thought for all of the various scenarios about how you will be impacted for a very long time.
LW-I know-there is so much to consider. You also need to worry about what is not in the contract.
Red-Are your conversations with EQT about the Viper pipeline
By the way-you can go on alov.com and they have a sample Easement and Right of Way Agreement that you can download and compare to the one EQT is proposing.
OOHRAH,
I triedto enter www.alov.com and alov.com, but these were dead links.
I would appreciate it if you could be so kind as to check and post the appropriate website. I would be most interested in seeing their sample Easement and Right of Way Agreement.
Thanks in advance,
JS
Thanks OOHRAH,
I was able to get right in.
JS
OOHRAH-I'm not sure, it's in Valley & Spencer township. Was told it will connect to Tennessee pipeline near Claysville. Also in the the contract they don't offer to pay you for timber but cut it and put it next to the road for you to do as you wish. Don't see that flying at all. Their agreement is totally to their benefit, have NO INTEREST in signing it the way it reads and for what they are offering.
We are leased with them and have 4 wells going in soon. They have walked our land re: the pipeline and are forwarding me an agreement for review. I'll keep you posted.
One thing to remember with ALL right of way easement agreements. THEY ARE FOREVER. Unlike a drilling site or mineral rights leasing that normally have an end time of some sort or another. With a right of way easement once it is signed and in effect, it will effect that property and future owners of the land forever. So be 100% sure that all possible items are taken into consideration. A qualified attorney with experience in easements is imperative in getting a document that protects you, spells out everything, and you can live with.
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