pipe lines

Can anyone tell me if you can be forced into a pipeline or is it purely optional?  I was contacted about a pipeline on my property and after looking over their proposal decided I was not interested.  They seemed a little put off that I turned them down so I asked them if I was obligated in any way and they said no but still seemed pretty unhappy about it.  I am just a  bit nervous over it and wanted to make sure that I couldn't be forced.  Thanks

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Permalink Reply by Dave on February 14, 2013 at 7:45pm

Depends on what kind of Pipeline.  For a gathering line no but for a transport line like the Marc 1 yes.  Several people were forced to have that line put through their land.

Permalink Reply by Kris Smith on February 15, 2013 at 1:00pm

It is a line that will run from a nearby well... how do I know which kind of line it is?

Permalink Reply by Oliver Perry on February 15, 2013 at 1:26pm

That would be a gathering line, and you are under no obligation to them.

Permalink Reply by Kris Smith on February 15, 2013 at 1:52pm

Thank you for all replies.

0agf12owuyn7dPermalink Reply by 0agf12owuyn7d on February 15, 2013 at 2:34pm

You must not like money! or your just playing the game if so kudos to you! I don't like pipe lines because when they blow out!  Hope your not with in a quarter mile! ...lol good luck either way!

I have one going next to me! And I can't do anything about it! 75 ft. away from my camp door!

They won't even give me a dollar! It was originally suppose to go through my property but the neighbor's across the road drive-way It would have went through it and they didn't want it to for some kind of reason, so they went right around me literally! O-well there not tearing up my property either!   

Permalink Reply by Farmer John on February 16, 2013 at 7:10am

Kris,

What your obligation is depends on certain factors:

1. Transmission line - like Tenneco, MARC 1, or other natural gas interstate lines, those projects come under the auspice of the Feds at FERC -- which gives Eminent Domain Power to the Company installing a FERC approved line.  This  very onerous power can let them call most all the shots and really the Landowner ultimately loses. Denying entry, chaining yourself to the Bulldozer, etc. all sounds good, IF you want publicity.  Don't expect it to yield anything else though.

2.  Gathering Line - smaller lines that bring together neighboring well production and pipe it to a major transmission line tie-in point.  In Pa. presently, such lines do NOT have Eminent Domain powers.  On these projects the Company has to negotiate & meet the Landowners demands OR go around. NO, the Landman usually won't offer all that, even if it is true. Sometimes a Landman might even deny this & instead mention the empty threat of Eminent Domain.  The point is that with Gathering lines, a Landowner can win.

3.  Gathering line from a well in which the Landowner IS IN THAT well's Unit, and/or in which the Landowner is signed onto a lousy boiler-plate lease that says the company may lay lines from OTHER wells across the Landowner's property, as the Company sees fit.  Depending on the lease language, the Landowner may have  bargaining power and get something, OR may have no power and get nothing.  Typically, even with little/no power, IF the Landowner is reasonable, they may be able to negotiate location, restoration, minimal compensation -- agreed to by Gasco to keep peace.

 

So always KNOW what position that you are in, before you say much at all, and always lawyer up with competent counsel BEFORE you sign anything. There is never a rush, except in the minds of the Landmen.  Take your time and do your homework.  Your decisions can have impacts on your property  FOREVER.

Permalink Reply by DJM on February 16, 2013 at 10:09am

My property is leased,in my lease agreement the gasco has the right to run gathering lines if the well is on my property, if the well is not on my property,(even if I am in a "unit") the gasco will need to get a row from me if they wish to cross my property.   Good luck to you!     

                                                Dan

                                             

Permalink Reply by Oliver Perry on February 16, 2013 at 11:03am

The landman admitted she was not under any obligation, why should she get a lawyer Fang? She doesn't want the line, end of story.

Permalink Reply by Kris Smith on February 16, 2013 at 5:11pm

A little more information...  I live in ohio and the person who contacted me said they were a pipeline company working for chesapeake.  I turned down the offer because   1. They proposed to put a 50' row right down the middle of my property making it useless for anything else... wouldn't be able to build a house etc.  I asked them why they would propose this to me when the drawing showed the line going along the edge and across the back of all my neighbors properties. They said it was because I didn't live there.  What???  So what am I ever going to do with this property after they ruin it?  No one will ever buy it and I wouldn't be able to use it.  2.  The agreement read and I quote, the pipeline would be buried WHERE POSSIBLE.  Yeah right.  3.  The offer was for $15 a foot.  WHAT?  They want to completely ruin a $50,000 piece of property for about $10,000?  Please tell me they can't do this.

Permalink Reply by Joe Bezel on February 16, 2013 at 5:39pm

They can't do this...IF you say no.  Too many people are broke and are easily swayed by a five-figure check waved in front of them.  You are absolutely right, a pipeline across your land forever changes the value of it.  I recently negotiated and signed a ROW for an interstate transmission line with the help of an attorney.  The company (Enterprise) was professional, reasonable and willing to dicker a bit.  A few weeks ago, a landman from another company knocked on my door, and after a couple of minutes I was ready to boot her out the door.  She was very condescending and made an insultingly low offer.  You can poke around this website and find plenty of good advice on negotiating a ROW contract that is favorable to you.  If you don't want to have a pipeline on your land, just say no.  If you do, as others have said above, get a good lawyer on your side.  You will only get paid once but you will have that pesky pipeline forever.

Permalink Reply by mark on February 17, 2013 at 3:10am

kris We are currently thjinking about a pipeline that will run on the border of our property things to consider how far a away from your dwelling is it if the money sucks tell them so if it is a money proposel just like the O&G  land man this is there starting point I know for fact that in hanover township beaver county there gearing up to start the pipeline coming along rt 18 it also should be considered how much land you got in the unit because even though everyone benefits from royality checks it is directly proportional to the amount of land you own vs. your neighbors  land which for us makes us wonder how much we want to help the neighbors mega checks vs.our much much smaller land mass just food for thought along with the rest of the comments posted    mark

Permalink Reply by Farmer John on February 18, 2013 at 4:41am

Kris,

  Something to keep in mind if you let a pipeline on your property, is that Pipelines tend to begat MORE pipelines.  Not saying that yours necessarily will, but if someone in the future is looking for a ROW route, they may want to follow that ROW. This could mean lots more money for you, or NOT. For instance, if the NEXT pipeline ROW is for a line that has Eminent Domain power, you MAY get way less than you might for a Gathering  line without E.D.

Once you have become fully informed, then do as you will..  Just remember that what you do TODAY may have consequences far into the future.  Any idea how many people wish that they would have just said NO, when someone had asked them to marry them?  This ROW Agreement will possibly last longer than most marriages, & without any chance for divorce. So take your time, investigate, seek counsel, consider carefully,  and choose WISELY.

 

IMHO

 

 

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