Let's Talk Pipelines!!!!

I have been approached by a pipeline company called MasonDixon, that of course is affiliated with CHK. They wish for a right of way through my property to service a pending drill site and no doubt others in the future. I have initially said no!  However, I have neighbors who will also have their chance to supply this ROW. They offerred the standard 2-page all in their favor lease with a one time $15 per ft easement payment. I have downloaded the ALOV pipeline agreement and think highly of it. Will use that as a starting point and offer it to the neighbors. Now....What I need from the listening audience is current payment levels received. This proposed 24 inch pipeline (50ft ROW) is in Columbiana County, appears headed to the new Kensington Plant. I know there has been much said about pipelines on this site, I have viewed most of it. But most is now old news and I would prefer the most current. If you are able to assist with any pertinent info it would be greatly appreciated. First hand knowledge would be great.   

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Permalink Reply by Lance Nimmo on January 28, 2013 at 3:26pm

It all depends on how bad they need your property.

Permalink Reply by Lance Nimmo on January 29, 2013 at 1:53am

That sounds good, but Shell actually has 3 lines planned per one that goes into use. Everyone needs to stay on the same page for that to work.

Permalink Reply by mark on June 8, 2013 at 12:56am

in response ;' THEY'LL GO AROUND YOU' listen to fang we just met with them and quite frankly they did not know particulars of even the size of the pipe one min.it was 12" next it was 20" proposed offer was the dismal $15 afoot no comment from us we'll worry about the route first then the addenda and finally about the money tried that approach with neighbors and they are being tight lipped about it which of course is there business probley signed a confidentality clause LOL I feel that if they go around us so be it its there loss and our gain heres one for you ANYONE ever hear of 1200 PSI as being low pressure I thought the ceiling for low pressure was aprox 300 PSI  any thoughts thankx  mark
p.s. I don't think they can go around us but it would be interesting!!!!!

Permalink Reply by Joseph-Ohio on June 9, 2013 at 4:46am

Has anyone successfully negotiated an annual rental fee (on top of the $?.?? per inch pipe diameter per installed foot of pipe) and / or what Fang has termed elsewhere here as a ' Wheelage ' compensation component ?

Permalink Reply by Farmer John on June 9, 2013 at 8:29am

Mr. Joseph, I have.  Please review comments of Feb 15, 2013, on other thread topic:

 

http://gomarcellusshale.com/forum/topics/pipeline-row-compensation-...

Permalink Reply by Joseph-Ohio on June 9, 2013 at 11:48am

Thank you kindly Sir.

Very good to know.

Still wondering what percentage of the Pipeline ROW providers / landowners are blessed with such a lease feature ?

Permalink Reply by Farmer John on June 9, 2013 at 1:45pm

Good question, Mr. Joseph.  I do NOT know, and suspect that the typical Industry Landman would claim that it's unheard of or very,VERY rare. The truth is that it has been offered as an option to an entire group of Landowners along the Laser Pipeline route -- The Windsor Group. Here is a link to an EXCELLENT source of information about it on another forum. (I found tons there on pipeline ROW)

 

http://www.naturalgasforums.com/smf/index.php/topic,5070.msg253296....

 

I believe that it is good to know what terms (and I do NOT mean just money) others have received for pipelines, if only to realize that when the Landman tells them they never HEARD of such a thing, then they can set him straight.  Still, just because someone else got something is no reason to think that they will get it, neither easily NOR even with lots of effort.

 

What landowners need to do is to  learn  the nature of a ROW transaction, the general workings of the process, the rationale behind a Landowner's determination of valuation, compensation amounts and forms. Above all, if you are doing any of this yourself, then learn & put into practice negotiating skills.  Remember, the Landman is NOT your friend, and he has likely done this MANY, MANY more times than you.

 

 

Permalink Reply by Joseph-Ohio on June 9, 2013 at 1:53pm

Thank you once again Sir.

J-O

Permalink Reply by mark on June 9, 2013 at 11:56pm

re; joseph-ohio  we are actively going to pursue this for us it will be a deal breaker (annual rental fee )  imagine they will pay you 1 time for damages and then you'll let them come back and tear it up again youl'l get zippo as they install a 30"high pressure line and probley as the infrastruture develops they'll come back again and again us (the landowners) will get zippo we just cant have that  hey see what happens    mark

ps can anyone tell me if 1300psi is considered low pressure again I thought low pressure  was 300 psi or less            thankx

Permalink Reply by Joseph-Ohio on June 10, 2013 at 12:06am
Can't see anyone calling 1300 psi low pressure myself !
Good luck Mark.
Let us know (if you can) how it works out.
Permalink Reply by mark on June 10, 2013 at 12:56am

J-O I'll let you know before we sign confidentallity agreement  lol geeeeezz might get kicked to the curb who knows     mark

Permalink Reply by Michael Allen on June 11, 2013 at 7:52am

I've never seen a confidentiallity clause work in real life. Someone either talks or lies and points their finger at someone else. The better way is to have a seperate break down for easement payment and damage payment that would include crops, road access, storage area, staging areas, creek crossings, etc, and that way you could safely say you were paid $XX for your easement and don't mention the damage payment. That's the way I try and combine the two but only tell of the easement payment amount if asked. The bottom line is that 99% of landowners will tell someone if asked whether it be their neighbor, family member or close friend.

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