Approached for Pipeline East of Old Washington

I was approached by Mark West about a pipe line that may be coming through my property just east of Old Washington....It's a 20" gathering line. I gave permission to do a survey on my land...They were talking about 2 bucks an inch....I think that's a low ball figure since I'll loose use of the land and bring my over all property value down. I was planning on building a house over there when the royalties start to come in. What is the average price paid for pipe line right-of-way? I have about a thousand feet they want to use. Any info is appreciated.....

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Permalink Reply by Bill Barnaby on November 18, 2013 at 12:27pm

Most people say to charge $1 per inch in diameter of pipe, so you should get paid $20 a foot for the pipe.

I imagine others can chime in.

Permalink Reply by tater on November 18, 2013 at 2:45pm

I have to have a least $45 a foot with a 20 foot ride away no other or go around

Permalink Reply by Tim Tarr on November 19, 2013 at 6:11am

From personal experience, I found MWE to be much more willing to work on route than $ per foot. Only way I could get them to forget about the route up the middle of Us was to tell Them it was 4X more $$$. Be very careful about access (ingress and egress) and Facilitates allowed.

     Get competent legal advice. You may be able to get reimbursed for legal advice when signing.

Permalink Reply by FairMktValue on November 19, 2013 at 12:40pm

http://gomarcellusshale.com/forum/topics/pipelines-in-butler-county...

Some good info and discussion in this thread, check it out.

IMHO pipeline ROWs are way more trouble than they are worth. 

Upfront you need to figure how much it bring your property value down. Look at lose of use - can't build a house on top of it - how close would you want to build a house to it. Look at the 1,000 ft of ROW and determine how much acreage that ROW actually affecting. Put a number on that - bettin its waaaay more than the 20 bucks a foot.

Gotta figure that line is gonna be there essentially forever. Somebody makin $$$$ on that line for a long time. One time upfront payment don't get it in my opinion . Gotta get some "wheeledge" or yearly rental or it make no sense to me. I may be crazy but 10-12 bucks a foot/yr sounds fair to me. 

Good luck trying to get any of that. Unless that is the only way they can go - aint gonna happen.

Pipeline ROWs have way more impact that a gas lease (non-surface anyway) Do your homework well and get legal advice.

Cheers

Permalink Reply by TreeMom on November 19, 2013 at 12:48pm
You can certainly deduct the legal cost from the money you get for tax purposes.
Permalink Reply by Chris on November 19, 2013 at 2:15pm
Haha markwest will not do wheelage. Being realistic, Markest usually pays flat rate per foot, instead of per diameter of pipe, which is better if they come through and put a few 6 in. lines
Permalink Reply by FairMktValue on November 20, 2013 at 1:45am

Haha markwest will not do wheelage

Not unless they absolutely have to and then you would never hear of it My point exactly - without some continuing renumeration - it just ain't worth it.

 

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