Need Help with Pipeline Lease

Hello,

Last night a guy from Oxford Oil came to my house and handed me a contract to put a pipeline through my place in Guernsey County.  He acted like I should just sign it because "it would get me Christmas money." They are paying $10 a foot.  I don't know anything about piplelines....

What I want to know is, can they force me to do this?  I asked him what would happen if I said no.  He hemmed and hawed and said that they would have to go around and it would be a long way. He stated that I am the "last piece in the puzzle."

$10 a foot does not sound like it is a very good deal either.

Also, I skimmed the contract and basically it gives Oxford (or whoever) the right to have regulators, compressors, etc. on my land.

Before I go to an attorney, does anyone have anything to say about this?

Sue

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Replies to This Discussion

Permalink Reply by JK on December 12, 2013 at 2:14am

I do know first hand they will go around you as I was told by the main guy I am working with on another matter.  But, if your ROW is the quickest and best way for them then they will be more apt to move up on their price. 

Negotiations are always the word of the day and they expect this.

How many feet do you have?

You do need an attorney quickly.

There are many aspects to consider as you know and some you may not know about.

Once you make your decision it will move fast.

There are many discussions on GMS about this very subject so quickly do a search.

Good luck!

Permalink Reply by David Cain on December 12, 2013 at 5:40am

Susan,

 

You definitely need an attorney (and get Oxford to cover that expense as well).  The rate I have heard most often is $1.00 per inch of pipeline per foot per for each pipe that they install plus damages.  So if they are installing one 12 inch pipe and another 20 inch pipe for 1,000 feet then you should get $32 per foot x 1,000 feet  which equals $32,000 plus damages.  Damages would include timber, crops, etc.

 

One thing you need to remember though is that this is not a lease it is a right of way (ROW) which is basically forever!  And I would refuse to let them install anything above ground (compressors, pumps, etc).  Some of these things are extremely loud and you need to get this in writing.

 

You need to make this worh your while.  Remember that you will have to pay the taxes on the land occupied by the ROW for as long as you own it.  And you won't be able to build on it, or plant trees on it or put a driveway on it.

 

Be very careful when dealing with Oil/Gas companies.  Your best interests are not their priority.  I can't urge you enough to get a knowledgeable Gas/Oil attorney before you sign anything.  They are worth every penny that they will charge. You will get some very good advice on this site.  But in the end, it is your responsibility to do everything you can to protect your self.

 

Good luck,

Dave

Permalink Reply by Susan A Tippel on December 12, 2013 at 6:36am

Thank you, David. And thank you to everyone who brought up points I hadn't thought of and helped me confirm my decision not to do this.

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