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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Permalink Reply by Susan A Tippel on December 12, 2013 at 11:04am

Thank you, this is what I needed to know.  I'm just going to send them packing.

Permalink Reply by Gas Patch Native on December 12, 2013 at 10:21am

Susan, $10/ft isn't much of an offer. In my situation, the $1 per inch per foot thing is only good if the inches add up to over at least $15/ft, I settled my ROW for $24/ft (24" pipe) but if it was a 10" line I would have asked at least $15/ft (it seems to be the lower end of the spectrum). Remember it is a negotiation, and if both you and the company are willing to work together, you both might be happy with the outcome. they can put in a adandum that addresses everyone of your concerns if they want to (no aboveground stuff, notification before entry, number of lines, etc.). If you really don't care about receiving any of the money from their initial offer, tell them no. If you want a certain amount of money for it, tell them that's what you want, they can either take it or leave it. By them saying your the last piece of the puzzle, they pretty much tipped their hand to the fact that your property is very important to them. I negotiated my right of way with a consultant, but depending on how comfortable you are with the contract you may not need to. However if you are in anyway intimidated or confused by the language you NEED to get some legal advise on it.

Permalink Reply by Josh Willis on December 12, 2013 at 11:08am

Susan, If you are concerned about the traffic and mess definitely don't do it. Pipeline is being installed on my property right now and it is a mess, plus you must constantly babysit them to make sure they are following the agreement. Like someone else said, unless it is a life changing amount of money it is not worth it.

Permalink Reply by Lance Nimmo on December 12, 2013 at 11:26am

I don't like the word "compressor"  in your agreement. You don't want one of those little nuggets on your place that's for sure...

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 12, 2013 at 11:27am

Yeah, if you're getting a compressor station on your property you better make enough cash on the deal to take a few vacations a year.  Those things are less-than-pleasant.

Permalink Reply by Susan A Tippel on December 12, 2013 at 12:32pm

Yeah, I stopped reading when I came to "compressor."  Should anyone sign this document, that needs to come out.

Permalink Reply by Tim Silker on December 17, 2013 at 10:43am

Sue,

I had a quick view of your post and the subsequent replies - there is MUCH more for you to consider in regard to this right of way agreement. I am in the business and would be happy to speak directly to you, no strings, no fees, no obligations. I live in this area and have for the past 30 years; I am not looking to gain anything. 

Not sure how this site works, but if you can friend request me, I'll be happy to discuss this privately.

Tim

Permalink Reply by John on December 17, 2013 at 11:18am

Sue, I don't know if you have seen an attorney yet, if not; I deal in pipeline for landowners on a daily basis.   Do not sign that agreement! It is not a good deal. I do not charge the landowner any fees for helping with pipeline. If you are interested, you can visit my website and send me your contact information.  I am close to your area, and have helped many landowners form PA, WV, and Ohio.

John

www.greenearthenergyusa.com

Permalink Reply by lance on December 17, 2013 at 4:30pm

Hi Sue, I too am in the process of negotiating a pipe line agreement but with Mark West... I thought it best to consult with an attorney. The rate of compensation varies but I know 10 dollars a foot is a low ball number,  I'd ask for twice that at least and get a lawyer... The one I have is from Guernsey county and knows all about gas and oil deals...She tacks on her fees on top of what she gets you so in a sense she gets the company to pay not you...They need to use 1000ft of my land and offered me 15.00 for the first pipe and 10.00 a ft for each subsequent lines and there are at least 4 others to be laid in the same ditch...I was told to ask double that at least and they will pay....The down side is you loose use of your land forever and are bound to that agreement. So your property value goes down...But, the upside is you are helping lessen our dependence on foreign oil and increases your chances of getting into a drilling unit and royalties paid monthly...Depends on what you want I guess...Lance 

Permalink Reply by deutchen on December 17, 2013 at 6:47pm

Lance, I've also been contacted by Mark West. They offered me $15/lineal foot of pipe. I said I wanted $40/ft. After 2 weeks I heard back from them and they said they would pay $40 for the first pipeline. But they wanted a 100 foot right of way and be able to put in a maximum of 5 pipelines. They said they'd pay $40 for the first & $30 for each additional pipeline. I've decided I'm not going to sign  though. If they want the option to come in whenever they please and add another pipeline in I might as well forget about ever having cattle on my land again or selling it for anything but a fraction of what it's really worth now.The price they'd pay me would not come close to compensating for the loss in the use of the land or for the loss in land value due to them possibly coming in, tearing things up every couple of years for who knows how many years

Permalink Reply by lance on December 17, 2013 at 7:03pm

Are you in Guernsey county too? I'm in Wills township on fairground rd....Thanks for the info...I was gonna ask for 35 and 25 but I like 40 and 30 better. I only have 21 acres and no cattle...I grow berries.. I just started a berry farm last year when I got my sign up bonus from Shell. I thought you could still run cattle on the ROW. Land is hard to buy in our area now if you do find some it's without mineral rights of course...Yes it is a major inconvenience for a farmer to deal with construction when you have cattle...

Permalink Reply by deutchen on December 17, 2013 at 7:15pm

I live in Belmont County. One reason why they might have agreed to pay the $40/ft. I asked for is they don't have any choice to get to where they want to go. I would think this would happen a lot where everybody else signs & one person throws a monkey wrench into everything. I hate to be that way but I just don't think it would be good for me to do it.``

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