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 lance on January 5, 2014 at 11:51am

Hi, I was just gonna say that if they run a 20" trunk line with 4 other smaller lines beside that. Are'nt the smaller ones coming from wells? And if that's the case maybe we'd have a better chance of being included in a drilling unit, and if we get into a drilling unit we'd have a very healthy monthly "Mail Box Money" check. I heard our Utica gas and oil is rich, very rich. Correct me if I'm wrong, but someone was talking about 1000.00 per acre per month? Now if that's true, for me it would mean that my great grandchildren could be spending this money after I'm gone, (I'm only 58) but how cool would that be? I could live with a ROW that allows me and my children's children financial freedom, some thing we all would be coveting if we didn't have this blessing...... Yes there is the down side but just make sure you have a good lawyer help you and it's possible to have a very nice experience with a ROW, use it for a 4 wheeler trail and berry pickin come on, I see some ROWs that look better now than before the pipe line and if you got a wood burner you'll have plenty of extra fire wood... I guess it just depends on how look at it. For me, the glass is clear full and running over. I hope they just hurry up and make it happen! Big Blessings, no Wammies, come on....    

Permalink Reply by Billy Bob Meeker on January 5, 2014 at 12:30pm

Lance,  you're getting the cart before the horse.

I seriously don't believe that the location of a well will be determined by the location of pipeline ROWs.  A well's location will be determined by the subterranean geology that will yield the maximum and most efficient production of gas from the shale.  No driller will locate a multi-million well based on the location of an existing nickel & dime pipeline ROW.  Drilling units and pipelines will follow the well locations, not vice versa.

Permalink Reply by lance on January 5, 2014 at 12:42pm

OH,,, OK Thanks,  Billy

Permalink Reply by kris miller on December 27, 2013 at 4:56am
Whoa pump those brakes 10 bucks a foot that's robbery. Temp above ground 20 to 35 a foot underground 40 to 65 and don't budge. Also make sure exactly what they want to do like valves pig launchers etc. I had a clause put in my contract that stated when the line becomes dormant it becomes mine and if they ever sell the pipeline I get to renegotiate. I'm sure I still have pics if you'd like message me and I'll send em to you. I have 128 acres there now about 4,000 feet of pipeline on my property it took about a year to complete. They will make the right away 75 to 100 feet and they take it. No permanent structure can be built on line that's why I had the abandonment clause added and yes I'll probably not see it go dry in my lifetime but you gotta think down the road. Remember it's your property tell them where you want it they'll try to go cheapest route . They wanted to run it through the middle of my field I refused and it got laid next to road I'll never build there. Then there are the access roads they'll need to build another reason I wanted it next to road. Be prepared for a major construction zone it's nothing to have 3 cat d6 bulldozers and 4 cat 336 excavators running morn til dark. If you treat the guys right they have no problem leaving keys in equipment he'll they gave me a cat key pushin brush with a d6 is a lot of fun. Anyways 10 a foot is robbery the lowest I've ever seen is 25 a ft in my area and he has serious buyers remorse. Remember it's your land not theirs and it's gonna be there forever FOREVER !but honestly from reading your post this will be a nightmare for you because they will be all over your place and your d way will be a highway
Permalink Reply by Kathi Albertson on January 6, 2014 at 5:26am
A question for those of you currently negotiating a ROW. Is there any wording in the contract differentiating the permanent ROW versus a temporary work space ROW? Kinder Morgan will be replacing a 36" line on my farm, but, due to the original ROW agreement in 1956, they only have a 30 foot permanent ROW. I have had some good suggestions on another thread but wonder what the current ROW offers are saying about temporary work space. So far no word from Kinder Morgan as to what they are offering although work is to be done in March.
Permalink Reply by Billy Bob Meeker on January 6, 2014 at 5:47am

Kathi,  I've seen text similar to the following in some draft documents:

Description of Easement Area

This lease agreement includes a 25 ft. wide temporary workspace construction easement immediately adjacent to, contiguous to, and parallel to, the ROW, to be used to facilitate construction of the pipeline.  The temporary construction easement is to be shown on the engineering drawing Exhibit C.  This temporary construction easement shall terminate and revert to Grantor within six (6) months after the pipeline is placed in service. 

  • The ROW easement will run along a line that is described particularly by meets and bounds in a legal description prepared and stamped by an Ohio Registered Surveyor in good standing, as set out in Exhibit B attached hereto.  
  • The ROW easement, including the pipeline centerline and the temporary easement for construction, is further shown on an engineering drawing prepared by the Registered Surveyor attached hereto as Exhibit C and made a part of this agreement.
  • Right-of-way length is measured to be  ____________  actual linear feet of the pipeline centerline based on an engineering survey conducted by an Ohio registered professional engineer or surveyor.  Projected dimensions are not to be used in this length calculation.
  • The lease right-of-way shall not exceed 25 ft. in width and shall contain only one pipeline not to exceed ___________ inches ( ___") in nominal pipe diameter.
  1. Temporary Easement for Construction.  During the period of construction of the pipeline, the easement ROW shall include twenty-five (25) feet on each side of the line of easement, thus constituting a temporary easement fifty (50) feet in width. 
  2. Pipeline Easement. The pipeline easement ROW which shall continue following completion of construction, shall be twelve and one-half (12 ½) feet on each side of the line of easement, thus constituting an easement ROW width of twenty-five (25) feet.
  • No portion of the temporary or permanent ROW easement shall be within ______ feet of any house, out-building, domestic water source, or septic system.

The preceding text is for reference only and not from any specific legal document so make sure you get a qualified attorney to prepare your agreement to maximize your protection.

Permalink Reply by Kathi Albertson on January 6, 2014 at 6:34am

Thanks Billy Bob.  This is helpful.  Any info as to whether or not this kind of document has been used in any of the recent ROW agreements? If so, is the temporary easement compensated at the same rate as the permanent ROW?

The above document is similar to that signed in 1956 by the previous owner of my land. I am grateful for the termination of the temporary easement clause in the original ROW since I can now negotiate a new temporary construction easement.  Should I ever get pressured into another interstate pipeline across by land, I will insist on similar language. Still wondering what others are currently being paid for a temporary construction workspace  easement. 

Permalink Reply by Mark McGrail on January 6, 2014 at 2:01pm

Kathi,

In ROW agreements that I have seen recently the per foot up front payment includes both the permanent ROW and temporary work area. There is no separation. In my opinion you are owed the going rate per foot for a new ROW.

The minimum I have seen is $2.00 per inch of pipe X the length. A 1000' ROW for a 24" pipe would mean a payment of $48,000 to you. You could also ask for a per acre payment at the going rate in your area (which is somewhere between $6,000 - $7,000 an acre; 1000' X 45' ROW =  45,000 sq ft which = 1.03 aces X $7,000 per acre = $7,210.00

Just substitute the figures that fit your situation. Length X Width divided by 43,560 X the per acre bonus in your area = how much the company should pay you. Or make a deal that satisfies you.

Mor3e important are the surface issues that need to be dealt with. If you have a bad agreement no amount of money will cover the problems a bad agreement will cause.

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on December 31, 2013 at 6:33pm

Christmas money! Ho-Ho-Ho...wait until next year & see what happens. YOU need to do some homework & figure out for yourself WHERE it is that they are wanting to go to...HOW important 'your land' is to them.

***It's YOUR LAND!!! Never forget that (or 'feel bad' or wishy-washy about that - THEY, AND your neighbors, DON'T...so be WISE). Do right by yourself - there's NOTHING wrong with that, don't get intimidated (or stupid)....

Here's the bottom line...yes, do seek a good lawyers advice, BUT - YOU (yes, YOU...you, yourself & I - as in YOU) need to do homework for yourself so YOU will 'know what you know' - YOU are your own 'best defense'.

WHAT do 'they' want?...WHY?...YOU need to research'limitations' that YOU want to have IF YOU decide to 'let them' have rights to YOUR LAND. 

----------------------------------

Susan, you are a woman, so you'll understand this better than a man - it's like a 'relationship'...YOU are being 'pursued' here. YOU have what they want (but it ain't under your skirt - *IT'S BELOW YOUR FEET!)...does THAT thought help to give you a better perspective on this. It's definitely along the same lines....

This is a 'courtship'...you feel them out & figure out for yourself IF 'they'll treat you right'...THEN & only then comes the engagement (contractual agreement read through...) & 'MARRIAGE'. The 'marriage' analogy applies here - except with THIS - there's NO 'divorxe'!!! *KNOW THAT.

The day you say 'OK' & put your John Handcock on that 'dotted line' - it's all she wrote!!! You're HITCHED - ***FOREVER***. NO - 'I don't think I like this' & want O-U-T...no, no, NOPE. YOU'RE DONE! OVER! (SO - YOU better be SURER than SURE - more so than 'marriage'!!!)

-------------------------------------

*Texans have a saying: "Gaswells are TEMPORARY, but *PIPELINES  are ***FOREVER***!"

Like I said before - YOU will ultimately be your own BEST friend - or WORST enemy to yourself. Knowledge is power.

There is MUCH to learn, but if they are 'after you' - it is worth your time. *As one light lights another, nor grows less - so nobleness enkindles nobleness. Again, BEST advice to yourself is this:

*KNOW WHAT YOU KNOW WHAT YOU KNOW. - THAT WAY, if/when you DO seek 'council', you'll KNOW what is being said, what is being proposed, and at least have a better understanding overall - for yourself...so YOU won't just have the wool pulled over your eyes.

Don't 'outsmart yourself', just BE SMART for yourself. *You'll do fine, go on now...READ & be wise!

Permalink Reply by INVICTUS on January 24, 2014 at 11:55pm

To all the folks who are now thinking about O/G pipelines of whatever sort: 

These people who negotiate these things (including the brokers they hire to buffer themselves from the Landowner) do, in my view, play a lot more than hardball: In my view at what I've seen first hand, I now believe they regularly step over the line into what is likely criminal behavior.

'Nuf said.

For the moment.

Invictus.

Permalink Reply by Nancy S on January 31, 2014 at 12:52am

Does anyone know anything about creeks and EPA requirements when the property has surface water? Like how close to it can they come, and can they run parallel to a creek? MarkWest wants to cross my land, but is telling me they can't put it where I would need it to be in order to do a contract.  I have a creek .  I'm concerned that if I let them put it in an easier route where they want it and don't have any EPA issues, it will virtually cut my land in half , and I would think that would make it less desirable when I sell it down the road.  Who would want land with a ROW running smack down the middle of it.  I'm in Harrison Cty. 

Permalink Reply by Philip Brutz on January 31, 2014 at 1:35am

Nancy,  MarkWest horizontally drill 1,200 feet under my wetlands.  They didn't even drive across it.  Here is a good overview of pipeline installation across wetlands:   http://corridoreis.anl.gov/documents/docs/technical/APT_61034_EVS_T...

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