PIPELINE R.O.W.

I have been dealing with MarkWest about a pipeline ROW... For a while now... I like the idea of helping with the oil and gas infrastructure but with this deal my land would be tied up for 3 years. They have 3 years to build the pipeline or forfeit the agreement. In this unique situation the original rt. goes across a neighbor who is hesitant to let the pipeline come thru but has recently agreed to talk with them... I was the alternative rt. around this neighbor... So, should I sign an agreement giving them 3 years to do something or should I not sign and keep my land freed up for potentially another outfit to build a pipeline?  Lance  

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Permalink Reply by INVICTUS on March 1, 2014 at 10:17am

Lance, Never, never, Never give an option away. All options should be paid for.

You are just giving them something for free.

They will keep you in their back pocket while they back deal with your neighbors.

You know this!

They treat you as their backup plan and will dump you the minute they get what they really want.

If they don't pay you for an option, what makes you think they won't pay you correctly for a pipeline when installed? I'm telling you, it is happening.

IMO. the pipeline Brokers and wheeler-dealers are on the same level as, well, fill in the blanks.

This is first hand personal experience talking as well as ongoing pipeline issues with neighbors.

Permalink Reply by lance on March 1, 2014 at 2:01pm

OK, I didn't know about "options" and that you could get money just for the option to have the ROW.... Thought my lawyer would advise me on that.... So, MarkWest pays for the 3 year "option" up front? How does that work?   

Permalink Reply by Josh Willis on March 3, 2014 at 12:24pm

In our case MW paid us half of first line upfront and had one year to exercise option (pay other half) if they did not pay within the one year ROW went away and we keep the money. If they did pay money, which they did, then ROW agreement is in full effect for whatever you agreed to.

Permalink Reply by lance on March 3, 2014 at 2:14pm

OK Josh, thanks man... I guess every deal is different depending on how bad they need ya.... Right? It would be nice to have 1/2 up front that gives them incentive to move forward with these things... I haven't heard anything since I instructed my attorney to say "no" to signing anything with out a definite plan to use my land....

Permalink Reply by WranglerRouser on March 18, 2014 at 12:01am

Below is a link to a fascinating article in Pennsylvania Outdoor News about a report presented by the agency’s chief deer biologist, Chris Rosenberry.  The article points out an interesting correlation between a buried pipeline and a doe's reluctance to cross the pipeline as determined by a large set of GPS data points from the radio-collared deer.  Any landowner who also hunts or generally enjoys the wildlife therein should also consider the possible implications this information might mean when negotiating a ROW or easement as part of the "damages" associated with such an agreement.  Food for thought.

Why didn’t the doe cross the pipeline?

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