Gathering ROW Guernsey, Harrison,& Belmont counties

I know Mark West is putting gathering pipelines in these areas. What are you seeing as far as payment and contract wording. Is there any wiggle room or are they totally saying take it or leave it?

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Permalink Reply by Bluflame on March 11, 2014 at 11:25am

Always wiggle room with gathering pipelines. Nobody makes any money until the hydrocarbons start flowing. The further the well has progresed, the more leverage a land owner has. Of course, you don't get royalties until the gathering lines are complete, so the leverage is not one-sided!

 

BluFlame

Permalink Reply by Philip Brutz on March 12, 2014 at 12:53am
Permalink Reply by Busy Bee on March 12, 2014 at 4:34am
Thanks for the article Phillip .Markwest is currently constructing a facility just north of the County Home property for the Atex tie in . I'm also hearing of a well to be going in on the Hochstetler property which also borders the county home property to the north. I know they are currently running a pipeline behind the county home . Is the pipeline mentioned in the article for another pipeline going through the County Home property ? Does anyone else have any info ? Thanks in advance .
Permalink Reply by INVICTUS on March 12, 2014 at 1:33pm

Here is a FACT Landowners/Leaseholders need to be aware of regarding gathering lines that transport product from Well pads (not the other lines, midstream, etc.):

If the landowner is/will be drained by the wellpad (production units when declared THEN locked in with division orders), they will have little room to negotiate any price beyond what is being offered by the pipeline company.

If the landowner WILL NOT be drained by that wellpad (productions units declared THEN locked in with the division orders) They have LESS room to negotiate price than notated above. This is referred to as 'Foreign gas/oil".

Lots more detail to this but that is the reality. The Pipeline folks more or less dictate the price and often the terms and conditions under which the pipeline will be laid.

First thing to consider: What does YOUR lease read regarding pipelines, or, more likely, the vague language regarding "transport', or "remove", etc .

There is a LOT going on with Pipeline MLP's, companies, etc.  Lot's of money to be made in this line of work.

In my view, and it is a biased opinion: Any landowner desiring to take a line should start the number at $100/ foot.  PERIOD.  But it is an opinion. I'd rather see the landowner get the loot up front.

$15/ft to $20/ft is a joke. If we all could see the hookup fees/transport fees, minimum volume fees these pipeline folks are getting to transport the wellpad products, you'd never see another $20/foot payment again!

Permalink Reply by Robert Bond on March 13, 2014 at 2:51pm

There should be a lot more information available that this I would think.

Permalink Reply by Philip Brutz on March 13, 2014 at 3:06pm

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