pipeline prices

Is it unreasonable to think to expect $100 a foot for a pipeline or is that just a pipedream. A neighbor of mine says that we should stick together and try to get that price. The man from rice energy said that they really do not have pay us if we get unreasonable they can just take eminent domain. Has anyone heard of this happening?

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Permalink Reply by evan on June 25, 2014 at 5:45am
These small pipelines won't have anything to do with eminant domain. It's the big multi state pipelines that can do that
Permalink Reply by Bill Barnaby on June 25, 2014 at 10:21am

I myself have never heard of $100 a foot, and the offers I have heard from rice are god awful compared to a going rate.

Remember, you're permanently letting them rent your land for $20 a foot for a lifetime. A pipeline is the closest thing to eternity you may ever know.

As I always say BELIEVE NOTHING big oil tells you, lawyer up!

Permalink Reply by st. croix on June 25, 2014 at 10:54am

If I was you I would tell him to pound sand, remember you a dealing with a person who lies for living and that company doesn't give a hoot about you or your property.

Permalink Reply by Appalachian on June 25, 2014 at 12:00pm

Get this guy on tape threatening eminent domain use, first step.  Then tell him to pound sand and that your price just went up due to threats & lies.  I would suggest that you tell that particular landman that he is not welcome on your property anymore and to send a new one when they are ready to negotiate and not make false threats.  Eminent domain is *supposed to only be used "for the good of the public", not for an O&G company to make profits.  You stand only a small chance when lines are *interstate, but *intrAstate lines are another animal all together.  Call your attorney.  IIRC even threatening its use may be something that you can pursue in court.  Don't be bullied.  Ask for wheelage if you really want to shine them on.

Pipelines are not fun going across your land.  There is some money available, but after having some real experience with them...it's no way worth it unless you get very very good $.  My experience from the Rexx East a few years back is still ongoing.  Lost 6 acres of hardwood forest, 310' total "workspace" width by 960' length.  Topsoil wasn't properly re-dispersed after construction, problem with the pipe had them digging up major sections less than 2 months after"completion" that has since caused half a dozen slips and more dirtwork and equipment, it's hard to get anyone to address any issues you have with the easement. Once they get your signature and lay the pipe, they become ghosts.  As of right now, what...5 years later, there is barely anything growing on the easement other than some weeds, there are large ruts forming yet again from drainage issues that were supposedly "taken care of" 2 years ago.  Property values are greatly diminished, and I have lost the right of any real use of a 50' wide section of MY land 900' long.  "you can still plant crops"...in what?...shale rock and sandstone?  My crop was already growing there when the Mighty Rexx came to town....trees....they are my "crop".

And now guess what?  That pipeline that we 'had" to have for the good of the public (to bring gas from the west to the east because they had a glut out there and prices fell out) is now being reversed to carry gas westward.  It seems that the principle that was used to aquire FERC acceptance wasn't really all that necessary anyways....well that's just awesome!

Tread Lightly.

Permalink Reply by Mark Y on June 25, 2014 at 1:00pm

So far rice is offering $20 for first line and any additional line $15 a foot with a 100ft. right away on install then a permanent 75ft. after completion. Also they say they will reimburse for loss of crop, timber and whatever else may come as damages. It doesn't seem any of you are to thrilled of having one, I know my neighbor grows produce for a living and they said that they want to use part of the field he uses but it's hard to get your soil back up to where plants grow good especially after topsoil has been disturbed. It could take years and then they may come backup and put another line in and start the process all over again.

Permalink Reply by markkot on June 25, 2014 at 1:18pm

Mark Y

I picked this up from another thread awhile ago.  Looks like it was put out by an atty in TX.  A lot of excellent items to consider for a ROW.  Pay attention to item #1 and look at #10.  Require they use a 'double-ditch' method, which scrapes off the topsoil, then makes them put that back on top for your planting.   Read the whole document to determine what you want to specify in your ROW before you sign.   Good Luck !!   mark

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Permalink Reply by jason irvine on June 25, 2014 at 1:32pm
We received $35 a foot for a 12 inch line. If they are moving gas actions States then they can use eminent domain. Otherwise no. If they use a bigger line you should get more. Make sure you get exactly what you want in the lease.
Permalink Reply by Appalachian on June 25, 2014 at 2:41pm

Eminent domain in-state requires the Company to be a Public Utility.  Does the company meet this requirement?

Also:   “the use must always be a public use, and the land or the interest therein must be taken by the public. Where private property is taken against the will of the owner under the power of eminent domain, it is a prerequisite that possession, occupation, and enjoyment of the property by the public, or by public agencies, is sought and is necessary;”

and...

In addition to being for a “public use,” the Ohio Constitution requires that takings be “necessary.”Similar pipelines are being built in Ohio without the use of eminent domain. As the Supreme Court of Ohio explained in Cooper v. Williams, “[i]t is only this great and common benefit to all the people alike that creates a necessity authorizing and justifying the seizure.”

They have no power.  Negotiate accordingly.

Do some searching.  There was a man in Licking county who was threatened, then, after legal representatives confronted the company, they offered 10x what the initial offer was and ultimately ended up re-routing the line around the property in contention.  The owner did not want the easement crossing his property, even when offered a six figure deal.  It was on the ATEX line, which was Interstate, but for Ethane which is not a utility.  Bluegrass line is in the same boat.

Permalink Reply by Josh on June 25, 2014 at 3:14pm

Mark $100 is not unreasonable, but they will go around you if they find a cheaper way and easier terms.  If you can get a group to stick together on price that would help but things getting funny when you mix it money. 

Permalink Reply by Nancy LeNau on June 25, 2014 at 10:29pm

I still think leasing your land per year for their pipeline is fair.  Look at all the $$$$  they are making every year using your property.  Once you sell the right of way... it is gone...forever.   Maybe we should ask for a percentage of what goes through those pipes ?  That's is what they are paying us for all the gas and oil they are drilling. Sounds fair...  I lease  part of my farm land to a farmer who grows hay every year . He limes the land, reseeds the fields and bales his hay.  Every year  he pays me  and I still own the land.  Does the gas and oil industry help you pay your taxes on the land they are buying ?  I don't think so. You are still paying taxes on the land you just sold to the Gas and Oil Industry.    Just a thought.  I  The Best of Luck to All of you and God Bless.  

Permalink Reply by Josh on June 26, 2014 at 10:00am

you can still lease the land the pipeline is on to the farmer even better!

Permalink Reply by Nancy LeNau on June 26, 2014 at 9:55pm

Josh, Great thought.....   HA HA HA .....Thanks !

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