abandonment clause/ to be or not to be?

Trying to negotate a row easement for 3 lines. Gas co wont really budge on the adandoment clause. Havent signed yet because I think this is important and so does my attorney. Not really happy with the price per foot and other things they dont want to put in per attorney recommended. Looks like its go to be all around me anyway. Should I just cave in and sign because its all around me anyway and wait to get my terms. I know they will probably go around me and I will have nothing. But my understanding is this clause is important. They claimed they presented their final offer to my attorney and if i dont sign they move on. I dont know if its a bluff or what or if i should stand my ground. 

can anyone offer their two cents here...thanks agian.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 25, 2015 at 3:04pm

Kit,

   Are  you sure your ROW Contract is complete as far as: Pipeline Content, Pressure, Survey Map of location of lines to be installed, best price per foot? Attorney Jeff Rokisky mentioned $60 per foot or more for each pipeline, the last time I heard a price per foot mentioned on his weekly show.

Have you read?   http://www.farmanddairy.com/top-stories/read-this-before-you-sign-t...

Find this document written by David B. McMahon, a WV Lawyer, on line and read it. After that you will know what should be in your ROW contract. If your ROW Contract doesn't contain most of the items required to make up a good ROW contract, then find another lawyer who knows how to negotiate a good landowner slanted ROW contract.

What Land/Surface Owners Should Know

When a Landman Shows Up

And Wants an Easement/Right of Way

To Put a Pipeline Across Your Land.

Prepared by David B. McMahon • Attorney at Law

Concentrating in Oil and Gas for Smaller Mineral Owners

1624 Kenwood Road, Charleston, WV 25314

Voice/VoiceMail 304-415-4288 • Fax 810-958-6143

E-mail: wvdavid@wvdavid.net

Permalink Reply by Bob Shaw on May 25, 2015 at 10:42pm

The ROW will not improve value of the land, and lasts forever. There are many people who would like for the pipeline to go away and be in your situation. Unless you plan on selling your property or need the money, you might want to hold your position. 

Permalink Reply by mark on May 26, 2015 at 12:28am

mornin kit
termination and abandonment clause very important of course you know that These people are relentless at beating people down resistance to there tactics gets to a person If they have spent any amount of time trying to get you to sign (3-6months)  they are probably bluffing we walked away from the table and they came back and they walked away from the table and we came back our agreement took aprox 16 months to iron out 25 addenda  what a process!!!! MR HALE AND MR SHAW  have made good points Is your area hot for development ? Do you need the loot ?probably wouldn't hurt right ? you have made the investment with the attorney but there is a reason that they are talking to you usually the time they  invest will give you a little heads up on how much they would like to use your property good luck and wisdom and if you can keep  us posted pleez do

Permalink Reply by kit on May 26, 2015 at 12:55am

yes, our area very hot for development......the price they are offering my attn says is half of what we should be getting...50 bucks for 3 lines up front, with no abandonment clause and other basic owner protection provisions. I just don't think that is enough money. My attn says its only half of what we should be getting, but they wont budge. They came to table last week with final offer they say! 5o buck for 3 lines up front no more. and no basic owner protections. If we don't accept they say they will go around us. Which theyprob will and the prob is it will still be around me. I don't feel like i should budge, my husband is saying sign, but not comfortable to sign something like this.

Permalink Reply by Jonathan H on May 26, 2015 at 5:18am

As others have said, unless you need the money now, hold out for more - If I were you, I wouldn't even consider less than $75/foot and would push for more than $100. Lots of people are getting $50/foot for ONE line and they want to put 3 through.

If they can't go around you, they WILL eventually give in - as Mark said, hold out and don't give in to their pressure or claims they will walk away.

Permalink Reply by Michael Allen on May 26, 2015 at 4:58am

An abandonment clause is a very good thing to have in any easement. Ask if the pipeline company has an approved abandonment clause; they all have one. It should read a 24 month "non-use", and that should mean not flowing whatever was the original product was at the time the easement was executed. Abandonment in place is much better than having them remove it after it is abandoned. 

Permalink Reply by mark on May 26, 2015 at 7:55am

kit
50 bucks for 3 lines UUUGGGGHHHHHH  honestly I'd tell them to go home set there alarm clock and come back when they wake-up and realize its 2015 good thoughts from the gentlemen up above jonathan h is correct I will vouch for that for sure I always likened it (negotiating our agreement) as to playing chicken what they didn't know is I wrecked alot of cars in my youth trust your knowledge and trust your gut it worked for us again good luck

Permalink Reply by Michael Allen on May 26, 2015 at 8:28am

For a single pipeline easement 30' in width and 75' of temporary work space during construction should cost $1/inch per foot, so a 16" pipeline would be $16/foot X 16.5'(rod) = $264/rod. Bigger the size of the pipe, the more they pay.

Permalink Reply by Jonathan H on May 26, 2015 at 9:31am

I have heard a rule of thumb that at the moment I don't completely remember - I think it was to start negotiating at $3 per inch of diameter per foot of length and go up from there. For example, by this a 12 inch pipe would be $36/foot and 2 12 pipes would be $72/ foot.

Permalink Reply by rmc on May 26, 2015 at 12:48pm
I remeber the last ROW easement on my farm I told them to come back to negotiatate with me when they where ready to pay.
Other words I wasn't interested in any options period.
Which is how they find the cheapest route by buying options on route A and B and C routes.
Just my opion but sure did shorten up the process
Permalink Reply by kit on May 29, 2015 at 1:48pm

so,this rule of thumb may I ask , does it seem to hold water in monroe county. This company is now wanting to give us 57.00 bucks for 24 inch round and 2 10 inch pipes...with no abandonment clause. lawyer says still real low. So three pipes at 57 bucks, they aren't budging...should i stand my ground. they say they are not offering anything higher to anyone;;;;;;;;;;57 bucks is the highest they went up.......final offer they say...

Permalink Reply by Jonathan H on May 29, 2015 at 5:01pm

I heard it last year - I am sure the companies are using the excuse of lower prices to squeeze land owners every way they can; consider for yourself - is it worth the hassle to you for the total amount they will pay you to have your property permanently affected?

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