Western Land Service have asked me to sign an option( 5 year) for a permanent right of way from Southern Oakland township Butler county, Pa. to Renick well site in Center Township ( where a proposed compressor location will be ). They are willing to pay the outrageous sum of 200.00 US dollars for this option( sarcasm ). The actual pipeline agreement is even worse. Has anyone else been contacted? Will any of you guys or gals provide your comments about this? I'm not that naïve to even consider signing these documents as they are proposed. Just trying to decide if it is worth my time to hire an attorney to make  changes or is Western Land Service trying to flip these right of ways to the highest bidder.

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I would assume they are working for Rex.  Did they say anything different?  How much will they pay you per foot for the ROW? I heard Rex was paying $45 per foot last year if they exercised the option.  

a few years ago when i signed a lease they were representing Hilcorp

Thanks Geo5 and M.A.B. Any idea what I should price the option agreement per year?

Western is contracted by Rex to obtain ROWs for pipeline option agreements as well as leases. We were approached three months ago for a ROW option for a pipeline from the Williams well in slippery Rock. As I recall the $200 was a one time signing bonus so to speak and the going rate was $35 per foot if they exercised the option. Since Rex let our lease expire we did not sign. Regardless, the standard ROW option agreements are written in favor of the gas company. I'm sure I don't have to say it, but consult an attorney if you are even considering signing anything.

Thanks Michael motorcycle, appreciate the valuable information.


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