anyone negotiating with access midstream

I was approached by access midstream about a pipeline. they are offering $15 a foot. I know this is low,but can anyone tell me some true rates?

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015334grltd9mPermalink Reply by 015334grltd9m on August 30, 2014 at 9:40am
Location?
Permalink Reply by The Rooster on September 22, 2014 at 3:32am

Harrison county,ohio

Permalink Reply by evan on August 30, 2014 at 10:51am

I. Was approached by Enlink. Not looking good   15 a foot also.   75 ft wide.  Possibly multiple lines one time fee.  I won't doit for under 100 a foot  and I'm creating my own easement agreement. They can ask me for changes.  Been taken to many times  

Permalink Reply by evan on August 30, 2014 at 2:15pm

I remember fang f fang. I'll check that out. Thanks.  I like the thought of annual rent and wheelage. I'm sure that will be a no way but I don't need the hassle anyway

Permalink Reply by Joseph-Ohio on August 30, 2014 at 2:51pm

Just looked for Fang F Fang and got the GMS error message 'Page Not Found' .

Don't know where to point you - Fang's the man.

Maybe it's not being done that way anymore.

Good luck brother.

Permalink Reply by MJ on August 30, 2014 at 3:09pm

I got a feeling Fang is still here under a different name. Have a good Holiday guys!

Permalink Reply by Joseph-Ohio on August 30, 2014 at 3:19pm

Any ideas on his new aka ?

Permalink Reply by Joseph-Ohio on August 30, 2014 at 3:13pm

Remember Fang ?

He talked about a rate of $2 per lineal foot per inch diameter as I remember.

12" d. = $24 per lineal foot of run

10" d. = $20 per lineal foot of run

I took that to mean to cover the installation only a part of a landowner's compensation because as I also recall he spoke about an annual rental fee / lease.

He also spoke of 'wheelage' payments as another form of landowner compensation for volume of foreign gas traversing your right of way.

Can't recall if any of these methods were customarily stand alone or compounded myself right now.

Look up his page and check out his comments.

Permalink Reply by The Rooster on August 30, 2014 at 7:22pm

I think 75- 100 per foot is reasonable now days.

Permalink Reply by Barry D on August 31, 2014 at 3:11am

buckeye,

There must be three of four dozen issues to deal with when negotiating a ROW agreement. It may be prudent to have a knowledgeable attorney assist you. But it is a good idea for you to learn as much as you can about the issue, and this site is a great resource.

The following are my thoughts.

First, do you really want this on your property ? I've seen landowners turn down huge sums of money because they just didn't want the pipeline on there land. So that is an option. You should also understand that you can ask for whatever you want but the company doesn't have to agree. In many instances it has the option to go around you, and will. So you have to decide how important each issue is to you.

Compensation is probably the least of your concerns, but it seems to be everyone's favorite subject.

My preference would be to treat this as a lease and receive payment per year. The lease would not be permanent and renewable every ten years. The idea of a yearly payment is not uncommon out west and has been granted here in the Marcellus and Utica plays. The companies hate the idea but may accept it depending upon the situation. At the very least you should be paid $2.00 per inch per foot. For example: a 36" line X $2.00 = $72.00 per foot.

Description of easement - this should be performed by a licensed surveyor and you get final approval of the siting of the line.

Type of easement, temporary and permanent. The temporary easement is for construction and should be no wider than 50'. The permanent easement - 25'.

Limitations - One pipeline only, limit the products to be transported ( if you are told this is a natural gas line then limit the agreement to that, no surface structures (see more later).

Surface structures should be a separate agreement ( compressors, pig launchers, meter stations, pumping stations etc.

Limit points of ingress and egress otherwise they will be running all over your property.

Damages - this should not be limited to initial construction, disruptions in the future should also be paid for. Damages should/could include- lost crops, removal of trees (the price to be determined by a licensed professional of your choosing), removal of fences or structures and in general any changes to the property.

Your rights of continued use need to be stated.

Limit the right of assignment - no assignment can be made without your approval and that approval can be withheld. Any assignee must be bound by the terms of your original ROW agreement.

Set a timeline - 60 days for construction, up to six months for final reclamation. And set penalties for failure to comply.

Reclamation - this clause needs to be in depth to assure that the contour of the land and proper drainage are returned to your property. This should include replacement of tile, ditches and swails for drainage. You should also demand re-seeding and you get to pick the type of ground cover. Certain grasses are not good for some farm animals.

Restriction of activities- workers are only allowed within the ROW, nowhere else on the property.

Proof of insurance- Workers Comp, Health Insurance for workers, Liability, Business and Auto, Environmental Liability, ask for proof of all taxes being up to date,

Indemnification clause- hold you harmless from damages, losses and legal actions due to activities of the company and subcontractors. Make sure this includes mention of environmental issues.

Subcontractors- must have proof of insurances etc.and be held to all terms of the ROW agreement.

I'm tired of typing,hope this gives you enough to get started. There are literally dozens more issues to deal with. Take your time and get professional advice

Permalink Reply by evan on August 31, 2014 at 4:20am

That was a huge help. Lots of info.  Thanks

Permalink Reply by The Rooster on August 31, 2014 at 4:26am

thank you! the contract they gave me was a joke. they pretty much would have controlled my whole property under and on the surface..

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