BLUEGRASS PIPELINE row- Have you signed up and for how much per foot/acre?

The Bluegrass landman has finally arrived with contracts to sign.  Although their first, best offer is for about $24 per foot  (this is for one 30 inch line!)  I am wondering what amount, if any, of the good Shale people out there have signed for.  They do off an incentive of +30% if you sign within 14 days, but even so, that best price still works out to just under $24 per lineal foot. This also includes a money for damages and the temporary easement..

I know this is WAY less than a $1.00 per inch foot, like about 80 cents/ inch foot.

 

We haven't arrived at a firm contract and conditions yet, but that part looks pretty good.  Would really appreciate any quotes or confirmed contract pricing if you could.

Thanks in advance.

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Permalink Reply by Jason Grecco on January 13, 2014 at 3:57pm

Brat:

You are a critical point of your decision making.  If you are looking at 1000 feet or more of pipeline, I highly suggest you seek legal advice.  We used Matt Warnock (614-227-2388) and negotiated an excellent agreement that includes many other important aspects besides money.  I would not sign for less $45-50 per foot for one 30 inch line, but it all depends on location.

Permalink Reply by brat on January 13, 2014 at 4:23pm

Thanks Jason, I will keep that number handy.  Might now , they are talking just over 900 feet of line.  I am inclined to think you are in the ball park with the $45 to 50 per foot  fiqure, but I would really like to see closer to the $2.00 per inch ft, don't want to be greedy though, just fair.

Permalink Reply by Jason Grecco on January 13, 2014 at 4:33pm

Brat:

A 30 inch line is at least $1000 per foot to install for the first line in a ROW, but Bluegrass will have a breaking point at some amount.  What is really important is that you don't let them include additional lines (only one per agreement), surface usage, and access roads.  All these items should be covered under a separate agreement.

Permalink Reply by Gusher on January 14, 2014 at 10:42am

Brat and Jason: where are your properties? They have been doing many surveys of my property but I have not seen a contract yet.

Permalink Reply by brat on January 14, 2014 at 10:48am

Harrison cty ohio, nw end

Permalink Reply by Jason Grecco on January 15, 2014 at 8:12am

Harrison, Summit, and Ashtabula,,,,Pipeline was Harrsion

Permalink Reply by James on January 14, 2014 at 11:47am
Brat:
I agree. You should seek legal advice before signing. The current easements Bluegrass has is for more than one pipeline WITHOUT compensation to you. Also, be sure to review easement carefully. They have an area that states they can move the easements location anywhere on your property without your permission (even if you agreed on a prior location). $24 per foot is VERY low and so is $50 considering Bluegrass Pipeline is a Limited Liability Corporation (LLC), and company reps indicated that parent companies Williams and Boardwalk would not sign easements. What if the LLC is is denied insurance coverage for a large incident in the community, and not capitalized to cover damages? I have heard of offers much higher in Kentucky! And with the track record of Williams, you may want to do some serious reviews of that easement.
I am not a lawyer, but here is a link for a handout that a lawyer developed that may help you : (https://docs.google.com/file/d/0Bx8gqaN5fpbvd1ROaHN1WGQtUVU/edit?pli=1)
√ Consult an attorney and other advisors before signing anything.
√ Consult an attorney if a company representative states that the alternative to signing an easement is that eminent domain will be used.
√ Remember: the easement was written for the benefit of the company seeking the right to access and use your property. If you sign a lease without negotiating, your best interests are not being protected.
​√ Granting an easement may have income tax consequences. Seek advice from an accountant or tax professional.
√ Granting an easement may affect your insurance policy availability and rates. Consult your homeowner insurance agent to make sure you are covered for the increased liability.
√ Granting an easement places an encumbrance on your land and may affect your existing mortgage or the ability to refinance your mortgage. Consult your mortgage lender.
√ Granting an easement may affect your property values and will limit your ability to develop and subdivide your property. Check with your realtor about the impact of having a hazardous liquids pipeline across your land.
COMPENSATION
How is the compensation structured? You are not required to accept a one-time payment for the easement, but instead may ask for an annual payments or other manner of compensation.
​What all are you being compensated for? Payment details may specify, for example, compensation for the easement, damages to crops, timber or other products located within or outside of the easement, impact to land value, division between the landowners and the surface tenant, duration, survey fees, legal review fees, recording fees, and taxes on payment. I​n a recent Texas Supreme Court ruling, a jury awarded a Texas landowner more than $600,000 for diminishing the value of his ranch.
​EASEMENT SCOPE AND DETAILS
Who will pay the taxes on the land covered by the easement, and if it is the easement holder, what assurance is there that taxes will be paid on time?
What is the duration of easement? It does not have to be perpetual, but can be limited to a set period of time or can be written to terminate when the pipeline ceases to be used.
​What is the minimum depth of cover? Minimum federal standards require 3 ft to top of pipe, 2 ft if in bedrock, but a greater depth can be negotiated. The agreement can specify that the depth of cover shall be maintain at all times, to address possible settlement or subsidence.
How many and what size of pipelines will be allowed, and what can be transported in the pipeline? The maximum size and pressure can all be specified and limited. If you do not limit the number and size of pipelines, new pipelines could be added without your permission.
What above-ground facilities, such as test leads, markers, rectifiers, casing vents, valves and valve actuators, meter stations and pig launcher/receivers, will be allowed?
Permalink Reply by searcherone on January 14, 2014 at 3:24pm

IMHO opinion a 30 in line should be at least 30 dollars per foot for a beginning talking point.  And 30% more if you sign in 14 days--they are hustling you figuring you can't get good competent legal advice in that amount of time.  This is a high pressure 30 in line and you need a lawyer no matter what the landman says or offers. 

Permalink Reply by Appalachian on January 15, 2014 at 4:42am

Is anyone asking for a an easement rental agreement?  The upfront, one time payment for perpetual usage is ludicrous IMO.  Most likely won't hear too much about easement rentals as there is usually a non disclosure clause.

Also, keep in mind that there is no eminent domain on this pipeline.

Permalink Reply by WranglerRouser on January 30, 2014 at 6:17pm

There is no eminent domain on this type of pipeline as substantiated by this Farm and Dairy Article:

Licking County landowner fights pipeline and appears to have won

Permalink Reply by Kathi Albertson on January 15, 2014 at 7:46am
The title of this post includes the phrase "per foot/acre". Has anyone seen or negotiated a recent ROW agreement that pays by the acre?
Permalink Reply by brat on January 16, 2014 at 11:27am

Kathi,  Bluegrass'  offer is by the acre, so I'm guessing there are hundreds of accepted row's for them at 'by the  acre'.

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