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 Kathi Albertson on January 16, 2014 at 3:20pm
Thanks Brat and James. Kinder Morgan wants a 75 foot temporary easement to replace a 36" line that crosses our land. That easement will equal a little more than 5 acres. It will be interesting to see what they offer.
Permalink Reply by James on January 16, 2014 at 1:59pm
Hearing offers of $60,000.00 an acre and when they question that offer, Bluegrass has DOUBLED it. So $120,000 per acre. More to consider before signing:
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 maintained 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? A handout on the Bluegrass website illustrates various above ground activity and equipment, including a aerial inspections by a helicopter, a drive-by truck, inspection workers, "cathodic protection" devices that are "low voltage," fences and shut-off valves.
What rights of access across the property to the easement will be allowed, if any? The right of access to the easement can be limited to using the easement itself for any monitoring, maintenance, testing and repair, rather than crossing your property to gain access.
What is the location and dimensions of the temporary and permanent easement?
Is the consent of the landowner needed before the easement can be transferred, sold, or assigned to another entity by the easement holder?
What are the limitations on the use of the easement by the landowner? A Bluegrass Pipeline handout specifies numerous limitations, such as "above ground structures are prohibited on Bluegrass Pipeline's right of way. Landscaping in the vicinity of Bluegrass Pipeline facilities is limited to lawn and low growing (less than five ft. tall at maturity) shallow-rooted shrubbery.
Is there a corporate guarantee by Williams Co. and Boardwalk to stand behind all obligations of Bluegrass Pipeline LLC if the latter becomes incapable of or fails to timely perform any duties or discharge any obligations required under the Agreement? According to a 2002 article by "The Street," Williams Co, 50% owner of Bluegrass Pipeline LLC, spun off a portion of the company (Williams Communications), which subsequently went bankrupt. The article indicates, "Williams spun off Williams Communications in April 2001 with assurances that the company had enough funding to carry it into 2003, by which time it would supposedly be self-supporting. Instead, the struggling communications company -- cast from its parent with a $5 billion debt load -- filed for bankruptcy protection a day shy of the one-year anniversary of its spin-off."
How will future disputes with the easement holder be handled?

CONSTRUCTION-RELATED PROVISIONS
Who will be the point of contact during construction, and what number can be called day or night of there is a problem?
What days and hours will construction activity be allowed?
​Have you been provided a construction plan, including location of temporary roads, if any, disposition of brush or trees removed from right of way; the segregation, stockpiling, and restoration of topsoil and subsoil, restoration requirements, construction timetable, etc?
Have you been provided a blasting plan if blasting will occur, including a blasting schedule and a pre-blast survey of all buildings, wells, springs, and other structures be done to document pre-blasting conditions.
Permalink Reply by James on January 16, 2014 at 2:02pm
cont…..
Is Bluegrass PIpeline LLC posting a construction bond to cover all construction-related responsibilities under the agreement, including payment for damages to crops, structures, buildings, and water supplies (including water quality testing and well yield)?
Is there a water supply replacement obligation in the event that the excavation, construction, blasting, or operation (leakage, etc.) causes loss, diminution, or contamination of water supply?
Will Bluegrass Pipeline LLC survey and stake the easement prior to construction?​
Have you been given a restoration plan, including time frame for restoration, types of grasses and other vegetation to be planted?
Has the company provided evidence of maintenance of casualty and liability insurance and worker’s compensation insurance for personal or property damage during construction?

OPERATION, MAINTENANCE, ABANDONMENT
Who carries liability for property damage and personal injuries during operation, and abandonment? If a neighbor's property is damaged, or there is bodily harm, will the easement holder pay legal fees incurred in defense of a suit, and defend the landowner from any third-party claims associated with the operation of the pipeline or any leaks, releases, or other accidents? A recent pipeline leak study by the PHMSA (see page 62 of the study) indicated that in the event that a 30-inch hazardous liquid pipeline under 1,480 psig pressure released liquids and exploded, with block valve closure within 13 minutes after the break, the RADIUS FOR POTENTIALLY SEVERE DAMAGE WOULD BE 5,000 FT. The new build section of the proposed Bluegrass Pipeline is 24 inches in diameter and will under a MAXIMUM OPERATING PRESSURE OF 1,480 psig.
How will the company access the easement (e.g. if fenced, who can gain access, and does access require prior notification to the landowner)? Where fencing or gates exist, what locks will be used and who will have access to the locks?
Who will be the point of contact with the company, especially in the event of an emergency? What will be the frequency and manner of inspection and maintenance?
Who bears responsibility for maintenance of right-of-way, and how it will be maintained (i.e. mowing, use of herbicides or not, etc.)?
When the pipeline and related structures are deemed “abandoned,” will the pipeline and other related structures be removed, and will the easement be revegetated and revert to the landowner?
Is there mandatory termination of the easement for non-use over a defined period of time, and for failure of the company to comply with the terms of the easement?
Who is responsible for costs of remedying any contamination from leaks or releases from the pipeline?
What are the penalties for any breach of easement terms and conditions by the company? How will future disputes with the easement holder be handled?
Permalink Reply by INVICTUS on January 20, 2014 at 11:34pm

I have started a conversation "Pipeline Companies - Hard Bargaining vs Illegal behavior" in order to elicit comment from folks regarding their dealings with these Pipeline companies.

Anyone have any first hand experiences?

Permalink Reply by lance on January 21, 2014 at 9:11am

I am currently negotiating an agreement with Mark West for a 1000ft. ROW on my land in Guernsey county. It,s not the blue grass line but they want to put in a 20" trunk line and then 4 more smaller lines beside that one 5' apart... My lawyer hasn't contacted me yet but the R.O.W. agent is very helpful and accommodating... No pressure or threats.. They just seem to want me to be totally satisfied with everthing, so far I am. I believe I can live with a pipe line R.O.W. on my property as it will mean financial freedom and a better chance at being put in a drilling unit. And I get to participate in this boom to lessen our dependence on Arab oil. Why make the Arabs richer when they all hate us anyway.

 I consider this R.O.W.  another blessing from God to give my family and me a blessing for years to come. When I get into a pooled unit and they drill and start producing, and transporting via pipe line I'll have a part in it, I like that Idea. What better use of my land could I make...? They always reclaim the RO. W. and make it look better than it did and I can have full use except to build on it or plant trees... I have 21 acres 1000ft. adds up to about 2 1/2  acres. For what I've heard I can get, is well worth the price because I don't think I'll want to sell or build a house where they want to put in the line any way. I'm 58 now and when I die my grand kids and their kids will still be spending the money that will come from this. No more lack in my family.... We gotta have pipelines to sell the oil and gas and make all this happen... 

Permalink Reply by Bob on February 2, 2014 at 3:51am

Lance, that's smart thinking.  Im in the same situation and not trying to get greety but looking on down the road for my family. 

Permalink Reply by gofish on January 21, 2014 at 12:20pm
In Lee Twp Carroll county well every half mile. I wish everyone had attitude like yours! Your wells are on the way!
Permalink Reply by lance on January 21, 2014 at 12:29pm

THANK YOU!

Permalink Reply by TM on February 1, 2014 at 7:09am
Permalink Reply by Mark McGrail on February 1, 2014 at 7:22am

TM,

Those are good general maps. I wonder if there are any maps showing counties or townships ?

Permalink Reply by lance on February 2, 2014 at 2:15am

I'd like to see a map of the Mark West Beeham wells pipeline in Guernsey county... Or the purposed rt. I'm still waiting to hear from Mark West about my agreement with them... I'd like to know how bad they need my property.

Permalink Reply by INVICTUS on February 2, 2014 at 5:12am

No one HAS to take this line: it is not under "Ferc" authority.

Your decisions should be based on its own merits for your landowner needs.

Remember, if you grant the easement, you are permanently and forever granting

that chunk of your property (meaning many of the rights and privileges to use it)

 to the pipeline companies, including the right for them to transfer these new rights

to yet another pipeline company in the future.

Is it worth the loot ?  Are the terms and conditions for your landowner protections IN WRITING

and to YOUR satisfaction? AND, if they breach these terms both during and after the construction phase, what are you going (or be able) to do about it?

Only the Landowner can answer those questions.


You know, this post seems to be almost hostile to the pipeline people.

It's meant to be. This is business, very serious business.

Once you take their money (And really, maybe the money and your life situation IS worth it!)

you live with the results. You may count on that.

Folks, PLEASE get educated and get that attorney involved!

Ohio Farm Bureau, OSU Facts sheets and literature, The internet, these landowner sites;

In my view all great starter resources to BEGIN the homework that ALL Landowners should be doing to

educate themselves for dealing with what may be their new "Partner".

Get that Attorney involved!

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