Let's Talk Pipelines!!!!

I have been approached by a pipeline company called MasonDixon, that of course is affiliated with CHK. They wish for a right of way through my property to service a pending drill site and no doubt others in the future. I have initially said no!  However, I have neighbors who will also have their chance to supply this ROW. They offerred the standard 2-page all in their favor lease with a one time $15 per ft easement payment. I have downloaded the ALOV pipeline agreement and think highly of it. Will use that as a starting point and offer it to the neighbors. Now....What I need from the listening audience is current payment levels received. This proposed 24 inch pipeline (50ft ROW) is in Columbiana County, appears headed to the new Kensington Plant. I know there has been much said about pipelines on this site, I have viewed most of it. But most is now old news and I would prefer the most current. If you are able to assist with any pertinent info it would be greatly appreciated. First hand knowledge would be great.   

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Permalink Reply by Norm Kozlowski on June 9, 2013 at 10:35pm

that's bullstuffing the current offer is twenty a foot with swepi

 

Permalink Reply by Jack Straw on January 28, 2013 at 10:29am

 

You appear to have done your "homework" and thus know that compensation is one important part; protections written into an agreement is the one of ongoing and lasting importance.

That said, RE: "What I need from the listening audience is current payment levels received."

What people are recieving is all over the map; depending upon their ability to bargain, and the pipeline companies willingness to bargain. I have read that a pipeline company tries to put together three alternative routes ... with hopes of putting together one that works out.

RE: "This proposed 24 inch pipeline (50ft ROW)"

My guess is that it is a 50' ROW plus 25' temporary construction easement - thus really 75' impacted.

My personal opinion is that you should expect to receive $2-$3 per inch/foot .... thus $48 - $76/running foot for a 24" pipeline. Add to this damages (Timber, impact to value of property, etc.).

 

Good luck, and please let us know how things finally turn out.

Without people reporting back, it is difficult to answer questions such as those you posed.

 

JS

 

 

Permalink Reply by Gas Patch Native on January 28, 2013 at 10:54am

Our farm is in Armstrong Co. PA, we just signed a single 24" pipeline easement with EQT midstream. We got $24 per foot ($1 per inch per foot) plus $3000/ acre for timber damages (their original offer was $17.50/ ft). With full payment within 6 months of my signature. I know some others have got more, but for where they wanted to run it it was a fair offer for me. My take on it was that I got more pasture, and money to buy more Herfords. Good Luck

Permalink Reply by Lance Nimmo on January 28, 2013 at 10:59am

I think the rate you got is very fair if they were willing to keep the pipeline in the area you wanted. Right now I am wanting to make sure the line doesn't cut my property in half. If they can accomidate that and keep the pipeline on the edge of my property, I'd be inclined to sign.

Permalink Reply by rob on June 11, 2013 at 3:35pm

Hi,

   Just checking as to which township in Armstrong County your property is located. We are in Plumcreek Township / Elderton.

Thank you,

Robert

Permalink Reply by Retired Tanker on January 28, 2013 at 12:38pm

The planned permanent ROW is 50ft but initially has a 25ft either side construction zone. The first planned ROW was thru my field then into my wooded lot next to my house. My trees will not be cut down in the building of this pipeline!!  The field is not that big of a deal but I was more concerned about the unknown future building/development restrictions. Therefore, the neighbor has the chance now to own the pipeline. This pipeline will now skirt my property line instead of being on it. I felt $15 was way too low to restrict one's use forever. And if this is going to be next to my property, I want my neighbor to have the very best lease available. A local property owner has recently signed for the $15 per ft payment, but I do not know all the particulars. Thanks for all the inputs 

Permalink Reply by bill on January 28, 2013 at 2:25pm

I am currently in negotiations in Mercer, Pa.  The proposal is 100' ROW + 25' temporary.  I will have 530'.  I was offered $1/inch diameter x footage.  The 530 feet is mostly soybean field, no timber.  I was offered $3600 for crop loss/damages.  The trench will go across my field so I won't be able to farm 4 acres.  I counter offered with a 50' ROW + 25' and $3/inch diam x footage.  They came down to 75' ROW + 25' temporary and changed the wording on the pipe calculation.  Now they are speaking in terms of $/footage.  This is what they proposed.  They will guarantee $30/foot + damages.  If they put a 20" pipe in, then I will owe them 10" of pipe in the future.  So basically it is back to the $1/inch diam x footage.        

  

Permalink Reply by bill on January 28, 2013 at 3:22pm

yes you are correct RAP, just over one acre and I can still farm it after they have completed. But with the pipeline trench in place, I won't be able to get to the lower half of my field, which is about 4 acres. So they are compensating me basically for 4 acres of soybeans loss for one year.     

Permalink Reply by Christa M on February 18, 2013 at 3:09pm

Did you ask them to put the pipe in under your field at 48 inches instead of the 36?? That is what they are doing for my neighbor.  They are cutting his field completely in half. 

Permalink Reply by Rob Rotz on January 28, 2013 at 4:38pm

RT,

I had the same offer you did, then i countered offered and a week later they told me they found a way around me.  I lost 150k.  My neighbor took their deal so they went behind me, my advice take the money and run, they will find a way to get there with or with out you....   im just a stubborn land owner who got left out for i guess asking for a little more..

Permalink Reply by Lance Nimmo on February 18, 2013 at 9:22pm

What I find interesting is all the people that openly say they got $15-$30 per foot, yet we keep hearing about "the others out there who go more." Privacy clause my you know what. Fact is if you play hard ball they go around you, because whole communities do NOT stick together. Hostage, I agree. If you like everything else about your lease but the money, take what you can get and run! 

Permalink Reply by Lance Nimmo on February 18, 2013 at 9:45pm
My heirs aren't paying the taxes on my property. If they were, I'd care what they thought.

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