Need Help with Pipeline Lease

Hello,

Last night a guy from Oxford Oil came to my house and handed me a contract to put a pipeline through my place in Guernsey County.  He acted like I should just sign it because "it would get me Christmas money." They are paying $10 a foot.  I don't know anything about piplelines....

What I want to know is, can they force me to do this?  I asked him what would happen if I said no.  He hemmed and hawed and said that they would have to go around and it would be a long way. He stated that I am the "last piece in the puzzle."

$10 a foot does not sound like it is a very good deal either.

Also, I skimmed the contract and basically it gives Oxford (or whoever) the right to have regulators, compressors, etc. on my land.

Before I go to an attorney, does anyone have anything to say about this?

Sue

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Permalink Reply by Josh Willis on December 12, 2013 at 8:18am

They always start out low with a crappy agreement, if you really need you they will come around to better money and agreement. Don't go it alone, if they are truly serious then you need legal advise on this.

Permalink Reply by Susan A Tippel on December 12, 2013 at 8:21am

I don't want to do it at all really.  I just want to know if they can force me to do it.  Can I just say no?

Permalink Reply by JK on December 12, 2013 at 8:24am

You must ask an attorney.

Permalink Reply by Bob on December 12, 2013 at 8:32am

Hi Sue, I'm not an attorney but I don't think most people need one.  In Ohio generally the starting point is one dollar a foot per one inch diameter of the line.  If the line is a 10 inch line then $10. a foot is about right to start.  Things you need to watch are the number of lines they are putting in and make sure your lease states that your paid for each line.  I suggest you have any clause or wording about  compressors or such removed or must be negotiated separately.  If you have timber that they are going through you need paid for that also.  You can refuse to sign also but why not take the money.  These contracts are negotiable and if you are the last piece of the puzzle you have a little power.  These pipelines are all needed  in order for the gas to be transported.  The more pipelines the more gas wells. This is just my opinion and you can find some real good info on this sight.

Permalink Reply by Susan A Tippel on December 12, 2013 at 8:52am

Thanks for the reply. Why not take the money? Because it is not enough money to warrant giving someone access to my place forever. Because I only have 52 acres and the way it lays, there is no good place for a 100+-foot wide pipeline. Also, it is a hill with a flat top. There is no good way to access it except for my steep driveway (which is an old oil and gas access road)I don't want the gas and oil people going up and down my driveway, not to mention I don't want them coming and going all.  Which they would because they would have total access.

When I bought the place there was a gas well on it as well as an oil storage tank. It was a big fight over years of time trying to get the oil company to plug the well and haul away their stuff. Now that I have one company out of there, I do not want another. I can live without this small amount of money.

Permalink Reply by Bob on December 12, 2013 at 10:06am

Sue, sounds to me like you already know what you what so just do it and don't ask for suggestions.

Permalink Reply by Susan A Tippel on December 12, 2013 at 11:01am

Well, I primarily wanted to know if I could say no.

Permalink Reply by WranglerRouser on January 31, 2014 at 12:54am

Sue,

They CANNOT force you to do it. You CAN say no and send them packing! As The Hiker indicated further below there is no eminent domain on this type of pipeline.

FYI:

Licking County landowner fights pipeline and appears to have won

Permalink Reply by Josh Willis on December 12, 2013 at 11:14am

I think a lot people put way too much emphasis on dollars per inch. Make a dollars per foot deal that you can live with and don't worry so much about dollars per inch. Many times you wont even know what size pipe they are going to put in especially if your agreement allows multiple lines. If you go by dollars per inch I received 8.33  per inch on my first pipe and 3.33 on my second.

Permalink Reply by evan on December 12, 2013 at 9:16am
Sounds like you need to tell them know. To me it's not worth the little money hey offer. I know people who have let them and regret it. It will change everything for a while. Nonstop traffic people coming and going nonstop for a long time. Now if it's a life changing amount of money that's different possibly but for the little they offer I would never let them. I am now driving through huge holes and mid puddles on the township road. I'm sure they will fix it eventually but probably not till spring.
Permalink Reply by Eric on December 12, 2013 at 9:47am

susan, unless you are desperate for cash i would just had their lease back to them and tell them no thanks.  its not worth the hassle.  After construction then their is maintenance.  Our lines are every 3rd year they come in and then we have to deal with issues.  Sometimes not negotiating with them will net you a better price in the long term. 

Permalink Reply by The Hiker on December 12, 2013 at 10:12am

If it is an interstate pipeline, which with 99.999% probability it is not, they could eventually force your agreement if they really wanted to.  If it is an intrastate pipeline, which it probably is, there is no way they can force your participation.  Oxford/Eclipse probably needs your land to connect up some local wells to a larger pipeline and this defines it as an intrastate line (within the boundaries of Ohio)....so just tell them "No Thanks" and show them the door.  End of story.   There is no way I would ever want a pipeline cut through my property....and if you read the fine print, the agreement gives them all kinds of ridiculous rights that a sane person would never agree to.  Just my opinion, but of course if you have lots of land and the line is going through an unused, unseen hayfield and the offer is terrific (not $10..what a joke!)...and you and your attorney have modified the ROW agreement to remove all the offensive language...and you really need the money...then maybe.  BUT, NEVER, EVER sign anything without legal assistance.

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