Nexus Pipeline Right of Way Offers

Nexus has started offering landowners compensation for right-of-ways here in Stark County. Their initial official lowball offer to me was about $12 per foot. They have started coming back with second offers to some now. Has anybody else seen offers and care to comment or post their offer?

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Permalink Reply by jason on February 15, 2016 at 2:28am

A good friend of mine was approached by Nexus with an initial offer of $28/ft. The rep himself laughed at the offer and told my friend that was what he was supposed to offer but could definitely negotiate for more without checking back in with Nexus. My friend declined to counter and contacted an attorney. He is also in Stark County between Louisville and Alliance. 

Permalink Reply by Indiana Smith on February 16, 2016 at 5:42am

Initial offer was $11 per foot and the contract was all in their favor.  Insulting to say the least.

Ohio Farm Bureau expert says that it should be worth $110 per foot and the contract needs major modifications/addendum before signing.  He gave me a list of attorneys to contact and a new Ohio Pipeline Construction Standards book.  They should follow all guidelines in the book and it should be added to your contract.  I'll try to attach it to this post (pdf file)  

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Permalink Reply by Rasty on February 16, 2016 at 6:38am

Thanks Jason and Indiana Smith.  My understanding is that the Nexus pipeline land men can go to $50/foot without checking in with the home office.  That's still a far cry from $110 a foot or more.   I have had several people call or stop by saying they can get up to $200 per foot if they represent me.  I have a call into an attorney now and am awaiting a return call back. 

Indiana Smith, was that figure based on going through farm ground, or just a general number they threw out?   Thanks for the post.

Permalink Reply by Indiana Smith on February 16, 2016 at 7:23am

That was for farm ground.  I think $200/ foot would be reasonable for this line, depending on location.

One of the things that concerns me about any pipeline is the safe setback distance.  This distance will vary depending on size of the line and pressure.  The easement may only be 50' wide (25' on each side of the pipe), but the safe setback distance may be over 1000 feet.  In other words, in the event of a pipeline explosion, anything within 1000' of that pipeline will be destroyed.

So you get paid for 50', but you really should not build anything within the safe setback zone.  This reduces the value of the land in that zone significantly.  There is a formula for determining this safe distance:  http://xylenepower.com/Natural%20Gas%20Pipeline%20Safety%20Setback.htm

You need to consider these facts when negotiating easements.  The actual easement may only take up a few acres on your property, but it may affect about 20 times as many acres.  For example, a pipeline going down the middle of your farm might have an easement area of 3 acres, but may affect 120 acres in the safe setback zone (1000' on each side of the line).  This would limit your ability to ever develop this land.  Might also affect your insurance rates on existing/future structures (house, barn, garage, retail, ect).  

Lines can rupture due to poor welding, corrosion, damage from excavating, earthquakes, ect..... 

Here is a picture of a pipeline fire in Columbiana County in 2011.  It melted the siding on a house that was approximately 1000' from the rupture site:  

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Permalink Reply by Rasty on March 12, 2016 at 12:42am

Goldman & Braunstein, attorneys, will host an informational meeting about the NEXUS pipeline for landowners today, March 12 at 1:00 PM.  Landowners will be educated about their rights in regards to pipelines.  These guys are the #1 eminent domain attorneys for landowners.  The meeting will be held at The conference Place, Inc., 6947 Promway Ave NW, North Canton, OH  44720.

Permalink Reply by Indiana Smith on March 13, 2016 at 8:37am

Rasty,

Did you attend the meeting?  I was unable to go, but am curious on what you learned?

Permalink Reply by Olive Sue on March 13, 2016 at 10:01am

I hope EVERYONE  takes every opportunity to learn every thing they can about the pipelines.  I do not believe we should be against the building of infrastructure but we certainly need to be compensated adequately.  Take seriously what it will do to the future of your property.  Ohio Farm Bureau has excellent information available.

Permalink Reply by Rasty on March 13, 2016 at 10:02am

Indiana Smith,

Yes, I attended the meeting.  Michael Braunstein led the discussion, and there were several other attorneys there from their firm.  Here are the takeaways that I wrote down:

-They deal with eminent domain issues only, for the landowner.

-He doesn't think the line will be rerouted.

-He said that if we didn't go with him, be sure to get a trial lawyer to represent you.

-Braunstein and Goldman would negotiate the easement.  They would come out to each property and review it with us.  

-They charge 25% above what the pipeline company offered you.  So if you had been offered $50/foot, and they get it to $150/foot, you would owe them $25 /foot.  You pay them once the pipeline company pays you.  Other than that, there is no upfront cost. 

-They have done over 500 pipeline cases.  They deal directly with the Spectra Energy attorneys, and not the landmen.

-He talked about things he would get in the contract, like what they do with the spoils from boring, any damages, compaction, drain tile, damage to residence, depreciation, abandonment clause, etc. 

He put up a graph that showed they average getting 4-1/2 times the pipeline company offer. 

-Braunstein would advise, during negotiations, on where they are at.  It will be up to the client to accept or reject, and then proceed from there.

-There were only about 20 people there.

-They gave us a packet with a form we can use to get on board with them if we so with. 

Permalink Reply by OHIO on March 13, 2016 at 7:05pm

Our family farm is located in Medina County and will have the pipeline going thru it.  We  have been given an offer.  Seems very very low.  Currently we are seeking counsel.

Permalink Reply by Indiana Smith on March 14, 2016 at 5:55am

Rasty, Thanks for the response.  

I've used other attorneys in dealing with the oil/gas companies.  I'm glad to hear that these guys allow each client to accept/reject the individual offers.  Too often these groups use the same agreement for everyone.  I'm a farmer and therefore have different goals than a non-farmer.

Did they offer any idea on what price per foot they thought was reasonable for this particular project?  Any time frame on when they thought we would need to settle by?

Permalink Reply by Rasty on March 14, 2016 at 9:17am

Indiana Smith,

They were not commenting on what they thought we could get/foot, as they said it depends on individual circumstances, like in your case, field drain tiles, compaction, soil disturbance, etc, and things like future use of property.  They only said that they averaged 4-1/2 times the amount what the pipeline company offered.  I think that was over the last 4 years or so.

 

I don't recall them saying a time frame we need to settle by, but I believe NEXUS wanted to start construction the end of this year.

 

 

Permalink Reply by OHIO on March 17, 2016 at 5:03pm

We are meeting the landman tomorrow for an "updated offer" from Nexus.  Will be interesting to see what it is.

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