Pipe line ROW

What is the current price paid per linear foot?

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Permalink Reply by DGS on July 30, 2015 at 1:47am
Thanks Lori!
Permalink Reply by Dutch Buckeye on July 31, 2015 at 3:12am

I received an offer from Kinder Morgan for the Cochin East Pipeline ROW and permanent easement. This offer is per acre rather than per foot. The property is in Orange Township, Carroll County,Ohio. Has anyone else received an offer for this pipeline?

Permalink Reply by Michael Allen on August 3, 2015 at 4:35am

Historically, transmission line pay less for right of way than they do for a gathering system. This is due to the fact that a transmission line usually has the right of eminent domain and can condemn their route. A gathering line can not condemn and has to buy their way across properties. Of course, if your well is a method of income, it would be to your advantage to be easy since the more production that goes through the gathering line, the more you make. On the other hand, if you do not own the minerals, you can figure what it would cost the company to go around you and use that cost as a good ending place for price. 

Permalink Reply by PETE on August 3, 2015 at 10:37am

50 bucks a foot for a 75 foot wide row with another 50 per each pipeline--I think I done pretty good

Permalink Reply by Corvette on August 3, 2015 at 11:37am

What pipeline and company did you sign with?

Permalink Reply by PETE on August 4, 2015 at 7:33am

Permalink Reply by DGS on August 4, 2015 at 7:55am
Thanks, Pete! Was that in Ohio or Pennsylvania?
Permalink Reply by PETE on August 5, 2015 at 3:40am

wv--I`ve dealt with several and give them all the same deal--markwest, marathon, Williams and consol

Permalink Reply by Thomas Lilli on August 8, 2015 at 12:31am
To those in Tioga Pa, there's lots of activity by SWE offering $15/foot. There are some saying this is the best we can do. Meanwhile, elsewhere in the state there are offers at up to ten times that amount.

From what I gather, in the Liberty area of PA, O&G are looking for real desperate people to agree to ridiculous prices. What we all have to remember is what happened to our $20-$90 per acre leases we signed back in 05 and 06 with "reputable" O&G companies. Two years later many sold our leases for up to $5000/ acre.

So, if we give away a ROW to an energy company for $15/foot, we are giving them an opportunity to make tens of thousands of dollars on us at our expense. Not only that but, when O&G companies sell these right of ways, they get pump age royalties we will never see.

I'm for waiting. I'm not signing a ROW for less than $75/foot/pipeline. I've supplemented the O&G industry enough.

Also, good representation is worth the money. The agreements you make today will last for ever, look at the money you spend as amortized over your life time. Very small investment. Just make sure your counsel is very well versed in O&G.
Permalink Reply by Bob Shaw on August 8, 2015 at 2:08am

That is an articulate and rational position. I have been advised that should this go to eminent domain, the court is far more reasonable (generous to land owners) than the Pipeline companies have been. So, if the Land Agent rolls out this tired veiled threat that you had better settle before your property is seized, know that is not a bad alternative to a low-ball offer. Bring it on.

Permalink Reply by Barry D on August 8, 2015 at 3:18am

I know several people who were paid a nominal fee up front for signing, and receive a yearly rental/lease payment.

They aren't getting rich but it is long term income.

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