Pipe Lines Leases

I have been approached by a pipe man to discuss the laying 2600 ft of pipe  3' below the surface. What is the going rate, and other concerns I should have about this endeavor?

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Permalink Reply by Canter on July 14, 2013 at 2:16pm

stephen   dont know where you are located but here is an Ohio state pipe line Negotiating Pipeline Easements fact sheet

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Permalink Reply by Donald on July 14, 2013 at 2:44pm

pipe line Easements are not leases, pipe lines are forever. wide range of payments for pipeline right of ways. #1 get an atty. that knows G/O and pipeline law. one size does not fit all.

Permalink Reply by Michael Allen on July 16, 2013 at 11:32am

Although pipeline easements are forever under some circumstances, unless the company has eminent domain power, the landowner can exercise a lease and not an easement.

Permalink Reply by stephen brescia on July 14, 2013 at 3:11pm

Thank you Evert, I am in Poland and my 50 acres are just north of the landfill drill pads along Hwy 224.

Permalink Reply by Trapper on July 14, 2013 at 3:45pm
Permalink Reply by stephen brescia on July 14, 2013 at 4:00pm

Thank you. If I could get that for 2600' wouldn't that be something. Thant must be an important pipeline.

Permalink Reply by Trapper on July 14, 2013 at 8:45pm

We need to find out who Mahoning Twp's. Solicitor is. Sounds like he must be a master of negotiation! Or did the twp. hire a gas lawyer and who is he?

Mind boggling that the pipeline co. could pay out such a staggering sum per foot to this one entity and peanuts in comparison to the other landowners.

Permalink Reply by stephen brescia on July 15, 2013 at 5:12pm

Not sure how to Pm you. 

Permalink Reply by Trapper on July 14, 2013 at 6:23pm
I'm sure there must be special circumstances with that deal.....or are there.....?
Permalink Reply by Michael Allen on July 16, 2013 at 11:40am

If you work out a lease for a set number of years, say 10-15 years, then the one time payment is a good thing. If you work out a license agreement, it can be an annual payment with COL increases or a specific amount increased either each year or at a specified time frame. At the expiration of the agreement, you can negotiate another time frame at the going rate. Either way, giving away a nice cash payment to your neighbor isn't such a good idea. On a lease or license, you basically own the pipe once the agreement expires or the company defaults, then that pipeline could be worth a large chunk of change.

Permalink Reply by Ronda on July 14, 2013 at 8:07pm

There is a lot of good information on this website regarding pipelines.  Do a search and read what other groups have discussed.  If you decide to proceed make sure you get a good O&G attorney who is familiar with easements, it is money well spent.

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