Pipeleine Easement Compensation

Hello everyone,

I have joined this forum in order to find out what fair easement compensation is in RURAL areas. I joined GoHaynesvilleShale for the same purpose. I got a lot of really good information on easement topics and things to look for and things to negotiate for in the actual document. I am really appreciative of that information but what I really need is information related to what a fair price is in RURAL areas of various states. Sabal Trail is seeking to acquire an easement adjacent to an existing Southern Natural Gas easement across a corner of our farm. The facts are as follows:

1) Easement is adjacent to an existing easement

2) Permanent easement is 1.16 acre

3) Temporary easement 1.03 acre

4) Pipeline length 987.4 feet

5) Land use is actively managed timberland

6) Both temporary and permanent easement area have been clearcut and site prep work (stumps sheared at ground level and raked away from easement for burning).

7) There are no improvements or personal property on the easement areas

8) There are no dwellings near the easement area

9) The total property is 245 acres

10) The property is 6 miles from the nearest town of about 40,000 people

11) The pipeline will be a 36 inch line operated at 900 to 1000 psi and will transport 1 billion cubic feet daily

Any information anyone is willing to share will be greatly appreciated. If anyone would like to share information privately, I am a CPA and accustomed to confidentiality issues and may be contacted via e-mail at a1@fn-cpa.com, by office phone at (229) 985-7900 or cell phone at (229) 891-1583.

Respectfully,

Al Funderburk

 

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Replies to This Discussion

Permalink Reply by brat on February 9, 2015 at 1:55pm

We got about $70/ft for the Bluegrass line..one pipe , think it was 30 inches max.

Permalink Reply by Bob Shaw on February 9, 2015 at 2:31pm

Does this project have a FERC permit (is it inter-state?)

Permalink Reply by Al Funderburk on February 9, 2015 at 4:49pm
Thanks brat. What state?
Permalink Reply by Al Funderburk on February 9, 2015 at 5:51pm
Interstate. No ferc certification........yet
Permalink Reply by Al Funderburk on February 9, 2015 at 5:54pm
Forgot to mention that our property is in south Georgia. I think gas is coming from Marcellus.
Permalink Reply by Janice L. Hancharick on February 10, 2015 at 5:05pm

With today's technology, once flowing the gas should be able to flow north and south.  The whole idea is flexibility to get to where it's needed most @ the time, and also to the highest paying end point.

36" is BIG.  You want a specific # and that will be determined by what you can get written into the deal.  Numbers are not the only thing for you to consider.  Penn State's Marcellus Center for Outreach  and  Research (MCOR) put out a great booklet on Pipeline Negotiations.  I have a few extra copies and will gladly send you one.  It will provide a lot of food for thought before you make a decision.  Address?

Permalink Reply by Al Funderburk on February 12, 2015 at 3:56am

Does the price per rod or per foot include damages?

Permalink Reply by Janice L. Hancharick on February 12, 2015 at 6:47am

What you want to see in a pipeline deal must be spelled out in detail. There are regulations on the books in each state and the nation as a whole  about damages and more that cover a broad spectrum of landowner concerns.  Being specific about possible damage costs can't be included in the price for rod/foot because the until the "event happens" costs can't be determined .  Rather than looking for a specific amt., wouldn't a percentage make better sense?

Private email me for the Penn State booklet.  You'll find it very useful.  jlhanch@nc.rr.com      

Permalink Reply by Kathi Albertson on February 12, 2015 at 5:24pm
Are you saying that the site prep work has begun with trees being cut before you have an agreement regarding damages?
Permalink Reply by David Allen Lilly on February 13, 2015 at 2:24am

I was asked last night by some of my Amish friends concerning pipeline easement compensation here in Millwood township in Guernsey county.

They told me that the guy told them it would be $50 a foot for an 8 to 12 inch pipe and $25 a foot for additional pipelines.

This seemed very high to me but I told them that I doubted these guys would start the negotiations at the top of the price range they are willing to pay for the easement.

Anybody have any help for me to tell my friends ?

Permalink Reply by Al Funderburk on February 13, 2015 at 4:39am

Kathy, the site timber has been harvested and site prep work has been done in order to replant and we have not yet reached an agreement. I am not going to alter my management plan because of a potential pipeline. Halting a 50 acre timber operation for the sake of 2 acres would not have been feasible. 

Permalink Reply by Mike Larouggi on February 17, 2015 at 5:25am

I'm about to have a discussion with Rice Energy in Monroe County, OH about a pipeline discussion but I haven't had the initial dollar amount conversation.  I heard Bluegrass Pipeline had done a deal on the next ridge over for $90/ft.  That price didn't come easy but I think the landowner had the leverage since this was a desired route.  There were 3 pipes in that deal.

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