Pipelines

A landman representing Mark West energy stopped today to see about running a pipeline through my property in Warren Twp Jefferson county Ohio.  He offered $15 a foot and I told him I would need final say where the pipeline would run and that I would never sign for $15 a foot. He imediately told  me the $ 15 was a starting point. He wanted the right to have a survey crew  come on my property. I told him That I would think about it. Question-- do they pay to survey your property and how much a foot is the market paying?

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Permalink Reply by Jack Straw on May 28, 2012 at 12:22pm

Assuming that you are agreeable to having a pipeline on your property:

RE: "do they pay to survey your property"

I would suggest that you give written permission to survey with the stipulation that they pay for any damages.

And, I would stipulate in the permission that they inform you in advance as to when they will perform the survey so that you have the opportunity to observe/accompany the surveyor.

Normaly no payment for survey, they need to at least do a minimal survey to know how you property might fit into their plans.

Just make sure that they cause not damage to trees/crops.

 

RE: "and how much a foot is the market paying?"

That depends upon many factors, very many factors.

Much of what you want to know has been repeatedly discussed on this site.

I suggest that you set aside some "quiet time" and then go to the top right hand side of this screen and type "Pipeline" into the search window.

Once you have reviewed what is available, you should be in a position to ask the right questions.

 

Pipeline Right of Way (ROW) agreements are forever!

You will be dealing across the table from pipeline ROW experts; unless you are an expert in contract law, you will want/need an Attorney.

Never sign anything binding without legal review, never.

Locate an Attorney with experience in O&G pipeline experience and pay the few hundred dollars that could save you from a lifetime of grief.

 

All IMHO,

                  JS

Permalink Reply by Corvette on May 28, 2012 at 3:22pm

Jack, That is all good advice. Thank You. The more I think about it the less I would want a pipeline on my property. Again Thank You for the advice.

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 28, 2012 at 3:35pm
There is not much that I can add to Jack's advice; however, keep this in mind...the O& G pipeline company can force your hand. If you refuse to sign a contract with them, and they have no other alternative route...they can and will claim Eminent Domain, and they have every legal right to do it. So, keep that in mind when your at the negotiating table. I am not an attorney and this is not ment to be legal advice in any shape or form.
Permalink Reply by Jack Straw on May 28, 2012 at 4:10pm

Gulp,  Corvette, I just saw your profile and see that you are in Ohio.

Good advise from Black Gold Junkie.

PA has some pretty good landowner friendly laws with respect to Eminent Domain; not so good in Ohio (from what I understand). In PA, Eminent Domain can only be used for inter-state pipelines (Feds involved) and for Utilities. In Ohio Eminent Domain can be more easily evoked.

Mark West is a Mid-stream Company; their stock symbol is MWE in case you want to learn more about them, their corporate website is: http://www.markwest.com

Mark West's business is owning and operating pipelines. 

Regardless of whether or not you are inclined to allow a pipeline, it might be to your benefit to communicate with Mark West to the point where you can determine what their intentions are with regards the pipeline.

I am glad that Black Gold Junkie caught this and brought it up.

 

All IMHO,

                 JS

Permalink Reply by Corvette on May 28, 2012 at 4:22pm

Black Gold and Jack, I did'nt realize they could force eminent domain on me.  Chesepeak has plans to drill 4 wells on our hilltop begining this fall and they want to tie them all together. I'm sitting on 50 acres. I'm one of those dummies that signed up in 07.  Thank You both for the info.

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 28, 2012 at 5:20pm
As Jack stated...seek a qaulified O&G attorney who can guide you through the many mazes in O&G contract law. Depending on how your lease is written, there may be holes that your attorney can use as leverage concerning pipeline easements. There is a great O&G attorney located in Canton, OH.
Permalink Reply by Dan on May 29, 2012 at 2:47am

Covette,

As was awoke at 6:45 AM this morning with a call asking if it was OK to spray the right of way thru our property, even though for decades they have been told NO, I wished the party that allowed the ROW decades ago stipulated no spraying so they didn't ask me every year.  If you give them the ROW think about what you want them not to do years from now.

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