just wondering if anyone has heard anything about pipelines...where they will run, what a basic lease should contain, do you get royalties from gas pipelines..... anything anyone might have heard... I have heard 1 or 2 people are being approached, don't know which company... thanks, Theresa

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I am hearing some are offered $5-6 lin foot. Also if they need to take any trees down you get the timber value. I have heard one neighbor got $18 Lin Ft going through his woods.

     Thanks, Mike ! I'm in Liberty township, where are you located in Tioga county? And do you know in which direction the pipeline runs or the company involved? Thanks again, Theresa     

Morris Twp

The information I have suggests Those prices are obscene for the industry. I have heard There are places in PA getting ten times that amount and more. From what I have heard, The reason they are here now is to scrape the bottom of the barrel looking for real cheap deals. No reason to rush into anything. You have something someone else wants. Be patient and find a good attorney.

Thanks, Thomas !

Several comments for the discussion: the Right Of Way (ROW) is precisely that. This pipeline is in the ground for perpetuity. The land is yours as are the taxes and the liabilities. So when negotiating this remember to have your attorney include clauses which assign responsibility for any problems to the leasing company. Make sure that any problems caused to propery, yours or neighbors, outside of the pipeline is their issue to resolve. Legal expenses and investigations that you incure to resolve an issue as the result of their negligence are to be reimbursed by them (no limits).

If timber is to be harvested, have your own appraisal performed and compare it to their estimate. Negotiate this price. Specify how the harvest is to be done and state clearly how the logs are to be stacked. Then sell the logs yourself. If they complain, point out that trees are a farm crop and that within the ROW that you, or your children, will never be able to harvest trees again. If they further complain, then state that they will have to pay under timber theft provision of Pennsylvania Law. Don't tell them that this statute requires a threefold price increase over you valuation. Also require, in you addendums, that all stumps be pulled and ground into mulch and that the mulch be spread within a specific time period. Include an addendum that establishes a financial penalty for non performance.

Specify what ROW plantings need to be made for purposes of reclamation of the site. Many of us prefer a planting which will support specific wildlife. Do not accept their standard seed mix. Specify Crown Vetch free seed mix.

Specify that the company who owns the pipeline is responsible for maintaining the plantings for as LONG as the pipe is in the ground.

During construction, any fuel leakage or lubricant leakage is their cleanup responsibility and that clean must be to DEP, EPA and OSHA standards.

Specify that when the pipeline is no longer used for transporting gas that it may not be converted to other uses. The tendency is to convert these to fiber optic line carriers and the landowner receives no compensation for access. If at any time they refuse an addendum, jack the per foot price up or walk away. Both are effective negotiating strategies.

State in your addendums that the only access that employees have is to the pipeline ROW and not to any adjacent ground. Further, since this is still your land, any time access to the pipeline ROW is needed the company must contact you 48 hours prior to their entry on your land.

And this may be the most important point. This pipeline will divide your land and it does have the potential for limiting your access to both sides of your land. The pipeline company may say that to protect their pipe that any truck or vehicle in excess of 8 tons may not cross the pipe. If you log or use heavy machinery this is a problem. Specify, even if you do not currently use heavy machinery, that specific sites on the pipeline be constructed in such a manner to support 80,000 lbs (road legal logging trucks). Do not be convinced that mats can be rented to lay over the pipeline so that you move your machinery over the pipe. Do not be convinced that they will take care of it for you, they won't. Remind them whose land this is.

If after all of your work, they will not agree, do not sign since you are giving this away forever. The money they wave in your face is taxable and a one time payment for a lifetime with a pipeline.

This all from experience and a view to the long haul.

Thanks for the detail John on this subject - Here is a link to a comment made on the Timber.

HTTP://legis.state.pa.us/WU01/LI/LI/CT/HTM/42/00.83.011.000..htm

 

And thank you for the specific information on timber. I believe that if someone is approached by a company for any gas well related activity it is wise not only to educate yourself but to also inform your neighbors. A group of landowners with the same information presents a much stronger bargaining position.

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