Replies to This Discussion

Permalink Reply by Jack Straw on October 9, 2014 at 12:44am

RE:"What is the going rate to allow gas transmission pipelines across your property?"

With the information you have provided, I would estimate between $2 and $400 a running foot .... not being flippant, you simply have not given sufficient information to allow a meaningful answer.

There are very many factors which would go into formulating an appropriate answer to your question: Is it an interstate or intrastate pipeline, or is it a local gathering line? What state are you in? What size pipeline(s)?  Designed to transport what? Is there a termination clause" What indemnification? How wide is the R-O-W? Farm land? Forest land? Scrub goat pasture? Residential? Frontage? How will its presence affect the value of adjoining property?

And, financial remuneration is only one matter to consider in negotiating and before signing a Right-of-Way agreement.

There has been a considerable amount of discussion on this site concerning pipelines.

When you are able to set aside a significant amount of time; I suggest that you educate yourself by going to the top right-hand corner of this page and doing a search on 'pipeline'.

Once you have familiarized yourself with what knowledge has already been dispensed ... you should then be in a position to pose specific questions which might then illicit an appropriate response.

All IMHO,

                 JS

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Permalink Reply by sandra garbisch on October 9, 2014 at 5:55am

Thank you so much for your reply. I realize I did not give very much info. I tried searching pipeline and did not get much info. It is farmland and we own 600 acres in Connoquenessing Twp. Butler County. It is a gas transmission pipeline, I believe only in state that will obviously connect to other interstate pipelines. I follow this site regularly and always appreciate your answers. It is a large pipeline. We are contacting an attorney but always am interested in info on this site.

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Permalink Reply by sandra garbisch on October 9, 2014 at 6:23am

20 inch pipeline 2100 feet, 50 ft ROW

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Permalink Reply by sandra garbisch on October 9, 2014 at 6:25am

It is a collecting pipeline. Sorry I am doing this in spurts, my husband spoke with the landsman and is just waking up.

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Permalink Reply by Jack Straw on October 9, 2014 at 3:37pm

The good news is that it is PA  and it is NOT an Interstate pipeline.

Since it is NOT an Interstate pipeline, they cannot use eminent domain; they have to deal with you (on your terms) or go around you.

I am appalled by the Boilerplate ROW agreements that are placed in front of landowners; I am appalled (and saddened) by the fact that many people sign these, as presented.

In my opinion, there is so much that should go into a landowner friendly pipeline agreement.

They want the ROW to last forever ..... I believe that there should be a termination clause .... the ROW terminating when the pipeline has not been actively used for its exact stated purpose for a period of time (of perhaps one year).

Someone will have to pay property taxes on the land over which the ROW extends .... forever; however they want to only give you a onetime payment  .... and then hold the land forever.

In addition to the 50' ROW, they likely want a 25' temporary ROW (for construction and repairs at some future point in time). 75' x 2100 linear feet = 3.62 acres; and it will affect the value of the land on either side of the ROW.

As farmland, you can still farm it .... but nothing else ,,,, no timber .... no buildings, etc.

In addition to a termination clause. a few other clauses immediately come to mind:

A clause specifying what can be transported in the pipeline.

A clause that states that any additional pipelines or increase in size of pipeline need be handled in a separate future agreement.

Separate compensation for any above ground appurtenances; such as Valves, Pig Launchers, marking posts, etc.

Locking gates (maintained), as appropriate, to restrict access to people who belong on the property. Pipeline ROWs become avenues for idiots on ATVs and ignorant swine who want to dump a load of dirty diapers, old sofas, TV's, toxic waste and anything else they want rid of.

Testing of soil before construction, preserve topsoil, returned soil tested and brought back to (at least) the fecundity of the original soil, erosion control (as necessary), seeded (if you are not prepared to plant a crop at time of completion), responsible for returning and handing issues such as settling, erosion, etc.

Return the land to its original contours ... deal with any issues which arise (I personally had a problem associated with a pipeline that encountered a perched water table .... creating a Spring where no such Spring had previously existed. This resulted in water oozing out of the ground adjacent to my access road .... turning a portion of my road into a quagmire ... a situation that now requires frequent ongoing repair).

Full indemnification, including any legal expenses you might incur.

Specified (inflation adjusted) penalties specified for breach of contract.

Do not agree to an Option for pipeline  .... unless that Option agreement contains ALL that you want included in the Full final agreement. Do not agree to Option unless you are compensated (upfront) for the Option (you are tying your property up until such time as the Option is exercised (if ever exercised) .... by virtue of an Option; they are receiving something of value, you are giving up something of value .... you should be compensated .... including your Attorney costs.

On the subject of financial compensation .... though (obviously) important; I feel that protecting your interests and protecting the land (and your quality of life) are of primary importance.

If you are unable to obtain the types of clauses that are important to you .... then that should result in a significant escalation in compensation.

Some on this board have suggested a lump sum payment, plus an annual payment (a sort of rent) to defray ongoing expenses and inconveniences.

A pipeline is an ongoing blemish on the property and a likely ongoing inconvenience and concern for the landowner; unless the compensation is very generous and the terms are to your liking .... you may very much wish to encourage them to go around you.

And, do not believe anything that a Landman says to you .... in the end, the only thing  that matters is that which is stated in the final signed, notarized and recorded document.

Good luck!

JS

  

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Permalink Reply by sandra garbisch on October 9, 2014 at 3:53pm

Thank you!

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