Water Line

At 6:22pm on May 23, 2013, Skip said…
The new Chevron facility is practically in my back yard! They came to our house wanting an easement to put a water line through our property. ( With 25 ft. On each side of the pipe. They said the company will pay $5.00 for the foot!
Excuse me..??? Lets see..$5 for just the foot alone and the other 50 ft.along each side of the foot is...FREE?
Of course they pay you for the timber and the things that get destroyed on the property while they put the water line in.
Just curious...but any thoughts on this..?
Your input will be greatly appreciated!
Skip

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Permalink Reply by Skip on May 24, 2013 at 4:53am
Hi Fang..thanks for responding.
Not temporary. The purpose of the water line is to pump water to the plant. Also..it's a 24 in line! If it would ever break..we would have a lake on top if the ridge! Not sure how much land they will need..we discuss that on Tuesday. We have NOT said yes..nor have we signed any agreements.
I guess they are going to have 12 wells over there..and that's good since I believe we are in that unit. But my land is far more important to me...
Permalink Reply by Skip on May 25, 2013 at 4:04am
HAHA!! When the guy said $5 bucks by linear ft..?
But they would negotiate a price with us?? I thought I wouldn't give them a blade of grass for that! But it made me wonder..just how many elderly farmers or vulnerable people that have signed it all away because if the skilled Chevron guy knowing how to make things sound good. It almost made me mad..I'm not going to surrender!! :D thanks for your advice!!:D
I'm getting geared up and ready to play some chevron ball with those boys!
Permalink Reply by Skip on May 25, 2013 at 3:53am
Hi Frank!! Thanks so much for responding!
Well, we have not got that far yet. We had one meeting with Chevron so far..just to see if we would consider their offer. We haven't got to the length of the line or how much land they are proposing to use.
But I can tell you this much..after reading all the responses here..they ain't got this cat by the TAIL!
:D
Permalink Reply by Eric on May 24, 2013 at 8:30am

seems fishy..thats entirely too wide for a line that is a maximum 6 to 7 feet deep at most.  20 foot would do.  I am betting there is more to this easement.  they will likely try to put more in it than they are telling you with that width.  some may be temporary easement also and not permanent.  get clarification.  water lines can generally go almost anywhere so i would not be to over reaching on price.  if you are concerned with pipe issues you should ask them what type of material and specify ductile iron pipe. 

Permalink Reply by JK on May 24, 2013 at 12:23pm

Skip,

Fang is also right and I will add some additions.

You will want to specify exactly where on your property this ROW and pipeline are to be located. If it's at all possible, consider having the line along the edge of your property so as to not disturb the rest of the property. (We did this with CHK.)

If you don't then they will chose where they want and proceed with no regard to your wishes.

Let's not forget Chevron IS an energy company also meaning they could use their pipeline for lots of other products to be transported.  

Permalink Reply by Skip on May 25, 2013 at 4:53am
Wow..thanks so much for your response!
I'm just so thankful that I signed up to this forum. I can now see that I'm no match for these shrewd Chevron people.
If I hadn't come here..I could have list my shirt with these people.
Thank you so much.. I may just post the agreement here..
Permalink Reply by Jim Litwinowicz on May 24, 2013 at 3:50pm

Skip; great news...if you don't have an attorney, Fang has "friend" that can help.

Permalink Reply by Skip on May 25, 2013 at 4:57am
I don't have an attorney..did I say how much I like Fangs 'friend'..??
:D
Permalink Reply by Skip on May 25, 2013 at 4:46am
No..no attorney as of yet. Like I was telling Eric..not sure who to go to around here. All the attorneys around here came out if the woodwork like bees on honey. I have the easement agreement..not yet signed. I may just post the meat of that document on here..
Permalink Reply by Skip on May 25, 2013 at 4:35am
Hey Eric! Thanks for your response. Chevron said it was indeed a 24 in line and he said it would be dug past the plow point. He didn't get too much into specifics..well do that at this next meeting.
He left us an easement agreement..but we have not signed it.
We don't have a lawyer. I know we need one but not sure who to even get at this point. Figure the gas companies have their hands in the lawyers pockets around here..if you know what I mean..
We are VERY concerned about the pipe they would use..our property..the damage that pipe could do if it ever broke.. Just SOOO much to think about.
But I'm going to get answers to all of these questions that you've asked me here...not mentioning any names or where I got my info.
I just so thankful for your response..as well as the others I've gotten on this forum. So gratefully appreciative for all this help.
Permalink Reply by Jack Straw on May 24, 2013 at 9:45am

Skip,

I do not want to say compensation is not important .... but I consider the terms of a ROW agreement to be more important. A few of the types of clauses you should consider:

You want a termination clause .... when the pipeline is no longer used for it's specified purpose, ROW is terminated (with removal of pipe, at your option). You do not want ROW to be forever.

You want a clause defining what size pipe and what it can ONLY be used to transport (fresh water); no additional pipes, nothing but fresh water.

You want an ironclad indemnification clause (absolving you of all liability).

You want a minimum depth of 4 feet (maintained).

You want fencing/gates, so that it does not become an ATV race track.

You want the manner specified in which top soil is preserved and restored.

The above are a sampling of a few of the types of clauses you need to protect you and your property.

 

Chevron are famous for their San Francisco Lawyers; you will need your own (experienced) Attorney to negotiate any agreement.

Do not agree or sign anything until reviewed by your Attorney.

You want a clause such that you will separately reimbursed for such expenses as your Attorney's fees, any timber/real estate appraisals, etc.

Take YOUR time in negotiating, do not let them push you to agree to anything until you are fully satisfied with all terms and have had it reviewed by your Attorney.    

 

Once Chevron agree to the general terms of the ROW Agreement, it is now time to look at compensation.

Now lets talk money: I suggest compensation of $2/inch-foot for a fresh water pipeline.

$2/inch-foot x  24 inch pipeline = $48/running foot of ROW

($48/foot for a 24" pipeline).Add to this any damages and expenses.

This is just a "ballpark" suggestion, exact amount dependent  upon your exact circumstances.

 

Good luck.

 

All IMHO,

                    JS

Permalink Reply by Skip on May 25, 2013 at 5:19am
Cannot begin to THANKYOU for this information!!!
I was a huge target..meat and potatoes..with all the trimmings..for Chevron..prior to this forum.
But not anymore! I'm going to be "armed" subtly with weapons of wisdom before I allow chevron to come any closer!
My land is my piece of the earth that God has given me for working hard all these years..busting my butt at a power plant for 33 years..not missing hardly a day of work that entire time.
My plant is going to be closing..and seniority doesn't count anymore.
I've given my life's blood for that plant to provide for my family. I knew I was living in the heart of the Gas explosion ..and I pray that maybe I may get royalties..and I'd be grateful for any amount. If my plant closes.. I'm too young to retire..too old to get hired anywhere else. If I don't stay until they close..I'll loose all my benefits I worked years to have.
I don't mean to go off topic...but I've got enough on my plate to deal with and I could've overlooked this chevron agreement easily.
So all that you said here is truly greatly appreciated.
I need more time to look this agreement over. No wonder they keep biting my heels to sign. Not in a rush..and not loosing my land over being ignorant of this whole process. Thanks again!

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