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Permalink Reply by Janice L. Hancharick on May 27, 2015 at 4:22am

This is an excellent thread on the subject of pipeline prices and the thought processes of companies who want the ROWs.  I was glad to get the ball rolling and even more pleased to read Michael Allen's and Bob Shaw's responses.  As for homeowners insurance fees going up @ renewal time, that did happen in rural PA on @ least 2 occasions. Perhaps it was the result of an over cautious company, because the pipeline company did follow the regulations in place @ the time.

GMS and its followers continue to serve us all well!

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Permalink Reply by Michael Allen on May 27, 2015 at 5:40am

Some good perspective from Bob Shaw above. One thing to remember, if the pipeline company has no eminent domain power, then the negotiation is across the table. Meaning that in the end, if you come to an agreement, virtually all of the money is taxable since it is a willing seller-willing buyer situation. Some will say that there are "damages", but in reality, there are no damages. All of the surface damages are fixed by the pipeline company. Unless you can prove you used the money for improvements; gates, fencing, road maintenance, etc, then it's all income.

On the other hand, if the pipeline has eminent domain power, then any agreement is under the threat of a "taking" by the company and is not a willing seller-willing buyer situation, even if you agree to their terms. The threat is still there. Under these circumstances, all of the easement money is not taxable unless you sell your property within 20 years and even then the tax is discounted. However, the money for the temporary work space is essentially a rental and is taxed as income. Of course, any crops including timber is income. If you are dealing with a company that can condemn you, then you should ask for a letter from the company alerting you that they have the power of eminent domain. You need this evidence for your records. You should also either have 2 checks written, one for the easement money and one for the temporary work space, crops, timber, access roads,etc. Or, you will need a break down of how the total check is split. If you have any say in how the checks or the split is done, put as much on the easement payment as possible to avoid taxes. While I am not a tax consultant, there are IRS bulletins describing this situation regarding eminent domain takings, and your tax man should be familiar with this situation.

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Permalink Reply by 1s7k1qp9wk1t7 on May 26, 2015 at 1:25am

This is very serious business and you only have one opportunity to get it right. My suggestion is do what I did and talk to the folks at Landowners Pipeline Group. They are super sharp attorneys that will get you max dollars AND protect your interests going forward. Their fees are very reasonable considering what they do and get for you. I couldn't be happier. You can reach them at 740-815-5401.....ask for Sherry Hartong. Hope this helps you

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Permalink Reply by Janice L. Hancharick on May 26, 2015 at 3:47am

There are numerous firms willing to help you w/this. LPG is out of OH.  Take note of #2 under today's Top Content.  You are not alone.

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