Replies to This Discussion

Permalink Reply by Billy Bob Meeker on April 26, 2012 at 7:10am

As of mid-March 2012, the current easement payment being discussed by the pipeline agents in Harrison Co., OH, is a one-time $15/linear foot. 

Using a ROW width of 50', and 43,560 sq.ft./acre, this would be a strip of land 871 ft. long.  , etAt the present quoted rate of $15/linear foot and a 50' ROW, the per-acre value is $13,065.  As before, this would be a strip of land 871' long. 

Maybe $13,065/acre is a pretty good price for Harrison Co. property, but considering the millions of dollars worth of gas that would pass through a pipeline, it sounds like chump-change to me.  As has been stated before, our land is our asset.  

Remember, this $15/ft. is their INITIAL offer to you.  Remember that 2 years ago that the INITIAL gas lease offers were only $250/acre?  Now they are approaching $6,000/acre.  So, why would you consider accepting only $15/acre now??  What is the hurry??  I have recently heard (NO VERIFICATION) that the per-foot price is  up to $75/ft.  They threaten to "relocate" the pipeline to adjacent property??  I can tell you from personal experience that a pipeline on your property is not a good thing.  I own one farm that has 2 pipelines on it already and they are a PITA.  You can't build on the ROW, you can't dig on the ROW, you can't sell the ROW, no one wants to build anywhere near the ROW, the gasline company can access your property whenever they wish, and you still have to pay the full property tax on the ROW.  The ONLY thing you can do with the ROW is plant crops on it.  And this agreement is FOREVER!!  Unless you really need their money, in my opinion, I say good riddance to them if they chose to relocate the line.

Also, consider this ... Why should a pipeline ROW easement be a one-time payment for a "forever" easement?  Although the pipeline companies would fight this tooth and nail, why not propose an "easement lease"?  

Pipeline company would pay an initial fee ($15-75/ft) for a 5 or 10 year easement lease (defined width, defined route, specified number of pipes, etc.).  At the end of lease period the pipeline company has right to renew the easement lease for an additional term for the same initial fee plus, say, an additional 15%.  The easement lease term could be renewed indefinitely at the pipeline's choice, but each renewal would be for a fixed term and an additional fee and escalated an additional 15% each time.  Failure to make a renewal lease payment after 6 months of expiration date results in forfeiture of easement back to landowner ... including whatever is buried in easement.

If the gas companies want to make millions of dollars from the gas, we and our children/grandchildren should get a decent cut for allowing it to pass through our property.

Permalink Reply by Jim on April 26, 2012 at 9:31am

An article from the Wheeling Intelligencer on July 28, 2011 states that companies were offering $15-$35 per foot for gas piplines in Ohio County.  The article is titled "Money Differences Plug Progress on Pipelines" by Casey Junkins.  When negotiating, it's best to have some figures in hand than hearsay.

I would compare mineral rights signing bonuses from July 2011 against the $15-$35 pipeline easements of July 2011 with signing bonuses of today and go from there. 

Permalink Reply by Billy Bob Meeker on April 28, 2012 at 7:35am

Again, I suggest that landowners being approached for a pipeline ROW consider demanding a renewable "right-of-way easement" rather than a one-time payment for a "forever" ROW.  See my posting above near the beginning of this thread.