In case some of you didn't read the Sullivan Review this week of March 3, 2010, the MARC I hub line is a go! 

 

The article says that "Inergy will be sponsoring a "binding open season" to determine the final size and scope of the project in the next three weeks. Inergy expects to file a Natural Gas Act 7(c) application with the Federal Energy Regulatory Commission for a certificate of public convenience and neccessity in the Spring of 2010 and anticipates the North-South Project to be placed into service by late 2011."

 

It also says, "The MARC I would open Sullivan County up to the extensive Marcellus Shale natural gas development that is being seen in Lycoming, Tioga, Bradford and Susquehanna counties as the producers would have access to a large interconnected pipeline system serving the major natural gas consuming northeastern United States."   For maps and information go to www.stagecoachstorage.com

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Marc 1 is approved 

got call from their lawyer today. said they are starting condemnation proceedings against us. marc one is a go. 

"CNYOG states that it has acquired, or is acquiring, the rights to the
land to be used for the MARC I facilities through negotiated agreements with
landowners, thus minimizing the need for the exercise of eminent domain."

 

Seems to me they are not following what they stated above. They have left messages to others that they will start condemnation proceedings Thursday if their offer is not accepted. Seems that they are not minimizing the need for eminent domain. They sure do not understand the word negotiate. 

Google     Marc 1 pipeline map

VG,  I think your advice is somewhat misguided in relation to the Marc 1.  I agree that landowners MUST do their homework regarding pipeline negotiation for non-FERC pipelines.  However, the Marc 1 is a FERC regulated venture that now has the certificate to proceed.  At this time, landowners involved who have not negotiated in good faith and come to a resolution face emminent domain action which will lead to lower payment, court ordered agreement and attorney fees if they choose to fight.  In most cases, the payment will be equal or less than what they have already been offered and attorney fees will take up a significant percentage of that payment.  In some cases, it is conceivable that the net will actually end up negatively impacting them as the attorney fees will be greater than the actual court ordered restitution.  In the end, the only benefit for those landowners who have not entered into an agreement with CYNOG will be in relation to any attorney they may hire.  Most have had more than 24 months to come to an agreement.

How much per foot is offered?

we had a total of 3 contacts with the company negotiating for the pipeline.  they never negoitated fairly.  we actually had to contact the federal government and complain about the lack of good faith.  We finally heard from their lawyer 2 weeks prior to getting the letter of condemenation.

I am sorry to hear that was your experience.  We were told about possible eminent domain proceedings, offered a price which was only slightly negotiable but given many options regarding placement, access and reclamation.  The info was not necessarily what we wanted to hear but it was honest and straightforward.  I believe most would call that fair.  Unfortunately, some people don't believe negotiations are fair if they don't get the price they want.   In a FERC pipeline situation, national  goals supercede individual's ability to make money.  The price point is rarely negotiable.  On the other hand, gathering lines are open season for price negotiation and often times landowners can get a great offer if their land is prime location.  As many have said on this forum the key is to stay informed and realize the difference between various situations.  This is a complex business.

i think if you own the most land affected u should have the most say.   that did not happen.

From what we have seen the major influence on market value seems to be the presence of a well and royalty payments.  (consider the 50+ acres sold in Troy for well over 1 million)  Therefore, we took an educated gamble that the pipeline would allow for development of the land in Sullivan County increasing our chances for royalties.  This alone would cause the market value to increase if we needed to sell if we were willing to convey mineral rights.  Subsequently, we have subdivided 5 acres and sold for well over $20000 per acres which was unheard of merely 2 years ago.

Additionally, we felt strongly that anything we can do to help the US get off of the dependence on foreign oil is a positive.  It was our hope that the development of the Marcellus would eventually lead to this if the environmental extremists do not create an untenable situation for the gas companies.  Most of these emotionally violent people do not live in rural America but rather have a second place where they think they understand how nature works.  That is why we have devastating flooding after years of neglect in maintaining streams and why a 50" wide natural food plot can somehow be seen as negatively altering nature.  If you put 100 local residents who have grown up and lived in our area their whole lives in charge of policy you would see a much better environmental result which would also enable human rights to protect their hard earned property rather than just those of the timber rattlesnake, selkirk violet, etc.  As opposed to common opinion, most full-time local residents want no harm to our environment but will accept change if it is for the greater good.

Finally, the company -CNYOG- who will to invest $250 million + should have equal say and landowners must assess whether they want to risk eminent domain proceedings.  Our assessment was that the only winner in that situation is the group of attorneys involved.  My hope is that those who chose this route end up with something left other than just the pipeline, which inevitably will be placed across their land, and an attorney bill greater than their payment.

 

I see in this weeks Sullivan Review that 53 Sullivan County properties will have condemnation procedures brought against them to get the Marc 1 through.

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