Easement agreements are formal legal agreements granting the pipeline operator long-term use of a right-of-way. A change in ownership of the property does not alter the easement agreement. Because easement agreements are legally binding contracts, landowners should have the contract reviewed by an attorney before signing . Many aspects of a pipeline easement are negotiable. The landowner should consider any contract offered to be a starting point for a two-way negotiation, or it can be fully accepted or rejected by the landowner.
Following is a list of some considerations that should be included in a pipeline agreement or addressed with an addendum:
Payments to landowners for granting right of way easements can be quite variable between pipeline operators and from location to location. Most payments involve a set dollar amount per linear foot (or per ‘rod’ which is 16.5 feet). Historically, easement agreements have ranged from less than $5.00 per linear foot to more than $25.00 per linear foot.
There is a post on GMS indicating a current offer of $50 per linear foot.
Some pipeline operators will also offer a ‘signing bonus’ (a fixed dollar amount for signing an easement agreement) in addition to the payment per linear foot. The amount and terms of payments need to be in writing before signing an easement agreement.
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Permalink Reply by Al Cramblett on May 25, 2012 at 3:29am A very informative article on pipeline easements is available at the link below:
Companies looking to tap into Utica shale need permission Source: cantonrep.com
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