Columbiana County Pipeline

This site has been very helpful in educating landowners about shale drilling and leasing.....Lately I have seen some discussion on pipelines and ROWs but not a great deal of information ...it appears this is the next new horizon where we can help each other out.  

Today an agent for a broker in New Philadelphia...William C Abel...knocked on my door talking about the pipeline that is going to be built from the East Palestine area to Hannoverton.   Negotiations have been going on since March and it seems most of the agreements needed have been signed.   The only reason he was here was because they have moved the planned route and it now includes my property....and they are planning to walk the route starting tomorrow and rightly so...he realized he needed to talk to me first.

This is the same line that includes the county lands recently signed which was in the Mourning Journal and posted here.   I know this because the agent mentioned it...noting they paid them $12 a foot.....what he would be offering me if they decide to use the amended route...and I agreed.

I see from a message sent out to those who are members of this list that someone else was also approached recently.   

While tbere has been a bit of discussion regarding pipelines...I dont recall much back in March when surely folks were being approached... i see this like gas leasing...lets come out of the closet on this and not play into the hands of these agents who are like landmen and would prefer we dont talk to each other.

I did check out the agreement posted on the ALOV site....it looks pretty good and a better alternative to what I am sure the form agreement is that these agents offer first.   I would appreciate any comments on what you guys think of tge provisions included.

Company building the pipeline is Cardinal Gas Services....he admitted, yes a subsidiary of Cheasapeake....saving they are from Canton, Oh.....A little slippery like a landman....telling me what he thinks I want to hear...bending the truth...as Chk does have an office there.

The agent and I didnt talk seriously yet... I asked him basic prices he was talking and he quoted the $12 like the county paid.   I asked about pipe depth and he said 3 feet...while I countered that 4 seemed more reasonable and matched what I have in my gas lease.

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Replies to This Discussion

Permalink Reply by Mike Marston on July 11, 2012 at 12:07pm
I was contacted today from a gentleman named Duke Walker and he quoted me $15 per linear foot over the phone...and a $500 "consideration fee"
Permalink Reply by Linda Charles on July 11, 2012 at 12:13pm

Mike,   where is your property located and is this the first time you have been contacted?  Also...do you know who this Walker works for?   

I am in Elkrun township by the way.   And was also offered the 500 consideration fee.

Permalink Reply by Mike Marston on July 11, 2012 at 12:22pm
I dont remember the name of his company but it was also out of Canton. I have a meeting with him in 2 weeks. This is the first time I have been contacted. I am in Salem Township on SR 558.
Permalink Reply by Linda Charles on July 11, 2012 at 12:34pm

I did see that Cardinal Gas Services has several Easements filed with the county recorder...you can search for them on the recorders site to see if your neighbors are signed.   Did he mention why they havent talked to you before this?

Permalink Reply by Mike Marston on July 11, 2012 at 12:40pm
He did say he was new to this account/area (he lives in WV). Somebody may have tried to contact me prior to this and I just didnt recognize the company/name and never returned his call.
Permalink Reply by goldrush on July 12, 2012 at 4:49am

Hi, you wouldn't happen to be the same Linda Charles, who sold me the horse "bulldozer" a couple years ago, are you?

Permalink Reply by mark o on July 12, 2012 at 2:19pm

watch yourself...he is good!....do your homework

Permalink Reply by Linda Charles on July 12, 2012 at 3:01pm

Have you dealt with him ....and if so what else can you tell us about him or his company?

Permalink Reply by Indiana Smith on July 11, 2012 at 2:38pm

Penn State wrote some articles to help landowners in negotiating the easements.  PA has been going through this process for a little longer than we have, so they are seeing some of the issues before us.  Here is a link to a good basic article they published a year ago:  http://pubs.cas.psu.edu/FreePubs/PDFs/ua465.pdf

The main issues are as follows:

Limit the number of pipelines and specify the size.

Limit the width of the easement.

Limit or prohibit any above surface structures.

Make sure that abandonment is defined and make sure that the land reverts back to the landowner when abandoned.

Ask to be a "guardian of the pipeline" so that you may receive annual payments in addition to the the up front "bonus" and per foot easement money.

Landowner should be indemnified from all acts of ALL contractors and operators of the pipeline.

There are a lot of issues.   My father-in-law is currently dealing with a pipeline company that wants to put a new pipeline in an easement that was originally granted in 1902 for 1 cent per foot.  The easement was not landowner friendly and he has to deal with the mess with no compensation.  So, think about the future value of your property BEFORE signing.  

Permalink Reply by Linda Charles on July 11, 2012 at 3:41pm

Thanks for this posting....very informative.   I have been looking at several other articles as well...found by searching for pipeline right of way agreements.   Most match what you mentioned, except the guardian thing.   Can you elaborate on that further?   I think, like gas leasing, we need to educate ourselves and tread carefully.   Does anyone know.....in Ohio....can the gas company use eminent domain to force a landowner to accept placement of a pipeline?   This would impact negotiation leverage.

Permalink Reply by Indiana Smith on July 11, 2012 at 10:09pm

The "guardian of the pipeline" was mentioned at a meeting in Carroll county a few months ago. Here is an article about that meeting:  http://www.farmanddairy.com/news/pipeline-easements-are-the-next-st...

They can use eminent domain IF the pipeline is an interstate or intrastate, but not for gathering lines.

Permalink Reply by Linda Charles on July 12, 2012 at 12:04am

The eminent domain restriction for PA is like that too.......I did not know if the same was in OH.....so thanks for letting me know....So, in other words...not for gathering lines but for transmission lines?

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