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 Powell on September 12, 2012 at 5:55am
They offered $10 + 2.50 = $12.50 per foot for the 2nd line. I'm trying to get them to use the ALOV ROW, but so far they just want to add addendums to the original ROW. I've got insurance coverage, 48" depth, no above ground items, etc... on there right now. Still negotiating.
Permalink Reply by Frank Nesmith on September 14, 2012 at 4:55am

Be careful folks. Word is that insurance companies are looking at significantly raising your homeowners rates soon because of pipelines. Can you write that into a contract that if the rates are increased due to a pipeline the company will pay additional rates? I don't know. I'm not near a pipeline as far as I know.

Permalink Reply by Blue Sky on September 14, 2012 at 3:08am

Does anyone know from looking at other areas, perhaps PA or WV, what a "fair" amount per foot would be?  We are in Columbiana County on the Brinker storage field with a strata lease.  Our property is between the Weaver well and the Hartz well.  We are getting a lot of emails and phone calls from an agent about a pipeline ROW.  The last number he quoted us on the phone was around $20 per foot.  We don't plan on signing anything right now until we have someone look at the agreement and we are satisfied that the amount is fair.  I've been trying to research but have found numbers anywhere from $12/ft to $125/ft. 

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on October 9, 2012 at 2:32pm

Blue Sky,

Use the link at the end of this note to learn all the information you will need on pipelines.

Go to alov.us and read the example Pipeline Right Of Way Contract which is a good example.

The general rule is $1 times the diameter of pipe, times each foot the right of way crosses your property. The number of pipelines, the content of the pipe and pressure should also be used to determine the value.

Make sure the depth of the pipeline and other rules for pipelines that are in your lease (alov folks) are used by the collection pipeline companies. For instance if they want to bury the pipeline 3 feet but the lease states 4 feet deep, hold them to it.

If you have the below statement put into your contract you will be paid each time a pipe is buried in your right of way. If you don't use it, the company you sign with will be paid for the each pipe that follows. The landowners know best how to spend the money that is generated, don't let some companies CEO horde your cash, thats what wrong with the US economy today, too many Kings.

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4. Purpose and Limitations on Use of Easement. This Easement is granted solely for the purposes and uses set forth and limited below:

a. Single Pipeline. This Easement allows one pipeline with a maximum diameter of __________________inches, and with the maximum pressure of product transported within the pipeline of _____ pounds per square inch. The pipeline shall be used only for the transportation of ____________________ unless renegotiated with the Lessor/landowner.

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There is more to know so read on using the link below. The document is titled:

What Land/Surface Owners Should Know When a Landman Shows Up And Wants an Easement/Right of Way To Put a Pipeline Across Your Land.

Prepared by David B. McMahon • Attorney at Law

Concentrating in Oil and Gas for Smaller Mineral Owners

1624 Kenwood Road, Charleston, WV 25314

Voice/VoiceMail 304-415-4288 • Fax 810-958-6143

E-mail: wvdavid@wvdavid.net

© May, 2010. David B. McMahon, J.D.

Contact the author for permission to distribute.

http://www.wvsoro.org/resources/advice/Pipelines_What_Surface_Owner...

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