Replies to This Discussion

Permalink Reply by Indiana Smith on November 16, 2012 at 2:55am

And what is wrong with that?  If you think the terms are reasonable, then go ahead and sign up. If you don't like the terms, then please DO NOT sign.

 I did not like the terms that they offered me and therefore I did not sign.  I offered them an amended copy and they did not sign.  We could not come to an agreement and that is fine with me.  Both parties need to win or there will be hard feelings in the future.  

These ROW agreements are FOREVER.  Once you sign, you NEVER get another chance to make changes.  So make sure that you research and get good advice (legal) before signing anything that will permanently affect the value of your property.

 

Permalink Reply by Dark Sonnet on November 16, 2012 at 4:22am

Very well stated.  There are many people looking beyond the immediate gratification of dollar signs and are realizing the future ramifications of these pipeline ROW's.

As you mentioned, they are FOREVER.

Permalink Reply by William Henceroth on November 16, 2012 at 7:23am

I agree.  I talked with one company about crossing my property.  I didn't like the terms and he said they could go around me.  As far as I know that is what they are doing as I haven't heard anything from them recently.  I know that they need pipelines.  I am just glad that they are going around me.

Permalink Reply by monty deruyter on November 17, 2012 at 8:21am

      Indiana,

     I never said this was a problem, I was just bringing up the discussion.

                                                                                                  Monty

Permalink Reply by Indiana Smith on November 16, 2012 at 3:26pm

Utica Shale,

First, I must mention that I am a farmer and make my living farming.  Therefore, my concerns are geared toward preserving the "farmability" of the land for the current and future generations.

There were several issues that I wanted resolved in the agreement.  Most of the issues involved ambiguous language that needed further clarification.  For example, there was a clause that stated that the grantee could access the pipeline from any direction in case of emergency.  As I've found out in dealing with these companies in the past, almost anything can be considered an "EMERGENCY".  I wanted to define which "emergency's" would be given unfettered access through my fields.

Another big issue was abandonment.  I've seen many lines abandoned and never removed, even though there was language in the agreement that stated they were to be removed by the grantee and the area reclaimed.  It can be almost impossible to force a bankrupt company to do anything, so I had a provision that addressed this issue and offered a solution.

Another issue was depth of the pipeline.  The initial depth was addressed, but there was nothing that stated that the pipeline had to stay at that depth (these pipelines will be here for at least 50 years).  It has been my experience that in certain areas, the pipeline can move closer to the surface due to frost, erosion, or normal farming activities.  If this happens, it can present a danger of being struck by farm equipment.  I wanted a clause that addressed this issue.

Another issue was temporary crossings to allow farming operations to continue while the construction, maintenance or replacement were being done to the pipeline.  The agreement said that they would be created, but did not put a timetable on how quickly they would be created.  If I need to harvest a field of hay before a rainstorm and cannot access it due to construction, I could lose thousands of dollars of alfalfa hay.

The double ditch method of construction was mentioned, but it did not have any way of forcing compliance.  I suggested soil testing before and after construction by an independent third party.

I could continue with more examples.  Again, my point of view is from that of a farmer and may not apply to everyone out there.  If my neighbor does not have the same concerns as me, then I will gladly let the pipeline go around me.  I have pipelines on my farm now and I know the problems that come with them.  I did not authorize them, they were already installed before I purchased the farms.  They decrease the usefulness and value of the land on both sides of them and can and do cause monetary losses to the property owner on a regular basis.  My post above was a simple warning to others to look beyond the one-time payment....

Permalink Reply by 0ym9x5ag7ury2 on November 16, 2012 at 3:31pm

Monty,  Did you know that the pipeline company that is asking you to sign for an 8 inch collection pipeline will then own your right of way and recieve payment for every pipe that crosses your land?

If you want to know more, search using my name and read the advice I have given on pipeline contracts.

Never sign a contract from and O&G company or a pipeline company, they have the same goal, to take what is yours.               Ron

Permalink Reply by Barbara on November 17, 2012 at 6:10am

Ron, we have been approached about a pipeline and would appreciate more information.  I am  not sure how to search your name to read your advice, could you explain that procedure?  Do I just try to searrch it on this site?  Thank you for your help.

Barbara

Permalink Reply by monty deruyter on November 17, 2012 at 8:24am

   

   Ron,

  My land will not be involved. I only own two acres and they would be to close to my house.

                                                                                                                              Monty