SWEPI/SHELL Right-of-Way Agreements in Western PA - Please Review Carefully

I have received several calls from western PA landowners and they have provided me the Pipeline Right-of-Way OPTION Agreements presented to them by SWEPI over the last couple months.  I really want to urge landowners to carefully and thoroughly review these Option ROW Agreements before you sign anything.  

I have worked extensively on Pipeline ROW agreements across PA and find this proposed option agreement to be very troubling in many ways.  Landowners must really make sure you not only understand everything in the ROW Agreement that you are presented, but also understand what type of future activity you are exposing your property to, and at what compensation rates in the future.  It is often much easier to think about today than what the future holds.

I get calls virtually every week from landowners who regret signing company friendly ROW and other gas related agreements.  Please do not make the same mistake and regret it later.  Remember, just because someone else, or even many others, entered into bad agreements does not mean that you should do the same.  I am really concerned that landowners are signing ROW Option Agreements that they are going to regret later.  

I have reached Pipeline ROW Agreements with dozens of separate companies all across PA, including several with SWEPI in Tioga County.  I have serious concerns about the ROW Agreements that landowners in western PA are being presented with ,and how the landmen are reportedly pressuring them to sign quickly. Think about it, what is the rush to sign quickly when the ROW Agreement has a 3 year company option?  Please do not be pressured or rushed.  These are important decisions and require careful consideration. 

Also remember, if landowners refuse to sign inferior agreements the companies will have little choice but to present new agreements with better landowner terms.  Please be careful, and please get qualified, experience assistance.  With good credible advice and qualified assistance you will always make the right decision for you and your property.  Please be careful, and be informed.

Douglas A. Clark, Esq. - Protecting Pennsylvania Landowners

 

 

 

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Permalink Reply by Mike Coles on February 8, 2013 at 7:10am

I can give 2 real life examples.

1.) I was asked to do an appraisal for 'just compensation' where a big interstate pipeline was going across the property.  The owner was really looking for a big payday.  The pipeline was going through and old pasture area that had grown to brush at the rear to the parcel.  The new pipeline was also next to an existing pipeline. Furthermore, the existing pipeline right-of-way was wide enough that there was no new 'taking'.  The only compensation being offered was for the temporary construction easement.  The offer made to the land owner was fair.  I didn't do the appraisal.    [This is why agreements should be for 1 pipeline.]

2.) I was asked to appraise a large (say 100 acres for this example), level, well drained property next to an interstate interchange.  The parcel was a prime property for retail development.  The problem was 20+/- years ago a large interstate pipeline was put through the middle of the property. Provisions in the easement allowed for "continued present activities".  At that time it was a corn field.  The owner could continue to drive farm equipment over the parcel but no permanent structrues were allowed over the pipeline or within 50' of each side (total width 120').  The end result, because of parcel shape and pipleine location there was 40+/- buildable acres.  The national buyers for retail land wouldn't even look at the parcel.  'Price paid per linear foot' is an easy number that can do serious injustice to the individual propery owner.  What really matters is how the pipeline is going to affect your individual property now and in the foreseeable future.  Just by reading this far your gaining knowledge and understanding the need for qualified professionals to help you. 

Permalink Reply by Samuel J. Orr on February 8, 2013 at 3:48pm

Superb examples and very helpful information! Thanks!

Permalink Reply by pea eye on February 12, 2013 at 2:10pm

Clark's message reads like a lawyer's advertisement for services.   If you want to know why he thinks you shouldn't 'rush' into a ROW agreement with SWEPI and Shell, it will cost you to find out from him.   No clue is this e-mail message, despite his enticing headline, of what any of the dangers are.   Just "please get qualified assistance".

Permalink Reply by Mike Coles on February 12, 2013 at 3:53pm

If you want learn more about SWEPI and Shell just go listen to the radio show on this subject.  The post that started this discussion was free and the radio show is free.  The point is to help people understand what they are facing as land owners.  Coming from a rural/farming background, people are independent and proud.  Land owners believe they can negotiate with anybody about anything when it comes to their land.  (That's the way my dad was) In doing my real estate appraisals, I've heard it so many sad stories from land owners ending with, "I wish I knew then what I know now, if only I'd gotten some good advice".  The truth is the typical land owner is no match for an 'oil & gas' company, pipeline, etc.  Its the equivalent of guppies swimmin with sharks.  As professionals were trying to help people understand the importance of good counsel. Its hard to find the line between offering advice and making it sound like a solicitation.  I am probably guilty of it too.  But I would think the last thing somebody would want to do is discourage the professionals who deal with these issues everyday from offering a little free advice.

Permalink Reply by pea eye on February 12, 2013 at 5:10pm

My, lawyers are thick as thieves on this website.   They'd be most welcome if they would actually give some concrete advice beyond "you need to hire a lawyer".

Permalink Reply by Lance Nimmo on February 13, 2013 at 2:10am

Blasphemy! LMFAO

Permalink Reply by James Brink, Esq. on February 13, 2013 at 11:02am

More important, RAP, is that a lawyer cannot establish an attorney/client relationship on a list serve.  While general questions and answers can be lobbed back and forth, the legal advice must be reserved for specific instances dealing with real individuals.  Since most of the people on this list serve use an alias, you are right when you say one never knows with whom one is speaking!

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on February 21, 2013 at 4:38pm

THAT is reasonably for an individual's 'self-preservation/protection'...what is too confusing about that concept? and you're RIGHT, James - MANY people you think may be 'one way' - you go to read through their posts & begin to think something else...wolves in sheep's clothing. Thank you for wearing your Esq. tag.

***Something that I have proposed to the site itself - maybe James & Doug & others will perhaps have MORE PULL with Mr. Keith Mauck (Site Publisher)...it is THIS:

1) LANDOWNERS: 'name' stays in the ***'shale blue' tone***

2) G/O 'Connected' individuals (and ALL those related...): 'name' is shown in RED, or some other *DISTINCT 'color key'.

   a) Lawyers - PURPLE

   b) landmen - green

   c) G/O executives/associates - GOLD

   d) PIPELINE - brown

***THIS would HELP in AIDING individuals to FIND HELP with what they are really seeking.

What has changed, what has stayed the same....

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on February 21, 2013 at 6:04pm

WELL, Mike C. - you know, as WELL as I do that 'ALL information is GOOD information'. That there is something to glean from EVERYTHING that you read everywhere. YES - you are right in the FACT that these LANDOWNERS ***ARE*** honest & hardworking individuals. The 'time' of your father & mine is NOT 'today's time'.

Real Estate Appraisal IS tough, and as far as I understand, gotten quite a bit more regulated. How many hours of class AND THEN 'experience time hours' does one need to acquire their license nowadays?...and YES, in TODAY's day & age - the "I wish I knew then what I know now, if only I;d gotten some good advice."...'THEY' (G/O Co.'s - from the 'bottom up'...) wanted to 'button up' EVERYTHING DECENT within 'stone's throw' distance. They pretty much 'did it' - USING little 'local area' individuals whom the LOCAL LANDOWNERS ***TRUSTED***.

YOU would understand what I'm now going to convey - being of 'rural/farmland backround'.... ***Think about it: *HOW would anyone from Texas, or Oklahoma, or Idaho - or Russia, or India (Relliance...?), or China *be received (*into their homes) by these good folks* to TRY to lease their land?...***they WOULDN'T. ***NOR would the 'BIG G/O Co. boys'....

-----------*THAT is why they had the 'LITTLE LOCAL G/O Co.'s' ***button up*** the 'local LANDOWNER'S LEASES!!! (***PROBABLY someone that they even *KNEW* - the 'land lease man'!!!***)

-----------------------------------------------------------

---These LANDOWNERS *ARE* SMART! THAT is *why they 'HAVE what they HAVE'...and they have been *schiestered out of their 'promised land'*.

It's just not right. No, it is not. 

I MAY be being a bit presumptuous here & stretching a 'bit too far', BUT we ARE 'in America'...and as crazy as it sounds - there MAY be a solution to the 'falderal' that has OVERSHADOWED this area of the country. IF you would so please - read my idiotic thoughts that MAY give not just 'hope', BUT a solution to 'ailing American LANDOWNERS...if you would waste a bit of your precious time...(I too am a landowner.)FEEL you got a 'BAD' G/O Land-Lease Deal - you probably DID. - so, ...

I personally DON'T care IF  'people' (from what I can gather - G/O individuals...) TRY to make what I propose seem odd - a bit of a stretch...WELL - you go on now sometime & read for yourself...COULD be the solution to MANY of the problems mentally bore by various LANDOWNERS....

GRACE. - GG  (As one light lights another, nor grows less - so nobleness enkindles nobleness.)

Permalink Reply by Keith Mauck (Site Publisher) on February 15, 2013 at 9:21am

Regarding Doug Clark not offering more detailed advice, I would encourage you to check out his weekly radio show, “All Things Marcellus™” which is available for free through iTunes and on his websites. There is also banner in the right side column of this website prmoting the show. Why is his banner there? Because he is a fan of this site and sponsors GMS which allows us to keep it going

Regarding the show, he spent the majority of two hours on the radio shows of February 2nd and 9th of 2013 discussing the SWEPI ROW which he referred to in his post.  There is a lot of useful and free information for landowners with much more detail through the radio show.  I think you will find a lot of detailed and concrete advice on the radio show.  I just wanted to put it out there in fairness of Mr. Clark that he does offer a lot more detailed advice for free through his radio show.

Permalink Reply by pea eye on February 16, 2013 at 5:36pm

Thanks for that info, Keith.  I didn't mean to be rude.   I guess I was annoyed to click on the subject and get no clue what the land mines in the SWEPI ROW were, that he was referring to.  The radio show is news to me.   I will click on his show when I get the chance.

Permalink Reply by Lance Nimmo on February 22, 2013 at 2:43am

Pea, did you listen to it? Any good points?

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