Need Help with Pipeline Lease

Hello,

Last night a guy from Oxford Oil came to my house and handed me a contract to put a pipeline through my place in Guernsey County.  He acted like I should just sign it because "it would get me Christmas money." They are paying $10 a foot.  I don't know anything about piplelines....

What I want to know is, can they force me to do this?  I asked him what would happen if I said no.  He hemmed and hawed and said that they would have to go around and it would be a long way. He stated that I am the "last piece in the puzzle."

$10 a foot does not sound like it is a very good deal either.

Also, I skimmed the contract and basically it gives Oxford (or whoever) the right to have regulators, compressors, etc. on my land.

Before I go to an attorney, does anyone have anything to say about this?

Sue

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Permalink Reply by Florence Sumler on December 19, 2013 at 10:06am

It is not a good price. We just got one (Noble Co.) and for 403' (in 2 pieces) they were paying around $12-13,000. OK, but not good. He told us in 36 months we would be paid the same. Looking at the contract though it said [again same $ but in parenthesis said Less orig. on partial wording]. I questioned & questioned him & he said we would be paid same $.  Well, both my husband & I know that a signed lease supercedes anything word of mouth; not matter what pipeline man was telling us.  He was so ready he was even going to bring over a "notary" with him for signatures that night.

We are newbies but I felt then that something was wrong & smelled downright FISHY" so we made appt with attorney. Their fee is 1/3 of what they get for us "OVER & ABOVE" what we would have received in the original lease so it's no skin off my back. Attorney also told us to hang tight, not be so quick to sign lease, and that he & his partners would be able to get us something more "significant" than what the pipeline man was willing to give us. Attorney also told us Ohio does not have emminent domain.

I don't know much about oil & gas and pipelines, but it seems to me you might consider checking it out with an attorney anyway (just for the what if) .  Ask for one that has a free consultation hour.      

Permalink Reply by Garry L Miller on December 19, 2013 at 11:47am

IF YOU are getting pipe line you want wheelage no matter what you get [aid rest of your life an your family will after your gone

Permalink Reply by Josh Willis on December 26, 2013 at 6:03am

Can you find anyone who has ever got wheelage, not likely. Especially in this connected world we live in if they did it for one landowner then everyone would find out and want it also. Instead they will continue to keep putting the ROW on people who will settle for a decent one time payment and go around the one who make demands like wheelage. Not that I think it would be a bad thing to get some kind of recurring payment it is just unlikely.

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on January 5, 2014 at 8:08am

Florence - go with your GUT...& read & read & read, ask, ask, ask & know - best you can, for yourself & family...YOU look at your position - WHY are they pursuing this so hard?...what is so important about your land layout that they are after it?...think, think, think...

...Josh Willis's 'wheelage' comment pretty down to earth, BUT if you don't ask (insist?...) you don'r get. Bottom line: What are YOU willing to take? educate yourself & know, know, know...

As one light lights another, nor grows less - so nobleness enkindles nobleness.

Look into how things are out in Texas - their area has much more development in these matters - THEY are 'old hat' at this...WE are 'new school BABES!'...in the woods?...just stay sharp.

Permalink Reply by Florence Sumler on January 5, 2014 at 8:18am

Thank you for info.  Yes, we did go see an attorney that specializes in Oil & Gas & Pipeline and hopefully will be hearing from him this week. Flo

2z248p19vqnh9Permalink Reply by 2z248p19vqnh9 on January 5, 2014 at 8:48am

God be with you.

As one light lights another, nor grows less - so nobleness enkindles nobleness.

*PIPELINE ROW COMPENSATION "WHEELAGE" - Go Marcellus & Utica Sha...

*Pipeline ROW is forever - Go Marcellus & Utica Shale: Leasing, ...

*http://pubs.cas.psu.edu/freepubs/pdfs/ua465.pdf -- Negotiating Pipeline Rights-of-Way in Pennsylvania - READ...

--------------------------READ---

Here are a few discussions & other that should help you with YOUR reSEARCH...

Remember, you want to educate YOURSELF so that when you DO 'talk to a lawyer'... you'll have a glimmer of an idea what they are saying/explaining (or NOT saying/explaining...). YOUR 'ball' - YOU 'bounce it'!

Permalink Reply by Busy Bee on December 19, 2013 at 11:54am
$10 per foot is a very low offer. How big is the pipe ? I know a lot of the larger pipeline project are paying a great deal more.
Permalink Reply by Billy Bob Meeker on December 22, 2013 at 3:50am

Susan,

First I must state I am NOT an attorney, but I have been fending off pipeline land men for several years now (I'm in Harrison, Co., OH) as my family is being repeatedly approached by landmen wanting ROWs across our 240ac farm.  On Dec. 12, The Hiker responded to your question (page 1 of this thread) and he makes a very important point ... in Ohio there is a legal difference between an intERstate and an intRAstate pipeline.  Nearly all of the pipelines currently being laid in OH are intrastate lines and, as such, the pipeline company does NOT have the right of eminent domain, which means you don't have to accept a pipeline if you don't want it. 

The $10 offer is a joke.  Most pipeline ROW offers in Harrison Co. are STARTING at $20/linear foot of ROW for the first pipe and go up from there.  Agreements can vary all over the place and can include adjustments due to pipe diameter (for instance, $x for the first pipe up to a diameter of y inches and $z more for each additional inch in diameter of that first pipe; then $k for each additional pipe again adjusted for diameter; etc. etc.).  Whatever you do, should you choose to pursue a ROW agreement, do NOT accept the "standard"  ROW contact that the pipeline company offers ... these agreements are totally weighted in favor of the pipeline company.  Also, don't believe anything the landman tells you unless it is in writing ... many of these guys are snakes and will tell you whatever you want to hear to get you to sign.  You need to get an attorney with experience in pipeline ROWs to prepare a contract with lots of addenda to address all of your concerns.

Our family has refused all ROW offers to date.  We don't want a pipeline and, after receiving the lease bonus, don't need any more of their money or the loss of land value that comes with a ROW.  I've also read, that in rare circumstances, a lease can be negotiated that is not a "forever" lease, but is renewable by the pipeline company on a 20 year cycle at a predetermined fee for each renewal.  If I ever do sign an agreement it will have to be this kind of lease.  (If you PM me, I can send you a NON-LEGAL document that includes a lot of points to consider in negotiating a ROW lease.)

Summing:  1) In OH, if the pipeline is an intrastate line, you don't have to sign.  2)  Do not sign the pipeline company's contract at their initial offer.  3)  Get an attorney familiar with ROW contracts and work with him/her on a decent contract at a (or repeating) decent lease payment.

Permalink Reply by Tracy on December 26, 2013 at 3:12pm

I have a land man wanting to put a 12" pipeline through 1000 ft. of forest. How should I ask for compensation for all the loss of trees? Per tree over 8" ? Also, how much in general should I ask for?

Permalink Reply by Gusher on December 26, 2013 at 4:16pm

i made them come out with a forester and first give me a number for my timber then you know exactly what you are getting on the front end. as far as a 12 inch line you should be able to get 25 buck a foot

Permalink Reply by WranglerRouser on January 30, 2014 at 5:32am

Make sure you are the one who selects the forestry consultant.  Otherwise they will use "one of their guys" who will undervalue your resources!

Permalink Reply by Philip Brutz on January 30, 2014 at 9:19am

I made MarkWest change the route of their pipeline to an area that would minimize the damage to my woods.   

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