PERMANENT PIPE LINE ACCESS ROAD

I now have a temporary access road on my property and have been told that the pipeline company might want to make it a permanent access since they are locating a connecting valve on our property.  What is the going rate for permanent access and what do I need to look out for in the contract.  Thanks in advance for any info.

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Permalink Reply by Zack Jameson on August 3, 2014 at 7:42am

I bet you're dealing with MarkWest......beware!

Permalink Reply by John on August 3, 2014 at 7:55am

 Not sure about access. However, we have been approached by company (cant remember name) about TEMPORARY water pipelines essentially to feed water from a water source to the pad site during the completion (i.e. fracking) process. The price we were quoted is $3 a foot.  No idea if this quote is good bad or indifferent.We would be compensated each different time this is done. In other words if six wells drilled would be compensated six different times. Anybody have any knowledge/experience with this?

Permalink Reply by evan on August 3, 2014 at 8:11am
Beware john. I just did this and was told one line. It's a three year easement. Was just told there going to put another line and possibly two more that I won't be paid for. I would never do this again. I tried to do my part to help. It's been a freaking nightmare some of the idiots I have on my place now. They wanted a five year deal but we did three. I wish I would have just done a one year easement. Nothing but a huge huge hassle. Nothing wrong with doing it jus make sure they pay you for each line and booster pump (I've got 2 pumps possibly more to come).
Permalink Reply by Philip Thackray on August 3, 2014 at 8:12am

John,

Here in PA the temporary line can only be laid for 90 days.  During that time they can frack as many wells as they want without paying the pipeline right of way owner additional money.  At the end of 90 days the temp line must be gone.  If they want to put the temp line back up at a later date then they would pay again.

Things might be different in your area (Ohio?).  A good oil and gas lawyer in your area would know the going rate for a temporary pipeline.  They just put a temp line on my neighbor's property but I don't know what he is getting paid.

Phil

Permalink Reply by John on August 3, 2014 at 8:27am
Again, thanks for info. Luckily, have just been approached and given quote at this point. Have not signed a thing. We have one of the best og attorneys around and will get him to look at it. I'm in carroll county ohio by the way.
Permalink Reply by Zack Jameson on August 4, 2014 at 3:11am

Just remember, regardless of what your agreement states, like the saying, it's only as good as the paper it's written on. Once these companies set foot on your land, it suddenly turns into their land. They more or less take over. Beware is the the advice.

Permalink Reply by Robert Allingham on January 21, 2015 at 5:46pm

Philip, I'm trying to find the regulation or law that says temporary lines can only be laid for 90 days (in Pa). Can you help? I want to address this with landman if true. Thanks in advance. Bob A.

Permalink Reply by Philip Thackray on January 22, 2015 at 2:00am

Robert,

I'll email my contact at XTO

Phil

Permalink Reply by Philip Thackray on January 22, 2015 at 4:36am

Robert,

My XTO contact got back to me.  The 90 day limit is an XTO guideline not a PA requirement.  The 90 day PA "requirement" was told to me by a neighbor who had a temporary water line on his property.  Obviously he was wrong.  Sorry for the error.

Phil

Permalink Reply by Robert Allingham on January 22, 2015 at 4:46am

Thank you Philip for your time and help.

Permalink Reply by Jack Straw on August 4, 2014 at 6:03am

My strong personal opinion is that you should not sign a permanent ROW agreement.

My strong personal opinion is that no ROW should be forever; on the sole basis of a one-time payment.

My belief is that any ROW agreement should specify exactly what that ROW is for; and once that ROW is no longer being used for that agreed purpose, the ROW is to be terminated.

Even if the ROW will be used for 200 years (for its intended purpose), I believe that once it is not being used for the agreed to purpose, the ROW should be terminated and the property owner at that time regains full unencumbered use of that land.

All IMHO,

                 JS

Permalink Reply by INVICTUS on August 7, 2014 at 12:23am

My personal opinion is that you should NOT, under ANY circumstances, take any pipeline ROW if you can avoid it. Forget the money, UNLESS you do not care about the Land and see it as expendable anyway.

I could preach about the reasons why for an hour, but a pipeline ROW is, effectively a sale of that portion of the land, forever.

BTW, you will find that companies are unilaterially converting these easements to permanent ROWS, usually without authority or landowner's knowledge.

The money NOWHERE near sufficient.

Where would sufficient start?

In my opinion, at least $100/foot and an annual rental payment.

The money that Pipeline operators are getting from producers is staggering.

BTW, the pipeline operators are set up as master limited partnerships, and pay virtually no Federal income tax. There are "Pass through entities.

I can assure you that their methods of operation are being monitored by those in a position to do something about their often dishonest and sometimes criminal behavior.

I'm not kidding or posturing when I say that either.

Best of Luck. Carroll is ramping up very quickly and steadily.

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