Independent "landman" contracting for Mark West to obtain Right of Way agreements

Currently, we have been approached by a "Independent" landman to have us sign Right of Way agreements for gathering lines to be installed on our property.  He informs that he has been hired by Mark West  to obtain these agreements to have the infrastructure needed for gas to be piped to Mark West processing plant.  We are hesitant to sign giving this right of way without first knowing if this landman is indeed working and hired by Mark West to obtain these right of ways. 

Our concern is that per our original lease agreement, the right of way for  installation of the lines can, if we don't agree to sign, be installed regardless.  Reason we have the offer per the landman, is Mark West and the gas companies want to work with landowners in good faith and I'm sure to avoid possible litigation as to any possible landowners who would disagree with the location of such right of ways.  Comments, experience from other landowners in the Belmont area that have also been approached have more knowledge than we on this end would be greatly appreciated.

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Permalink Reply by Tim Tarr on August 31, 2014 at 4:27am

Does your lease have a "No foreign Gas" clause? If it does that would make a big difference.

Be very careful on this. I would consult a Lawyer before signing anything. Take the approach that that (or any other) Landman is a Used Car Salesman.

You should be able to get them to reimburse your legal fees at signing. (yes get that in writing too)

Permalink Reply by Dan Lease on August 31, 2014 at 5:01am

Thanks Tim.......

Mike MurphyPermalink Reply by Mike Murphy on August 31, 2014 at 5:13am

LANDMEN ARE CARPET BAGGERS AND ONLY OUT FOR THE COMPANY WHEN THIS PROJECT IS DONE HE WILL MOVE ON TO THE NEXT PROJECT AND FORGET ALL ABOUT HOW WELL HE SCREWED YOU AND YOUR NIEGHBORS ......SNAKE OIL SALESMAN 

015334grltd9mPermalink Reply by 015334grltd9m on August 31, 2014 at 5:19am

Reported by:

Mike Murphy of the Elwood Inquirer, breaking news or breaking wind, you decide. :')

Permalink Reply by Barry D on August 31, 2014 at 10:31am

Dan,

Not having seen your lease I can only make some general comments.

Usually, ROW in leases apply to lines associated with wells on  the drilling unit that includes your property.

I don't believe the ROW mentioned in your lease has anything to do with midstream companies. The agreement with the midstream is a whole separate agreement.

Also, as Tim has suggested, consulting a knowledgeable attorney is always wise. I repeat, a knowledgeable attorney. This is a specialized area of law and not all attorney's are conversant enough to help you.

Permalink Reply by cj wyalusing on September 2, 2014 at 10:31am

Dan I would also reserve the right to send your products from your well through any line they and ore any assignes build at a reasonable  price , this is the way to assure  they don't pull the old enhancement clause theres a way to get that written , just think if every one who  had land they needed to run the pipe line has the rite to send there gas oil ect  to sale what could they due ?look ahead every one  cj

Permalink Reply by Chris on August 31, 2014 at 10:59am
More often than not, most landmen are independent contractors. Markwest almost never uses its own employees for land work.
Permalink Reply by lance on August 31, 2014 at 12:23pm

I was approached last fall by one of these independent land men saying they were going to go around a neighbor who was hard to deal with and needed my 1000ft of ROW for a 20" trunk line and 4 other gathering lines in the same ditch. He sounded urgent and that construction would start the following Feb. "probably". I contacted a knowledgeable lawyer and had a meeting with her in my home. I was told by other sources that MW was paying up to $40 a foot for the first line and 30 for other lines.... He him hawed around for a couple months and I finally had a deal for 30 and 20 with temp. work spaces and access rds. My lawyer did not seem real excited about my deal as I had to do most of the negotiating my self as she lived and operated out of state but traveled here often. I talked to the land man about a 10% down payment on the first line and he seem agitated about this but I insisted and he finally agreed  but I would forfeit my 3 year release option for the 10% down which was ok if they were gonna put the line in on me. When the final agreement came in my inbox and I read it and forwarded it to my lawyer for review the 10% down was not in there. I contacted him and he said I agreed to the release after 3 years which I did not. He was trying to be sneaky with me. So I declined to sign and told him why.... He insisted I wanted the release instead of the down payment.... I haven't heard from him since. Recently I learned that M.W. was not gonna build this line now and that Blue Racer Mid Stream was taking it. Then I talked to a big shot for "Eclipse" about it and he said most likely M.W. was trying to secure ROW options in my area for potential lines for cheap as they can then flip them to other companies for a profit. So, ask the question, Is this guy trying to secure your ROW option to use in the immediate future or is he out to secure your land for three years to use as they need it or flip it over to another company for a profit...... I would not give away a 3 year option to do anything on my land with out them having some 'Skin' in the game. Mention the 10% down and see how he reacts. If they are serious about building the line there should be no problem about the measly 10%  which is really nothing to these guys if they are serious. If they are speculating and trying to get these options for nothing then he will most likely say the don't do down payments. They will if they are serious.... Gotta watch these guys. They are good at what they do... He kept saying how well he "liked" me and wanted to get me the best possible deal from MW. I think he was full of Sh--! Be careful with this or they will have your property tied up for 3 years and with no guarantee of anything happening. Ask for a 10% down and see what they say....... If they build a line the release won't matter.....

Permalink Reply by Garry L Miller on September 2, 2014 at 9:48am

WHEELAGE  NO MATTER WHAT THATS WHAT YOU WANT % OF EACH LINE GOING THROUGH YOUR LAND ,, IF YOU ARE CLEAN AN GREEN OR ANY OF THE OTHERS I WAS TOLD YOU LOSE THAT STATUS BUT NO MATTER WHAT YOU WANT WHEELAGE DONT DO IT IFYOU DONT GET IT CANT EXPRESS ENOUGH TO ANYONE THATS WHAT YOU WANT TELL EVERYINE THATS BEEN APROACHED THEY WILL BACK OFF BUT IF THEY GOT TO GO THROUGH YOU  THEY WILL MAKE YOU SIGN AGREEMENT NOT TO LET ANYONE KNOW YOU RECVIED WHEELAGE THEY WUOLD GET PAID AS LONG AS LINES RUN THROUGH YOU FOR EVER WHAT ABOUT YOUR FAMILY FOR EVER ?????????????????????????????? LOOK INTO IT I TUREND THEM AWAY FROM FREINDS 77 ACRES MADE HER GET LAWYER ONLY WAY TO GO LAND MAN DONT CARE ABOUT ANYONE BUT TO MAKE MONEY ........

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 2, 2014 at 2:36pm

Dan,

      Trust no one that comes to your door with a document.

Given the same situation I would call the lawyer below, in fact I emailed him, then the story teller left the area without my signature.

Pipeline Right Of Way Attorney

 Greg Brunton 614-232-2632

 For review of Pipeline Leases & Lease Contract Develpment

 GBrunton@reminger.com

Find a copy of the below document and read it. Pipeline folks will hate you for it!

Nothing foils a theft like a knowledgeable individual.

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

Permalink Reply by Zack Jameson on September 2, 2014 at 4:16pm

Have any landowners asked for payment when the midstream companies want to come onto their land to do the initial survey?

Permalink Reply by Janice L. Hancharick on September 3, 2014 at 5:27am

I have numerous copies of an excellent pamphlet by Penn State's Marcellus Center for Outreach and Research .  Along w/many other informational MCOR I've made available to the public @ our 4-County meetings, this is one I believe you'd find most useful right now.

If you e-mail me your address I'll pop one in the mail tomorrow.  Sat. I'm leaving town for an extended period of time.

My address is jlhanch@nc.rr.com

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