Right of Way, going rates for gas lines
Does anyone know the going rate for right-of ways for gas lines?
EQT wants a 50' right of way and is offering a price per foot determinted by how big of gas line. A 2" line pays $2 ft , 6" pays $6 a foot..etc... This does not seem fair since they are taking a 50' wide swath of land. Why do I care if it is a 2" or 24" line, I still lose the same amount of land?
Thanks
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Replies to This Discussion
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Permalink Reply by David Stewart on
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Do we call that the "me too" clause? That, like the pugh clause in a lease, would probably go over as well as a turd in the punch bowl as far the gas companies are concerned!
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Permalink Reply by David Stewart on
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We signed one in fall also, East offered 15 afoot, we got 20 but heard a few others managed 30. This was a 20 inch transmission line but you are right you are getting paid for the disruption of the land so it really doesnt matter the size of the line. Beware though that some leases allow them to install pipelines and they may not have to offer larger amounts but I would make them prove it in court before I blindly agreed to a lower amount.
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Permalink Reply by PALogger on
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I think the price difference based on line size is bogus, as you said its the same amount of disturbance regardless. Pipelines are unfortunately a necessary evil, but be really careful before you sign. Having a pipeline on your property can severely hamper what you will be able to do with it in the future. I have a friend just outside of Williamsport who is negotiating a pipeline right now. Hes been back and forth with the gas co so many times its disgusting. He was told the line would be big, would chop his property almost in half, and would make future development a nightmare. His proximity to the city has him seriously concerned that should his children ever want to sell it, build on it, etc the value may be lost after the line is in. Its hard to turn down dollars today, but think about your area and what potential your property may have in the future.
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Permalink Reply by Rambo on
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We signed one with East and their standard lease asked for a 50' right-of-way. We told them 25' was all we would give them and that was our final answer. Take it our leave it. They took it and changed the wording in the agreement. This footage is negotiable. Good Luck.
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Permalink Reply by Sherre Boyanowski on
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We are working with gas and 2 water piplines. They want to bury the water line in the same right of way as the gas line. They are asking for an aditional 25 feet, but only paying $5 a foot. I must say that they have been very good about working with us as to where they are going to put the lines. Still working on the contents of the document. Also seperate agreement for the 2 valves they need to put on our property. Don't be afraid to ask for addendms and don't think that any little thing is not worth asking for. Make them spell out everything. Don't assume anything. Have someone look over all documents before you sign, they might think of something to include that you didn't.
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Permalink Reply by JPA on
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We have a pipeline on our property that came through in the 80's. If I can offer my advice, dont sign any pipeline agreement. Sure you get the upfront money but when you spend it and it is gone, you have to live the rest of your life on land that is now unsellable because you cant build on it or develop it in any way. Furthermore, you have to pay taxes on that unusable land for as long as you have it. My advise - dont sign. Let them go around you. You will appreciate it down the road.
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