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Deal pipelines in NDAs

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Deal pipelines in NDAs How-To Guide

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tips for negotiating pipeline rights of way a pipeline right of way is a strip of land over and around natural gas pipelines where some of the property owners legal rights have been granted to a pipeline operator a right of-way agreement between the pipeline company and the property owner is also called an easement and is usually filed in the County register and recorder's office with property Deeds rights of weigh and easements provide a permanent limited interest in the land and enables the pipeline company to operate test inspect alter repair maintain replace and protect one or more pipelines within the designated easement the agreement may vary the rights and widths of the pipeline right of way but generally the pipeline company's rights of we extend 25 ft from each side of a pipeline unless special conditions exist these easements can be both permanent and temporary with temporary easements granting the pipeline company additional space during construction the permanent easement is nearly always maintained as an open vegetated Corridor that is periodically mowed by the pipeline operator for the ease of inspecting and ins servicing the pipeline easement agreement ments of formal legal agreements between the property owner or granter and the pipeline operator or grantee providing the operator long-term use of the right of way a change in ownership of the property does not alter the easement agreement especially if the easement agreement or a memorandum of the easement agreement is filed on record many aspects of a pipeline easement are negotiable typically a pipeline representative will present the land donor with a pre-printed agreement this document can serve as a starting point for a two-way negotiation or it can be fully accepted or rejected by the land owner most of the easements are negotiated by an independent contractor generally known in the industry as a landman regardless of a person's gender changes can be made to the easement agreement by creating an addendum that is approved by both parties refrain from making decisions under pressure and limit the agreement as much as possible the landman will likely not be involved with day-to-day construction and operation of the pipeline on the property so it's important to have all the final negotiated points of the agreement in writing here are examples of various conditions that may be addressed in a pipeline agreement addendum the general suggestion is for the landowner to use addenda to limit the easement agreement as much as possible to the currently proposed Pipeline and not allow the placement of additional pipeline or other Utilities in the right of way without getting written permission and perhaps additional compensation from the landowner other conditions such as indemnifying the landowner from liability that may result from incidents during construction or operation of the pipeline pre- and post construction water testing RightWay location approval and other considerations may be important the extension publication negotiating pipeline rights of way in Pennsylvania contains a sampling of additional considerations that may be included in a pipeline agreement or addressed with an addendum payments to land owners for granting right of way easements can be quite variable between pipeline operators types of pipelines and from location to location most payments for Gathering lines involve a set dollar amount per linear foot or per Rod which is 16 and 1/2 ft in Pennsylvania easement agreements for Gathering lines have range from less than $5 to more than $25 per linear foot payments to landowners for Interstate transmission pipelines are generally based on a value per Disturbed acre and can be highly variable based on the prevaling property values in the area easement payments may include restitution for damaging to Timber crops Etc or damages may be paid over and above the quoted value per foot or per acre it's important for the landowner to know exactly what is being offered and whether this offer includes damages some pipeline operators will also offer a signing bonus a fixed dollar amount for signing an easement agreement in addition to the payment per linear Fort be sure to get the amount in terms of payments in writing before signing an easement agreement because easement Agreements are legally binding contracts landowners are encouraged to have the contract reviewed by an attorney who is knowledgeable in Pennsylvania Oil and Gas Law and experienced in reviewing right of-way agreements before entering into any contract experienced oil and gas lawyers can also be immensely helpful in the negotiation of the easement agreement if the landowner needs help Penn State extension provides educational resources for land owners and other stakeholders about Shale energy development and the natural gas Leasing and exploration process County Extension offices May host an educational Workshop discuss leasing arrangements or refer you to regulatory or legal Specialists although extension Educators cannot provide legal advice they can provide additional insights about leasing and RightWay considerations for for more information about shell energy and natural gas pipelines visit the Penn State Extension natural gas website e

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