Full Text
Natural Gas Pipeline Considerations This document is not a substitute for legal advice. It serves as a listing of negotiating points for discussion with your legal advisor. It is not all inclusive. Pipeline easement agreements are provided in the presenter’s favor. Remember that this process is a negotiation and must include terms and language to protect your interests. Always retain contact information for the lease agent(s). If a pipeline is being proposed to cross your property, do not give verbal approval. Only sign permission with conditions attached. Conditions you may want to include are provided below. Some conditions listed below may not apply to your property. Note: The word “grantor” is synonymous with the surface property owner. 1. Define width of temporary and permanent easements. 2. Give extensive consideration to pipeline location. A pipeline easement is a non-buildable area; and could affect the use of land outside the right-of-way. Options to consider include placing the easement: to follow roads or other easements, along the property line, or in the interior of your property to use as a food plot. Negotiate the location to suit both your present uses and future development, remembering that land development ordinances stipulate setback distances for buildings along a pipeline easement. 3. Pipeline company should be responsible for ramps or crossings that allow heavy trucks or equipment to cross without damage to pipeline. 4. Consider limitations on agricultural and /or timbering activities within the easement right- of-way. 5. Include “no usage of metal wires”, especially in agricultural areas due to machinery damage. Use wooden stakes. 6. Limit easement for one pipe, stipulating that any future pipe installation in the easement would require a new easement and/or additional payment. 7. Use only grantor-designated access points. 8. Remove and stock pile topsoil for reuse at surface. 9. Specify how easement should be restored. This includes: the piling, mulching, and/or removal of stumps and brush, the type of vegetation you wish to be planted, and soil amendments, such as lime and fertilizer, based on soil sample test results. 10. Request an as-constructed survey of the easement. 11. Stipulate that no fences be cut without prior approval. 12. All fencing and gates removed for the installation of the pipeline shall be replaced or installed according to grantor’s specification. Page 1 of 2 Guideline Document #4 This document was prepared by the Centre County (PA) Natural Gas Task Force in conjunction with the Centre County Solicitor and the Centre County Planning and Community Development Office. It received the acknowledgement of the Centre County Board of Commissioners on September 27, 2011. ---PAGE BREAK--- 13. Property to be left in same or better condition. Specify process for rectifying damages that result from these problems: agricultural production, water quality outside the pipeline easement, and the inability to expand farm operation due to impaired ability to meet required nutrient management plans. 14. Any damages to property by independent contractors and subcontractors shall be repaired by pipeline company, its contractors and/or subcontractors. 15. Any oil spills or other hazard damage are to be reported to surface owner and repaired according to existing state & federal environmental laws. 16. Rutting to roads or land shall be repaired back to normal conditions, excessive rutting (greater than 3" tracks) must be repaired to grantor’s satisfaction. 17. If gates are to be installed in the easement, clarify who will have the keys to the gates. 18. Do you as the grantor want to limit or prohibit surface structures? 19. Resolve how disputes with the pipeline operator will be resolved. 20. Crop damages shall be paid using highest yield paid in last 3 years on property and if not available, then Farm Service Agency (FSA) county average for the last 3 years will be the basis for determining payment for crop damage, payable to Grantor. 21. Easement compensation can take many forms depending on who owns the gas rights and the pipeline company. Types of compensation: A. Flat fee per foot of line. B. Double stumpage for timber and a flat fee per foot of line with or without an annual fee. C. Flat fee for timber or crop damage and a separate fee for the easement. D. Flat fee per foot of line and the placing of harvested trees for landowner use or sale. E. Any variations of the above of which you both agree. NOTE: You may want to consult your tax advisor in addition to your attorney as to which type of compensation is best for your situation. 22. Ensure that the pipeline design and construction meets the applicable regulations and safety standards such as: the US Department of Transportation Pipeline and Hazardous Materials Safety Administration, and the PA Public Utility Commission. 23. An Erosion and Sediment Pollution Control Plan and a Post Construction Stormwater Management Plan should exist prior to commencing earth disturbance as applicable. 24. All buildings and other infrastructure associated with pipeline shall comply with local land development regulations and/or be negotiated with the land owner. 25. Consideration should be given to the timing and duration of the construction phase. Page 2 of 2 This document was prepared by the Centre County (PA) Natural Gas Task Force in conjunction with the Centre County Solicitor and the Centre County Planning and Community Development Office. It received the acknowledgement of the Centre County Board of Commissioners on September 27, 2011.