Wondering whether pipeline company's request for addendum to original ROW agreement to construct a 2" line from existing well to Tenaska gathering pipeline (approx 75') to "improve" well production is standard protocol. What, if any, are pitfalls to an addendum to avoid loss of land use, timber harvesting or condemnation of same. Production from original drill 2.5 yrs has been minimal to non-existent to date. Is additional line to "increase production" standard operating procedure? Appreciate any input.
depends on what your original ROW agreement states. if it's for only one line... you should be compensated for a second line. will they need more land...ROW for the line... damages... timber... what's flowing... what does it tie into? remember... pipelines are there forever. i think if you work with them... they'll be reasonable... maybe. also, there's some good information on this thread. check it out too.
It would be very wise to either hire a good oil and gas lawyer or mineral manager to assist you. The ROW Agreement is very important and you need one to protect you. As Bacon stated, they usually pay for themselves.
I am currently working with a mineral manager to negotiate a pipeline ROW on my land in another county. (My mineral manager earned his fee in negotiating the land entry permit for survey purposes.) The first letter that I received from the pipeline company emphasized their power of "eminent domain." I think these companies try to use this threat as a scare tactic.
The pipeline company recently sent me an offer for $297 a rod. Since there are hardwood trees to be compensated for, etc., this will have to be negotiated and the final price should be substantially higher. My mineral manage will definitely earn his money here.