The plot thickens, as they say.  Actually, people are just expressing their opinions about the MVP, and getting those opinions in the news.  It’s still interesting stuff.

The thing that interests me is that the “expert” was quoted in the article as saying that the traditional price for pipelines was a dollar per foot.  I think he was probably misquoted, as the traditional price was a dollar per inch per foot.  I think the reporter just missed the “per inch” part.  For a 10-inch pipeline, you would get ten dollars per foot.  So if the pipeline crossed 100 feet of your property, you’d get $1000.

The traditional price is definitely low these days.  I’d say that two dollars per inch per foot is the starting point, and I’ve negotiated upwards of three dollars per inch per foot in the past.

One other very important point that the article makes is that these pipelines are going to be here for decades.  A one-time payment is not appropriate for such lengthy agreements.  There needs to be an annual or monthly payment of some sort, even if it’s small.  A periodic payment will assure the landowner that the pipeline is still in use.  If the payment stops coming, the landowner will be able to assume that the pipeline is no longer in use.

One idea that the article doesn’t point out is the possibility of getting wheelage paid.  Wheelage is basically a royalty on the gas that passes across your property.  Wheelage would work to accomplish the same goals that periodic payments would.

There are a lot of other things that a landowner could negotiate for in a pipeline right of way setting.  Get the advice of an attorney who is competent in this area before you sign a pipeline right of way agreement.  If you don’t already have one, give my office a call at 304-473-1403.

I’d like to point out that the pipelines in the pictures above are much smaller than the MVP will be.  Those are probably 36-inch pipes, and the MVP will be 42 inches.