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Oil/Gas/Right of Way Contract in WV


QUESTION: I am in West Union, WV 26456 (Doddridge County). I signed a Pipeline Right of Way agreement almost 2 years ago with Consol Energy, as well as a site/tank and road easement agreement.
They called me a week ago and told me they lost the original and needed me to sign a new one. When he showed up the only one he claims to have lost is the pipeline right away.
The Original Right-of-way agreement's payment portion of that contract reads as follows: Grantee agrees to pay Grantor $1.00 per total diameter inch of pipeline, per linear foot of pipeline laid on premises for said ROW at time of or before laying the pipeline. In the event no pipeline is laid on the property or such payment is not made within one year from the effective date of this agreement, then the ROW hereby granted shall terminate. In the event that Grantee utilizes this ROW and makes the requisite payment to Grantor, Grantor agrees that this amount shall be in full and complete satisfaction for any and all claims Grantor may have for damages to the property, except for growing crops and timber.
The new agreement they brought me to sign claiming they lost the original has the word "or" added to the sentence: In the event that Grantee utilizes this ROW and/or makes requisite payment to Grantor, Grantor agrees that this amount shall be in full and complete satisfaction for all and any claims Grantor may have for damages to the property, except for growing crops and timber.
Now I believe because they did not put the pipeline in year and it has been over 1 year that they are trying to get me to sign a new contract without paying me again, why else would they have added or to that second sentence, and I do not believe that story about losing the original, because the other two agreements we signed only say that if the payment is not made then the agreement is terminated and they did not lose those originals, they only lost the original with the woring about 1 year. I told the guy as much and he says I am wrong and this is not a new contract and no new payment is due?

ANSWER: The original agreement appears to expire after one year if no payment is made within one year of its effective date. If they made a payment, then the agreement is still in effect. If not, then it expired and they'd have to negotiate a new one with you if they still wanted a ROW. You mentioned paying you "again" so it appears they did pay you for the first agreement, thus it's still in effect according to what you quoted me.

I would suggest having an attorney look over any future ROW agreement before you sign. Could be that $1.00/foot is not the best you can do. I'd also look at limiting it to a certain number of years. And/or vs. or doesn't matter in this agreement. It says the same thing either way in this case, since "utilize" is open to interpretation and they could likely argue that paying you did "utilize" the ROW.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub

---------- FOLLOW-UP ----------

QUESTION: When we originally signed that pipeline ROW agreement, we also signed an agreement for a Tank & Facility Site. It reads:
This Agreement made this the 1st day of October 2011, ___ and ___, husband and wife, hereinafter referred to as Grantor, and CNX GAS COMPANY LLC< a Virginia limited liability company, whose address is 1000 CNX Energy Drive, Canonsburg, Pennsylvania 15317, hereinafter referred to as CNX.
Witnesseth: That for and in consideration of $10.00 paid to Grantor, the receipt of which is acknowledged, Grantor does hereby grant unto CNX, its successors and assigns, the right to locate, construct, maintain, use, replace, and remove a separator, production fluid storage tanks and facilities associated thereto upon those certain lands situate in West Union, District, Doddridge County West Virginia, bounded substantially by lands now or formerly owned as follows:
North by: E. Leggett, East by: L. Dotson, South by: County Rt 21, West by: C. Axton Said lands being identified for tax purposes as, Tax Map 15, Parcel 9.1 containing 50 acres. Notwithstanding such tax map designation this Tank Site shall be effective as to the tract actually owned by Grantor whether or not the tax map correctly sets out the location of the tracts.
It is further agreed and understood by the parties hereto that the site granted shall not exceed 150 X 150 with the right to fence same. Site will be parallel TL 418 at the site of CNX's Meter Site on TL 418.
Together with the rights of way upon and over said lands to lay, maintain, operate, replace, and remove a pipeline to transport water, gasoline, oil, and other fluids from CNXs pipelines to said tanks and containers and a pipeline to transport such fluids from said tanks and containers to the public road; together also with the right of way upon and over said lands for ingress and egress to and from said tanks, containers, and pipeline and to transport such fluids by truck or other vehicle from said tanks and containers to the public road.
In the event that no payment is made within one year from this date, then agreement hereby granted shall cease. The Grantors hereby declare that the total consideration paid for the right-of-way herein granted was $5,000.00 a year to be paid on Instrument Date ( October 1st).
Witness the following signatures and seals, we all signed.
They paid us for this Oct. 1, 2011, and paid us our 1st yearly payment last year Oct, 2012. When the guy came to get us to sign the new right of way contract(that was in the first contract that I contacted you about) I had asked him about the tank, because they now want us to sign a meter site agreement 20 X 20 for $1500, he said that they were not going to put the tank on us any more- does that negate this contract, does that mean we will no longer get the $5000 a year, the contact doesn't say anything about ceasing if they do not put the tank there?

You granted them the right, but not the obligation, to construct (and remove) a tank on your land. Thus, they only pay you if there's a tank there. If no tank, or they remove one that's there, then the agreement expires and you don't get paid anymore. Again, see an attorney to be sure but that's that way I read it.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub  


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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