Natural Gas Valve Agreements
Virtually all Pipeline Agreements presented to landowners authorize the installation of unsightly above ground Gas Valves and other visible surface structures. Landowners must understand that when they sign a standard Pipeline Agreement they are authorizing much more than the installation of one or more natural gas pipelines.
Gas Valves are above ground facilities or appurtenances that appear periodically in the permanent easement area along the overall pipeline right-of-way route. Above ground gas valves provide the pipeline company the ability to turn on or off the natural gas flow along the pipeline.
The pipeline company will on occasion shut off the gas valve to stop the flow of natural gas to a specific area of the pipeline. Typically the pipeline company will shut off the flow of gas to allow for maintenance in a particular section of the line. Natural gas valves are necessary facilities for the transportation of natural gas.
However, an experienced lawyer will eliminate the pipeline company’s authority to install unsightly above ground Gas Valves on the landowner’s property. In the alternative, if a landowner is agreeable to the placement of a surface Gas Valve, the financial compensation and placement of the Gas Valve must be negotiated.
Remember, a Gas Valve or any above ground facility may result in an annual tax increase for the landowner. Landowners must negotiate to avoid paying any increase in future and back taxes. Landowners must also protect themselves from future liability. In addition to these issues, there are many other points that must be negotiated when considering entering into a Pipeline Agreement or other agreement that will authorize the installation of a Gas Valve on the property.
Attorney Doug Clark is Pennsylvania’s Landowner Lawyer and has negotiated hundreds of Pipeline Right-of-Way Agreements to preclude the installation of natural Gas Valves. In the alternative, Doug will negotiate to only permit Gas Valves upon agreement with the landowner which requires the company to pay any tax liabilities and require additional compensation substantial liability and property protections.
If you are approached by a pipeline company for a Pipeline Agreement or a Surface Use Agreement authorizing a Gas Valve or other surface structure, contact us today! Do not be surprised by the placement of any above ground structure and a new yearly tax burden.