Pipe Yard, Storage and Staging Area Agreements

Pipe Yard, Storage and Staging Area Agreements are contracts between the Pipeline Company and landowner that typically authorize the use of a significant acreage for storing pipe and other equipment used during the pipeline installation process.

Pipeline companies will seek leasing or rental agreements with landowners situated along the planned pipeline route to allow the company to store needed materials and to maintain a staging area for their operations. Storage and Staging Area Agreements typically impact substantial acreage and create potential landowner liability.

Storage and Staging Area Agreements raise many serious concerns for the landowner and should only be considered in limited circumstances. Landowners presented with a Pipe Yard, Storage or Staging Area Agreement offer should first consult with an experienced oil and gas attorney to determine whether further consideration is warranted.

Pipe Yard, Storage and Staging Area Agreements should be carefully negotiated by experienced legal counsel to address many issues, including but not limited to:

  1. Maximize initial rental or lease compensation and any option payments;
  2. Establish annual rental or lease fees, if agreement exceeds 1 year;
  3. Maximize property damage compensation;
  4. Limit the scope and impact of operations;
  5. Expressly identify the authorized areas of disturbance and operations on the property;
  6. Eliminate potential landowner liability;
  7. Eliminate landowner past, current and future tax obligations;
  8. Require a defined termination date or a set trigger for future termination; and
  9. Require detailed reclamation upon termination of the Agreement.

Pipe Yard, Storage and Staging Area Agreements are another area where an accurate negotiation leverage assessment can result in significant increased compensation and a strong Agreement for the landowner.

Attorney Doug Clark is Pennsylvania’s Landowner Lawyer and has experience in assessing leverage and negotiating landowner friendly Pipe Yard, Storage and Staging Area Agreements. Do not enter into any natural gas or pipeline related agreement without contacting Pennsylvania’s Landowner Law Firm. Contact us today!