Take a close look before transferring well ownership
Conferring with a knowledgeable attorney is beneficial and important to ensure you understand your rights and obligations that may result from this type of transaction.
Read MoreA couple years ago, representatives from a pipeline company drove up as Trevor Kirkpatrick was hanging Christmas lights on his barn, a Farm Bureau toboggan on his head.
Once they got out of their truck and spotted the Farm Bureau logo he was sporting that winter’s day, “their shoulders dropped,” Kirkpatrick said.
Kirkpatrick is a landowner in Carroll County and an organization director for Carroll, Harrison, Jefferson and Tuscarawas counties with Ohio Farm Bureau. His visitors that day were hoping to get him to sign paperwork that would allow them to run a transmission line under his property from one oil well to another.
They offered an attractive price per foot and had a lease agreement in hand, ready for Kirkpatrick to agree and sign right then and there. As a Farm Bureau member, and an employee, he knew better than to jump at the chance.
“I know to never sign anything on the hood of a pickup truck,” he said. The goal of the pipeline company was to offer the lowest price possible to those who were attracted to the bottom line and take advantage of that as soon as possible.
So, Kirkpatrick took a step back.
He took a copy of the two-page easement agreement, which was “riddled with mistakes and spelling errors.” He and his wife, Emily, talked over the proposal, and contacted Dale Arnold, director of energy, utility and local government policy for Ohio Farm Bureau, for further assistance.
“We help Farm Bureau members statewide,” Arnold said. “We listen carefully, and invite many to schedule a virtual kitchen table meeting so the family can discuss potential ramifications and/or benefits for the farm in further detail.”
If a larger number of inquiries come from the area, the county Farm Bureau schedules a special energy briefing for all members, Arnold said. 
The next step was contacting an attorney. Farm Bureau does have a list of attorneys who specialize in these types of cases that is available to all Farm Bureau members. Hiring a lawyer is an expense that Kirkpatrick said can give members’ pause, but is worth it in the long run.
After meeting with representatives, and learning that several of his neighbors had signed the initial offer without further consideration, the Kirkpatricks knew they had to engage legal counsel.
“The information from Farm Bureau was great. We hired our attorney, went right into discussing our specific concerns and contract requirements and saved both time and legal fees.” he said. That legal scrutiny also eventually led to thousands of dollars more in their agreement with the pipeline company.
“It eased my mind going through the process,” he said, noting that he was reminded that the pipeline company is “asking you to put a project on your property. Don’t feel pressured.”
The two parties ultimately agreed on a contract that was 17-pages long, accurate and detailed with items Kirkpatrick said he would have never thought to even ask about – including being paid local timber prices on trees that were to be cut down on his property and a fair value for the soil the pipeline easement was going to be built under.
“There is value to your land, your fields, your timber and your soil,” Kirkpatrick said. “We absolutely had to have that knowledge (before making a decision). That speaks to the value of Farm Bureau membership. Use Farm Bureau resources to educate yourself. Don’t sign prematurely. Don’t get into a hurry. The first number is excellent, but it could be better.”
Basic questions that need to be addressed during initial conversations between the landowner and service provider’s representative should include:
Special easement considerations also need to be addressed as well as monitoring of the project.
More information about easements can be found at ofb.ag/energyresourceguide.
Conferring with a knowledgeable attorney is beneficial and important to ensure you understand your rights and obligations that may result from this type of transaction.
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