BEFORE YOU SIGN
Word has reached us of people receiving offers from PennEast or their affiliates for right-of-way permissions.
Before you Sign:
- Educate yourself on what it will mean to have a pipeline on your property. How will it impact your lifestyle? How will it affect your health? What are the risks and hazards? Is there an emergency plan? Who is responsible for property taxes and property insurance? What are your rights in the event of an accident? Who is liable in the event of an accident? How will this impact your and your neighbors' property values?
- Consult with an Attorney who is knowledgeable about fossil fuel contracts, including rights-of-way/easements for pipelines.
- Check with your mortgage holder for any conditions which may conflict with your mortgage. Some mortgage agreements may not allow this type of industrial development.
- Check with your Property Insurance company for any additional policy coverage you may need. Most common policies do not cover pollution or contamination from industrial operations and you may need a separate policy for the pipeline if available.
- Check with a Licensed Realtor and find out how having a pipeline on your property may impact the value.
You may have been told if you do not sign that PennEast will take the property by Eminent Domain/Condemnation.
From a negotiating standpoint, you may not get the best price unless you are demonstrably indifferent to a condemnation proceeding. You should make that abundantly clear to the landman or fossil fuel corporation in order to extract the best written offer they can, before opting for a condemnation proceeding. That is the best, the most straightforward advice any real estate professional could give a landowner because, at a minimum, you will have one of three good outcomes:
- The landowner will get more money for their land via a condemnation proceeding- on average, 80% more based on a recent university study, Cost of Condemnation. (Click Here to Read)
- The pipeline may go somewhere else – if enough landowners resist, forcing serial condemnations.
- The pipeline project may be abandoned – if enough property owners refuse to sell.