Compressor Stations Involve Substantial Above Ground Surface Facilities Including Separators and Large Compressor Units used to Pressurize Natural Gas to Facilitate the Transportation of Gas Through Pipelines. Compressor Station Agreements Involve Major Industrial Operations and Typically Require a Century or More of Landowner Commitment. Any Landowner Presented with a Compressor Station Agreement Should Immediately Contact an Experience Oil and Gas Attorney.
As shale gas development expands and natural gas pipeline infrastructure grows, gas and pipeline companies require additional Compressor Stations to facilitate the transportation of natural gas. Compressor Stations are necessary to periodically increase the pressure of natural gas to facilitate gas flow through pipelines.
Compressor Station Agreements are major industrial contracts and should not be entered into lightly. There are many complicated and complex aspects to Compressor Station Agreements. Compensation structure and term length are critical, but there are many other important aspects to these agreements. Compressor Station Agreements may last for well over 100 years and Landowners cannot rely on a company Landman to educate them and protect their interests. Remember, the company Landman or representative is seeking to obtain the best possible agreement for the company, not the Landowner.
During negotiations it is common to see substantial variations between the initial Compressor Station Agreement offer and the final documents signed by the Landowner. Because Compressor Station Agreements involve substantial industrial activity and are long term contracts, there is often substantial flexibility to negotiate compensation and many other beneficial terms for the Landowner.
No Landowner should ever sign a boilerplate Compressor Station Agreement. Landowners must negotiate Compressor Station Agreement offers to maximum substantial compensation, minimize term length, and to fully protect themselves from liability, future taxes and other serious concerns.
If you are presented with a Compressor Station Agreement offer you must obtain an oil and gas attorney with experience negotiating Compressor Station Agreements. Attorney Doug Clark is Pennsylvania’s Landowner Lawyer and he can help you. Contact us today!