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northeastern Ohio | They are vultures, but they can work. I hired one of these outfits to negotiate a pipeline for me. There were several to choose from but in the end I think they were all connected to the same attorney. It's a little scary to sign up with an outfit that just formed a few months ago (they seem to like to start with a new name every time a pipeline comes through), but it worked out alright for me.
Pipeline company initial offer was $11 per foot. I negotiated with the pipeline on my own for MONTHS... almost a year actually. The best offer I could get was $100 per foot. Finally signed up with a "consultant" and ended up with $160 a foot, but had to give the "consulting company" about 10%.
The consulting company will want paid a percentage. This can range from 4% to 30%. It is negotiable!!!! and needs to be in writing... and you might need an attorney to check the consultant agreement out before signing to make sure that it is worded correctly. The 4% might sound good, but might not include attorney fees,,,,,
Some of these vultures/consultants will want you to settle quick. They might actually be working for the pipeline company!!!!!
It's best to watch the FERC schedule and wait as long as you can (it takes at least a year to get FERC approval) before signing up with these guys. You want to be the last group that signs in order to get top dollar. The early guys get screwed almost every time, unless the pipeline gets cancelled (I've seen it happen occasionally).
For tax purposes I am told that you want most of the payment labeled as "damages" with a smaller portion designated for the actual easement.
It's a huge pain to deal with even with a "consultant". You need to protect your assets (land, crops, cattle, ect) and only you know the true value. But it's impossible to negotiate on your own with these large companies. At the very least you will need to hire a lawyer.
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Ace Land Consulting
