Landowner Relations Buckeye STEPS Safety Network Meeting Friday August 7, 2015 Bryan J. Hanks, CPL CEO/President

1821 – 1 st Natural Gas Well in U.S. Fredonia, NY 1859 – 1 st Oil Well in U.S. Titusville, PA Landowner Relations

1816 – Natural Gas Streetlights Baltimore, MD 1862 – Earliest oil pipeline was a nine mile wooden pipeline

Landowner Relations Egyptians used copper pipe to transport water in 3000BC

FACTS Every landowner who signs an agreement impacted with operations. Many landowners who do not sign an agreement are impacted: Access Drainage issues Noise Possible effects on commercial development of land THEY RECEIVE NO MONEY FOR PIPELINE Many people alone line have signed Oil & Gas leases – some are happy with those agreements and some are not – see pipeline as way to “catch up” on “lost revenue/compensation” from Oil & Gas companies. The internet is not our “Friend”.

Landowner Relations trust communication * The relationship we establish and build with our landowners is foremost built on trust and communication - our most precious assets. open relationship flexible * We strive to establish and develop an open relationship with each landowner. We understand that no two landowners are alike, so we try to be flexible to accommodate each landowner’s needs and wants.

Landowner Relations honesty integrity It is our goal to treat each of our landowners with honesty and integrity and to reach maximum production on each of their lands/fields by using the latest equipment, technologies, and management method.

What is a Landman? Landmen/Right of Way Agents Landmen/Right of Way Agents are the public facing (business) side of the pipeline acquisition team. They interact and negotiate directly with landowners to acquire pipeline rights of way on behalf of the pipeline company.

Company Landman Negotiate deals and trades with other companies and individuals, draft contracts (and administer their compliance), acquire rights of way, clear title, prepare land for laying of pipeline and ensure compliance with governmental regulation.

Serve clients on a contract basis and are generally the industry’s contact with the public as they research courthouse records to determine ownership and prepare necessary reports and locate mineral and surface land owners. They negotiate rights of way and various other agreements, obtain necessary curative documents, and conduct surface inspections before construction begins. Field Landman

»Management/Supervisory »Equipment Operators »Trades/Skilled Labor »Labor/Unskilled/Entry Level Engineering Pipeline “TEAM” Camp Services Camp Services »Accommodations »Food Services »Health & Safety »Logistics »Environmental Specialists »Technologists ProjectManagement »Administration »Procurement »Purchasing Office Support Office Support Support Services Construction

Pipeline Construction Steps 7. Trenching 8.Final Coating & Inspection 9.Lowering Pipe into Trench 10.Pad, Backfill, Rough Grade 11.Testing Final Tie-In 12.Final Clean-up & Full restoration 1.Survey & Staking 2.Front-End Clearing 3.Right-of-Way Grading 4.Stinging Pipe 5.Bending Pipe 6.Line-Up - Initial Weld

Pipeline Maintenance Activities Reconditioning Smart Pigging DOT Required Tasks * Ground Surveillance * One Call Response 811 * Public Education » ROW Landowners » Support Agencies Preventive Maintenance * Monthly CPS & rectifier reading * Semi-annual gas leak surveys * Annual aerial surveillance for leaks * Annual valve maintenance & operation * Annual PSV testing – compressor, pump, meter * Emergency response training with LDC and agency participation

A Good Land Relationship Keep communication open Landowner Relations

A Good Land Relationship Outline goals and objectives clearly Landowner Relations

A Good Land Relationship Be specific Landowner Relations

A Good Land Relationship Outline attitudes about risk and change Landowner Relations

A Good Land Relationship Give options for right of way agreement Landowner Relations

A Good Land Relationship Document and share Landowner Relations

Solve the Problem Landowner Relations

Avoid the Problem Landowner Relations

Play As a Team Landowner Relations

Four Types of Landowners Landowners

Retreat Owner Own their land primarily for its beauty and recreational value. Derive great pleasure and joy from their land and they have a strong emotional bond with it. Assign lower importance to financial reasons for owning. Retreat Owner

Working the Land Owner Pragmatic individuals who have a strong and multi- faceted interest in their land. See their land as a valuable asset and want to get the best from their land. Value experience and conventional wisdom over professional expertise or technical knowledge. Trust local sources of information more and prefer to get information from sources that they see as ideologically and financially unbiased Working the Land

Supplemental Income Owner  Primarily own their land for investment and income purposes.  Have long-standing ties to the land, but these are based on its income and investment value. They are very likely to buy land, but also more likely to sell it when the right opportunity comes along.  Approach these landowners with win/win pitches that combine some financial benefits with stewardship objectives Supplemental Owner

Neither financially motivated nor particularly interested in the recreational or aesthetic benefits of owning their land. Concerns for their land-- keeping the land intact for heirs, high property taxes, insects, fire and trespassing or poaching- Uninvolved Owner Uninvolved