CHESTER COUNTY
PIPELINE
INFORMATION CENTER
Chester County Pipeline Information Center
Landowners Resource Guide
for Pipeline Easements
and Rights-of-Way
This resource guide was prepared by the Chester County Planning Commission. Funding was provided, in
part, through a grant from the Pipeline Hazardous Materials Safety Administration, under the U.S. Department
of Transportation, and the Chester County Board of Commissioners. This document has been prepared in
conjunction with the principles of the County’s policy plan, Landscapes2, as a means of achieving greater
consistency between local, regional, and county planning programs.
For more information see: www.landscapes2.org.
Chester County Board of Commissioners
T
erence Farrell
Kathi Cozzone
Michelle Kichline
December 2015
1
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
The following information is intended to serve as a resource for
landowners and residents, including those who may have an existing
or proposed pipeline right-of-way (R.O.W) on or near their property.
Links and resources about easements are included for those
interested in more detailed information on the subject.
Please note: Landowners should not rely solely on this information
to direct their land or nancial decisions. This information is
advisory and not intended to be, and should not be considered to
be, a substitute for legal advice and planning. Any individual who
undertakes suggestions presented hereafter, should do so only after
consulting with an experienced professional advisor.
2
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Do some background research on
the project.
First, go to the pipeline company’s web page. Find out what kind
of pipeline is proposed, when it is scheduled to be installed, and who
at the pipeline company you should contact. Become familiar with
the project before you contact the pipeline company as this will help
you to ask the right questions.
1
Second, contact the pipeline company and speak to someone.
Be sure to nd out the anticipated construction schedule for the
project.
These links on the Chester County Pipeline Information Center can
help you locate the operators contact information:
• Interactive Pipeline Map
• Pipeline Operators
Additionally, here are three resources you may
nd helpful in
understanding landowner’s issues as they relate to pipelines, rights
of way, and easement impacts.
• Carolyn Elefant’s guidebook titled Knowing and Protecting Your
R
ights When an Interstate Gas Pipeline Comes to Your Community
(
The Law O ces of Carolyn Elefant is a rm is based in Washington
D.C. which specializes in Federal energy practice and policy.)
• Penn State Extension’s document titled “Natural Gas Pipeline Right
of
Ways: Understanding Landowner Rights and Options
• Pipeline Safety Trust’s Landowner’s Guide to Pipelines
Note: Full website and publication links are located under “Resources” at
the end of this document.
The Basics
If a pipeline company wants to place
a new easement or renegotiate an
existing easement on your property,
here are some things to consider.
1
P. Hall, C. Hogan, and L. Wills, “Understanding and Negotiating Pipeline Easements,” Ohio State
U
niversity Extension, accessed June 2015.
3
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Understand the role of the land
agent in easement negotiations.
Pipeline companies often try to secure easements before they
conduct the required environmental studies, since it is more
advantageous to study a corridor where they have already obtained
the rights-of-way. When easements are negotiated, pipeline
companies often use independent contractors known as a land
agents. Landowners who are
approached by a pipeline
company or their land agent
who is proposing to locate a
facility on the owner’s land,
should receive an o er of
nancial compensation in
exchange for an easement to
use the property. Keep in mind
that the representatives of a
pipeline company are acting
in the interest of the company,
not necessarily the landowner.
Landowners are advised
to retain the services of an
attorney who is specialized in
negotiating utility easements.
Consider these points during
easement negotiations.
When negotiating an easement, landowners should receive
information about the following issues:
What rights will the landowner maintain?
What rights will the pipeline operator have?
How will the land be restored after construction?
What landscaping will be re-vegetated and; how will it be
restored and by when?
Will the easement a ect the landowner’s ability to access or use
the land on the other side of the easement, either permanently,
or during construction?
Will there be temporary easement areas for construction
staging yards or access?
How or will the landowner be able to access their property
during construction?
How frequently will the pipeline company access the easement
area after construction?
How will the operator maintain the right-of-way after
construction? This includes removal of vegetation, use of
herbicides, landscapers, etc. and how frequently.
How many pipelines will be permitted in the right-of-way and
what type of products will be transported? Landowners can
negotiate a maximum number of lines within R.O.W.
The Chester County Bar
Association has a lawyer
referral service where
landowners can talk to a
lawyer, who is licensed
and insured, for an initial
30-minute consultation for
$25. They are located at 15
W. Gay Street, 2nd Floor,
West Chester, PA 19380 and
may be reached by phone at
610-429-1500.
View the lawyer referral
service page here.
Note that it is also advantageous to request that the pipeline
company physically mark the proposed right-of-way location in
advance to provide an accurate visual representation of the location
of the pipeline right-of-way on your property prior to nalizing an
agreement.
4
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Consider the pros and cons of
negotiating an easement versus
proceeding to eminent domain.
Each negotiation between a landowner and a pipeline company
is unique. However, landowners, generally speaking, have more
options if they negotiate with the pipeline company and often
can bene t if working as a
group of landowners rather
than individually. Where
eminent domain is a possibility,
landowners should consider it as
a last resort if a mutual agreement
with the pipeline company cannot
be reached.
Landowners have a number of options when dealing with a pipeline
company that wishes to establish a pipeline easement on their
property. One option is for the landowner to simply limit their
coordination with the pipeline company and let the process proceed
to eminent domain. However, experts in land planning and pipeline
law generally recommend coordination and negotiation with the
pipeline companies as a preferred option. Simply put, a negotiated
pipeline easement is more likely to include provisions that help
landowners minimize the long-term impacts that a pipeline will have
once it is installed.
When the operator has the right of eminent domain, Eric Camp, a
lawyer specializing on pipeline issues has written that:
“A landowner should remember during these [easement]
negotiations that the pipeline company holds the ultimate trump
card— the right to use eminent domain to condemn the land.
Pipeline Companies do not like to do this as it is expensive and
causes bad publicity… Generally, landowners should not want to
go through a condemnation proceeding because it is expensive and
only determines that amount of compensation due to the landowner
— meaning that landowner missed the opportunity to negotiate all
the special provisions listed above. To ultimately get the best terms
in the Easement Agreement, a landowner should negotiate in good
faith maintaining civility.”
3
Each negotiation
between a landowner
and a pipeline
company is unique.
Eminent Domain: The authority to acquire or take, or
authorize the taking of, private property for public use or
public purpose. Comment: While eminent domain is largely
the prerogative of the government, utilities and independent
agencies may also have the right of eminent domain. The Fifth
Amendment of the Constitution requires just compensation
for any taking.
2
2
H. Moskowitz and C. Lindbloom, The New Illustrated Book of Development Definitions, 1993, 104.
3
Eric Camp, Natural Gas Pipeline Easement and Rights-of-Way Agreements: A Landowners List of Terms
t
o Negotiate, Whitaker, Chalk, Swindle and Sawyer, LLP., accessed 2014.
5
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Understand the easement
negotiation process.
The easement negotiation between a landowner and a pipeline
company typically begins when the landowner receives a “form” or
“model” easement from a pipeline development company. According
to the Ohio State University Extension, the landowner should,
“consider this form easement as a starting point for negotiating
easement terms rather than as a nal o er from the company. It
is acceptable to respond to the company’s easement o er with
additional provisions that address your needs. The assistance of a
knowledgeable attorney throughout this easement negotiation
process can be invaluable and well worth the investment. Before the
pipeline easement negotiation process begins, take into account
three key areas of concern: impact on property; income; and
eminent domain.”
4
Key areas of concern:
Impact on your property
What e ects could there be on the property due to construction,
maintenance and long term presence of the pipeline, and are there
ways to reduce those impacts?
Anticipated income
How much compensation should the landowner receive for the
use of the land and for the impacts that will or might result from
the pipeline? An article, based on Texas tax law, about the potential
tax impacts from easement agreements or eminent domain can be
viewed here.
Eminent domain
Does the c
ompany possess the potential power of eminent domain,
and is the company willing to pursue eminent domain?”
5
In other words, you should look to the future and ask what possible
negative impacts (like cutting down established trees), might occur
if the pipeline is installed, and what kind of mitigating actions may
reduce the negative visual impact. As a result of negotiation with
the pipeline company, you can add an addendum to the easement
which ensures that the pipeline company will take special measures
when building or maintaining the pipelines and the lands above it.
4
Hall, Understanding and Negotiating Pipeline Easements.
5
Hall, Understanding and Negotiating Pipeline Easements.
6
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Penn State Extension has identi ed numerous considerations that
may be included in a pipeline agreement or addendum. Some of
these are:
• Payments for trees, crops, etc., damaged during the installation of
the pipeline.
• Reseeding of easement areas and what types of grasses and other
improvements, including the amount of time following completion
of construction for surface restoration to be completed.
• Identi cation of all stream crossings, statement of methods of
stream crossings, and requirement for restoration of stream
crossings after construction.
• Replacement or installation of fencing and gates (with materials
speci ed), including which gates will have locks and what type of
lock will be used.
• Who from the pipeline company and their contractors will have
access to gated areas?
• De nition of substances that can be transported in the pipeline ,
and the total number of lines in the R.O.W.
The Penn State Extension
publication on negotiating
pipeline rights of way can be
view
ed here.
You can also visit the Ohio State
Univ
ersity Extension’s page on
understanding and negotiating
pipeline easements, here.
The negotiation process allows the landowner to have a say in
det
ermining how much they will be compensated for the easement.
Penn State Extension notes that payments to landowners for
granting right-of-way easements vary between pipeline operators,
the type of pipeline, and the location of the easement. Most
payments involve a set dollar amount per linear foot (or per “rod,”
which is 16.5 feet). In Pennsylvania, easement agreements have
ranged from less than $5.00 to more than $25.00 per linear foot.
Landowners should also determine how any payments will impact
their taxes prior to negotiating compensation.
6
FACT SHEET
Ohio State University Extension, 2120 Fyffe Road, Columbus, OH 43210
“Shale Oil and Gas Development” Fact Sheet Series
Understanding and Negotiating Pipeline
Easements
Peggy Kirk Hall
Director , OSU Extension Agricultural & Resource Law Pr ogram
Christopher Hogan and Logan Wills
Progra m Assistants, OSU Extension Agricultural & Resour ce Law Program
Introduction
Pipelines play an important role in the development of Ohio’s shale resources. As shale development
in Ohio continues to expand, so does the need for pipelines that transport shale gas resources. Many
landowners may be approached by companies who want to construct a pipeline across their properties.
Landowners facing this situation will benefit from understanding and negotiating the pipeline easement,
also referred to as the pipeline “right-of-way.” This fact sheet explains pipeline easements and reviews
issues and terms for landowners to consider when negotiating an easement. For additional information
on pipelines, pipeline regulation and pipeline construction see our pipeline fact sheet series on OSU
Extension’s shale education library at http://shalegas.osu.edu.
What is a Pipeline Easement?
Generally, an easement is a legal interest that allows someone the right to use another’s property for
a certain purpose. A pipeline easement specifically gives the easement holder the right to build and
maintain a pipeline on a landowner’s property. It doesn’t grant the easement holder actual ownership of
the land, just a right to use the land for pipeline purposes. The easement “runs with the land,” meaning
that it remains on the property and applies to all future property owners. The easement should be in
writing, signed by the landowner and recorded with the county recorder. Typically, a pipeline easement
is permanent and does not have a termination date, although parties can agree to an easement that lasts
for a certain period of time. Note that the term “right-of-way agreement” has the same legal meaning as
the term “easement,” and that many refer to the piece of land that is the subject of the ease ment as a
“right -of-way.” For this fact sheet, we will use the term “easement” rather than “right-of-way.”
op
ment of Ohio
’
s shale resources. As shale develo
p
ment
for pipelines that transport shale gas resources. Many
w
ho want to
c
onstruct a pipeline across
their
properties.
om
u
n
de
r
s
tan
d
i
ng and negotiating the pipeline easement
,
T
hi
s
fa
c
t
s
h
ee
t ex
p
lains
p
i
p
eline easements and
rev
i
ews
h
en negotiating a
n
e
a
se
m
e
nt
.
F
o
r a
dd
iti
o
nal inf
o
rmati
o
n
c
onstruction see our pipeline fact sheet series on OSU
egas.o
su.edu
.
a
t
allows
someone the right to use another’s property fo
r
fical
ly gives t
he easement holde
r
the righ
t
t
o
bu
il
d
an
d
It
does
n’t
g
rant th
e
e
a
se
m
e
nt h
o
l
der
actual ownership of
p
ur
p
oses
.
T
h
e
e
a
se
m
e
nt
“
r
un
s
with the land,” meanin
g
a
ll
futu re
propert
y
ow
n
e
r
s
.
Th
e
e
a
se
m
e
nt
s
h
ou
l
d
be
in
w
ith the county recorder. Typically, a pipeline easement
ate,
althoug
h parties
can
agree
to an ease
ment that
las
ts
“
right
-
of
-
f
f
way agre ement” has the sa me lega l meaning as
e
piece of land that is the subject of the easement as a
h
e term “easement” rather than “rig
ht
-
of
-
f
f
way.”
Marcellus
Education
Fact Sheet
Background
S
urging natural gas production in
the Marcellus and Utica shale
formations have ushered in a
wave of pipeline development proj-
ects designed to increase takeaway
capacity out of the Appalachian
basin. As a result, communities
throughout the Commonwealth
are experiencing an intense level of
natural gas pipeline development.
As of the writing of this publication
(August 2015) approximately 3,000
miles of interstate natural gas pipe-
line are being proposed in the region,
with construction reaching into ten
states. Combined, the proposed proj-
ects would have the ability to move
an additional 16.8 billion cubic feet
of natural gas per day plus 120,000
barrels per day of natural gas liquids
out of the Marcellus. Six of the pro-
posed projects would originate in
Pennsylvania’s northern Marcellus
production area and seven, including
two liquids pipelines, would origi-
nate in the western Pennsylvania,
Ohio, and West Virginia tri-state
area (see map on p. 2). Most of these
projects are expected to be complet-
ed and operational by 2017–2018.
What Is a Pipeline Right-of-Way?
A pipeline right-of-way is a strip of
land over and around natural gas
pipelines where some of the prop-
erty owner’s legal rights have been
granted to a pipeline operator. A
right-of-way agreement between the
pipeline company and the property
owner is also called an easement
Negotiating Pipeline Rights-of-Way
in Pennsylvania
and is usually led in the county
Register and Recorders Office with
property deeds. Rights-of-way and
easements provide a permanent,
limited interest in the land that
enables the pipeline company to
install, operate, test, inspect, alter,
repair, maintain, replace, and pro-
tect one or more pipelines within
the designated easement. The
agreement may vary the rights and
widths of the right-of-way, but,
generally, the pipeline company’s
rights-of-way extend 25 feet from
each side of a pipeline unless special
conditions exist. These easements
can be both permanent and tem-
porary, with temporary easements
granting the pipeline company addi-
tional space for construction.
Types of Gas Pipelines
Essentially, three major types of
pipelines occur along the transpor-
tation route: gathering lines, the
interstate pipeline, and the distri-
bution system. Gathering lines are
small-diameter pipelines (6–20 inch-
es) that move natural gas from the
wellhead to a natural gas processing
facility or an interconnection with a
larger mainline pipeline.
Transmission pipelines are
wide-diameter (20–48 inches), long-
distance pipelines that transport
natural gas from producing areas
to market areas. Interstate pipe-
lines carry natural gas across state
boundaries—in some cases, clear
across the country.
6
Hall, Understanding and Negotiating Pipeline Easements.
Easement Negotiation Process (cont.)
7
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Limitations on eased property.
A pipeline easement limits activities on a property only within
the portion of the land that is covered by the easement. On
non-eased portions of the property, landowners have no special
restrictions other than those that may apply under municipal or
state regulations. Pipeline operators follow detailed guidelines
for property use and construction near natural gas pipelines and
equipment. If a pipeline company already has an easement on your
land, you should contact the pipeline operator to obtain information
on these guidelines, as they will restrict what you can do. According
to the Penn State Extension, property owners are, “generally
prohibited from installing any structures, storing anything that could
be an obstruction, or planting trees or shrubs along the right-of-
way. Unauthorized building or planting in the pipeline right-of-way
is known as a right-of-way encroachment… You should never dig
or construct anything within the easement without rst having a
pipeline representative mark the pipeline, stake the right-of-way,
and explain the company’s construction guidelines.”
7
Federal Energy Regulatory Commission (FERC) Guidelines note
that, “Driveways and other improvements without foundations are
normally allowed. All improvements are subject to the terms of the
easement and are subject to negotiation as long as the pipeline
maintenance and safety are not a ected.”
8
A “ nal” pipeline right-of-way can
sometimes change.
It is possible that a pipeline company will negotiate an easement
with a landowner, and later decide to take an alternate route, not
utilizing the negotiated easement. Guidelines published by the
FERC note that, “Because of planning and lead time, the company
may try to obtain easement agreements in advance” of ling
environmental studies with FERC. Landowners should be aware
that, if an easement was negotiated and signed, even if a pipeline
company selects an alternate route, the pipeline company still holds
an easement on the parcel.
7
Penn State Extension - College of Agricultural Sciences, “Negotiating Pipeline Rights-of-Way in
Pennsylvania,”accessed 2015.
8
FERC, “An Interstate Natural Gas Facility on my Land? What do I need to Know?” August 2013.
8
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
?
How can I nd out if there is a pipeline or pipeline
easement on my property? How can I nd a copy of the
easement information?
While this determination may seem straightforward, it can
be a complicated question to answer. Ideally, landowners
already possess a copy of the easement and a map showing the
easement’s location on their property. This document should have
been acquired when the easement was originally negotiated.
However, in some cases, these easements can be quite old, dating
back to the 1950s or earlier, and may have been lost over time. In
reality, many landowners do not have the map, especially in the
case of older easements.
9
As a result most landowners must conduct
research to determine if there is a pipeline easement on their
property, and the details of that easement.
FAQ
Frequently Asked Questions
Regarding Pipeline Easements
?
Caln
Wallace
West Vincent
Uwchlan
East Nantmeal
Charlest
st Nantmeal
West Goshen
West Whiteland
East Go
West Brandywine
Upper Uwchlan
East White
West Pikeland
East Brandywine
East Pikeland
East Caln
Pho
Coatesville
Downingtown
Valley
9
Penn State Extension, 2015.
9
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
If you are starting from scratch in determining information about
a pipeline easement on your property, there are some basic terms
used in real estate that will help you to nd the information you are
looking for including: title, deed, and title record.
Title: In real estate, the word title refers to “the document that
proves ownership of a property.”
10
It is the title which formally states
who owns a property.
Deed: A deed is a document used to show the conveyance of land
from one owner to another. It describes the property—including
the address boundaries, and size—and veri es that the seller
has handed over the title to the buyer. Please note that there are
occasions where a pipeline easement has been recorded as a
miscellaneous deed in the Recorder of Deeds’ o ce, meaning it is
not attached to the actual deed itself.
Title Record: When a property is sold or given to a family member,
both the buyer and the seller may trust each other so well, that they
simply use a deed to transfer the title with minimal paperwork, and
do not necessarily change information on the title. However, land
is most often bought by a non-family member, and the buyer will
require written proof of ownership known as a title record.
To get detailed information about an existing easement or deed,
you can contact the Chester County Recorder of Deeds and provide
them with the par
cel number of the property you wish to learn
more about. The Recorder of Deeds can help you locate a deed and
determine if a pipeline company holds an easement on it.
Landowners can also contact the pipeline operators directly. To
do this, go to the Pipeline Information Center’s Interactive map,
and click on “View Larger Map.” Once there, a speci
c address can
be input into the search box in the upper right hand corner of the
mapping application. The map will zoom to the property in question,
and if there is a colored swath, clicking on that color will result in a
pop-up box that includes the contact information for that pipeline
(either a phone number or email address).
?
If there is a pipeline easement on my land, will a
description of that easement be written down on the
deed to my property?
Not always. Finding out if there is an easement on your
land can sometimes be complex because of the way land
ownership records were written down in the past. To nd out if there
is an easement, rst check your deed. (See preceding information
and link to the Recorder of Deeds.) The deed notes that you own the
land. It also lists who sold (or transferred) the land to you. The deed
may list pipeline easements, or it may not. If the deed does not list
the easement, you should then check to see if a title report (also
called a “title”) was ever written for your property. The title report will
list the names of past owners and may include other information like
easements. However, title reports commonly go back only 50 years,
and so may not include pipeline easements older than that.
In the case of a farm or estate that has been long-owned by one
family or just a few families, there may be no title reports to review.
In some cases, it is prudent to search through old landownership
documents that may be stored with old family photos or family
bibles. It may seem odd, but land ownership documents can
sometime be found this way. Also, you can ask your neighbors if
they have a pipeline easement listed on a deed, a title report, or
any family documents. It is best to get a copy of any neighbor’s
documents, and not rely simply on word of mouth. If you cannot
nd any documentation of an easement on your own, you may need
to hire a professional who can conduct a title search. The process of
nding out if your land is eased can be quite simple if your deed lists
the easement. But keep in mind that in Chester County land records
can date back over 300 years, with many owners and records that
may not be as clearly written or as detailed as they are today.
10
W. Roark and W. Roark, Concise Encyclopedia of Real Estate Terms, Halworth Press, 2006, 160.
10
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
?
How can I contact a pipeline company if I have questions
about pipeline easements, either proposed or already in
place?
Each pipeline company has its own way of coordinating
with the public.
In general, the best way to contact a pipeline company to nd their
web page, locate the individual who deals with public inquiries
and give them a call or an e-mail. You can also visit the Chester
County Pipeline Information Center’s interactive map and click on
the pipeline in question or go t
o the information center’s pipeline
operat
ors’ webpage. Both of these resources include contact
inf
ormation for the pipeline operators located within Chester
County.
?
Are all pipeline easement agreements the same?
There is no standard pipeline easement agreement. Each
pipeline or, in some cases, di erent sections of a pipeline,
may have di erent easement agreement.
?
Can eminent domain be used to acquire a pipeline
easement?
In Pennsylvania, an operator of a “public utility” has the
authority to use eminent domain to acquire a pipeline
easement for gathering, transmission, or distribution
pipelines. According to U.S. Title 15, Chapter 2, Section 15.0201, a
public utility includes a “public corporation, company… or enterprise
fund that owns, operates, or controls a plant or equipment” that is
used for “the production or delivery of power in any form…”
11
As
a result, a pipeline operation that is a designated public utility can
use eminent domain to acquire a pipeline easement just like a water
utility can acquire a water pipe easement.
If a pipeline company is not designated as a public utility, it may
be able to use eminent domain to acquire an interstate pipeline
right-of-way under certain circumstances. In Pennsylvania, eminent
domain or right of condemnation for non-public utilities generally
applies to natural gas transmission lines or lines moving gas
interstate. Siting of natural gas pipelines fall under the jurisdiction
of the Federal Energy Regulatory Commission (FERC) and once
a certi cate has been issued by FERC, the ability to use eminent
domain is authorized.
In the event of an eminent domain proceeding, the landowner is to
be compensated by the court or regulatory authority at a fair market
value for the easement.
Therefore, if a pipeline company with eminent domain authority
wished to place a pipeline easement on a private property, and an
agreement with the landowner cannot be reached, the company can
use eminent domain.
12
Additional information on pipeline regulatory agencies can be
viewed here.
11
Penn State Extension, 2015.
12
Ibid.
11
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
?
How long does a pipeline easement last? Is it
permanent?
An easement is the right to cross or otherwise use someone
else’s land for a speci ed purpose. Except for the temporary
workspace easements described below, pipeline easements
are perpetual. They are said to “run with the land” which means that
when a parcel with an easement is sold, the new buyer will also be
subject to the restrictions of the easement previously placed on the
land. Easements for pipelines are a form of an “a rmative easement;”
it entitles the holder to do something on another individual’s land,
such as crossing over the land. Generally, easements are permanent
unless the written terms of the easement state that it will become
extinguished at a speci c time. A change in ownership of the
property does not alter the easement agreement. It is possible that
a pipeline company might remove (or extinguish) an easement,
but that is not common. Pipeline companies generally prefer to
retain any easements they establish, even for projects that never
get constructed. That way, the companies have the option of using
that easement for a project in the future that may not even be in the
planning stage.
?
What is the di erence between a Temporary Workspace
Easement and a Permanent Easement?
There are two types of easements that are typically part
of a negotiation. They include permanent easements
and temporary workspace or construction easements.
Often a pipeline company will seek a permanent easement, where
the actual pipeline is installed, as well as an additional workspace
easement for construction activity. The temporary workspace/
construction easement should terminate either upon completion of
construction or at a speci ed time agreed upon by both parties. The
permanent easement lasts in perpetuity, except under very speci c
circumstances.
?
Do I pay taxes on the proceeds from a pipeline
easement?
A property owner is entitled to the fair market value of the
property eased. Therefore, regardless of how an easement is
obtained, it is treated as a sale for tax purposes. Severance
damages for the portion of the property not taken, compensation
for personal property and xtures, compensation for temporary
space needed for construction, damage to growing crops, relocation
expenses, and interest on these amounts may be recovered, in
appropriate circumstances. It is advisable to contact your nancial
advisor or tax preparer for further information as to possible tax
rami cations.
12
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
?
If there is a pipeline easement on my land, does that
mean there is a pipeline on my property?
Not necessarily. Sometimes pipeline companies establish
an easement and, for a variety of reasons, do not construct
the pipeline. Any landowner whose property is covered
by an easement should be aware that a pipeline could potentially
be located within that easement space at some point in the future.
Additionally, your easement may be for temporary workspaces,
access roads, or other setbacks, that may not directly include a
pipeline. It should also be noted that pipelines are not necessarily
located in the center of a R.O.W. and could be closer to one side or
the other.
?
Who from the pipeline company has access to walk
across or work on land with a pipeline easement?
If a pipeline company has an easement on your land, eld
sta can typically access your property. Pipeline companies
may hire subcontractors as consultants, who also can access
your land. Sometime, these consultants are hired to complete a
very speci c task, like checking to see that trees are not growing
on the pipeline right-of-way. As a result, the consultant may not
be informed about anything other than their task, and may not be
able to answer questions about
anything other than what they
are there to do.
It is important to keep in mind
that a pipeline easement simply
makes it possible for a pipeline
company to build a pipeline,
which could happen within a
few years, within a decade, or
sometimes, never. It is possible
that a pipeline will never be
built in an easement. However, to be safe, a landowner should
assume that a pipeline will be built on any new easement sometime
in the near future. This way the landowner can have plans in place
well in advance of any construction activity.
?
Can a pipeline easement be successfully negotiated?
Yes. Many aspects of a pipeline easement are negotiable.
Typically a pipeline representative will present a landowner
with a pre-printed agreement. This document should serve
as a starting point for a two-way negotiation, or it can
be fully accepted or rejected by the landowner. You can negotiate
changes to the easement by creating an addendum that is approved
by both parties. (See pages 4 to 7 for more information on the
easement negotiation process.)
?
If my neighbor has been given information from
a pipeline company about an easement, will that
information apply to my land as well?
No. You should always verify information you get from
friends and neighbors. A pipeline is more than an
underground tube. It is possible that your neighbor’s easement may
be used for a segment of pipeline (or pipelines) that has a di erent
size or design from the segment of pipeline on your property.
Additionally, what your neighbors negotiate, regarding landscaping
and future maintenance, may not be what you have negotiated. That
is why it is important to talk with your neighbors, and if necessary, a
lawyer, to negotiate an agreement.
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Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
?
What types of maintenance are performed by the
pipeline company on their eased lands?
A pipeline company will regularly inspect its right-of-way.
They may use a combination of sta walking on the ground
and inspections from aircraft. The Penn State Extension
notes that these inspections are used to “check right-of-way
conditions, test for leaks, install and maintain pipeline markers, and
clear brush that restricts access to the right-of-way or visibility during
inspections. Rights-of-way are kept clear of trees, brush, and other
obstructions so the pipeline operator can safely operate, inspect,
maintain, and repair its pipelines.”
13
?
What can I do with the portion of my land that is subject
to a pipeline easement?
Generally, property owners are prohibited from installing
any structures, storing anything that could be an
obstruction, or planting trees or shrubs, whose roots could
compromise the pipeline, along the right-of-way. Unauthorized
building or planting in the pipeline right-of-way is known as
right-of-way encroachment. The pipeline operator may extract
anything growing within the right-of-way that may compromise the
equipment or infrastructure.
Pipeline operators will regularly conduct aerial and ground
inspections to check right-of-way conditions, test for leaks, install
and maintain pipeline markers and to clear brush that restricts access
to the right-of-way or visibility during inspections. Rights-of-way
are kept clear of trees, brush, and other obstructions so the pipeline
operator can safely operate, inspect, maintain and repair its pipelines.
Normal gardening and agricultural activities are generally
acceptable. However you should never dig or construct anything
within the easement without rst having a pipeline representative
mark the pipeline, stake the right-of-way, and explain the company’s
construction guidelines, or calling 811.
Some municipal zoning ordinances also include
minimum setbacks and other restrictions that apply
to land uses within a speci ed distance of existing
pipelines. It is advisable to check with your municipal
zoning o cer before proceeding with any planned
improvements near a pipeline or pipeline right-of-way.
Although pipeline markers are located along the path of a pipeline,
they only identify the general location of the pipeline.
?
What types of plants can be grown on land that has a
pipeline easement?
The Penn State Extension notes that “normal gardening
and agricultural activities are generally acceptable” within
a pipeline easement.
14
If a pipeline is built, the disturbed
soil can impact plants growing upon it. When a trench for a pipeline
is dug, the topsoil is removed and stockpiled, taking steps to avoid
compaction during removal and stockpiling.
15
According to FERC
guidelines, “Trees with roots that may damage the pipeline or its
coating and other obstructions that prevent observation from
aircraft during maintenance are usually not allowed.”
16
In terms of active farm operations, FERC documents also indicate
that an easement condition can be added so that, “the continuation
of past agricultural uses and practices on or across the right-of-
way would be permitted. Buildings and large trees are usually not
allowed.”
17
In Lancaster County, some farmers found that their
croplands atop pipeline R.O.W.s were less productive. Others
however, observed mostly normal productivity after a few years of
proper soil management.
18
13
Penn State Extension, 2015.
14
Ibid.
15
Ibid.
16
FERC, “An Interstate Natural Gas Facility on my Land? What do I need to Know?” August 2013.
17
FERC, 2013.
18
Ed Crable, “Farmer: Crops stunted over gas pipelines Lancaster County farmer says crop yields never the
same after gas pipelines,” Lancaster Online, August 12, 2014, accessed April 2015.
Always call
8-1-1 before
you dig!
14
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
The following information addresses some of the basic regulatory
aspects of pipelines. Additional information on the regulatory
process can be viewed here.
What types of projects are subject
to PA PUC jurisdiction?
The Pennsylvania legislature has empowered the PA Public Utility
Commission (PUC) to direct and enforce safety standards for
pipeline facilities and to regulate safety practices of certi cated
utilities engaged in the transportation of natural gas and other
gas by pipeline. The PUC also has authority to enforce federal
pipeline safety laws (otherwise enforced by PHMSA) as they relate
to non-public utility gas and hazardous liquid pipeline equipment
and facilities within Pennsylvania. These include cooperatively
owned natural gas distribution systems, non-utility natural gas
transportation, and gathering lines and propane distribution
systems. The PUC has jurisdiction over 35 gas utilities. It does not
have jurisdiction over bottled propane gas, and most utilities owned
and operated by cities, boroughs, or townships. The PA PUC utilities
website and products that they regulate can be viewed here.
Pipeline
Regulations
15
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
What are the di erent phases of
the FERC process?
When a natural gas pipeline is proposed, the FERC process
generally consists of two phases. The rst phase is called “Pre-
Certi cate Activities” and the second is “Post-Certi cate Activities.”
Pre-certi cate activity involves the ling of the application, public
participation, intervention, and environmental reviews. Post-
certi cate activity happens after a certi cate has been issued.
The process also includes opportunities for rehearing and judicial
reviews of the certi cate, pipeline compliance with FERC-issued
conditions, eminent domain, construction, and ongoing operations.
The FERC processes can be viewed here. The FERC citizen guide “An
I
nterstate Natural Gas Facility on my land? What do I need to know?”
can be viewed here.
Is the Chester County Conservation
District involved with pipeline
construction earth disturbances?
Yes. Under an agreement with the PA DEP, the Conservation District
has assumed local responsibility for speci c program activities
related to erosion control and the resulting sediment pollution that
results from all types of earthmoving activities. The Conservation
District administers the National Pollutant Discharge Elimination
System (NPDES) Program to ensure that best management practices
are implemented to control erosion and sedimentation associated
with earth disturbances. This permit speci cally regulates the
discharge of stormwater from construction activities. Permits are
issued based upon whether the receiving stream is a High Quality/
Exceptional Value stream, or a non-protected stream.
When does the Chester County
Conservation District review a
project?
The Erosion & Sediment Control regulations found in PA Code Title
25 Chapter 102 indicate that an Erosion and Sediment Control Plan
is required when an earth disturbance is greater than 5,000 square
feet. Additionally, any disturbance associated with a Chapter 105
Permit (for stream crossings, wetland disturbances, etc.), or one acre
or greater disturbance must have an Erosion and Sediment Control
Plan developed and reviewed by the Chester County Conservation
District. You can read more about how the Conservation District
administers the program for Chester County here.
16
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Resources
American Institute of CPAs, “Condemnation of Pipeline Easements:
The Landowners Perspective, 2014”
http://www.aicpa.org/Publications/TaxAdviser/2014/march/Pages/
Kebodeaux_mar2014.asp
x
Eric Camp, “Natural Gas Pipeline Easement and Rights-of-Way
A
greements: A Landowners List of Terms to Negotiate”
http://cornwallvt.com/vermont_gas/landowners_negotiation_list.pdf
Carolyn Elefant, “Knowing and Protecting Your Rights When an
I
nterstate Gas Pipeline Comes to Your Community”
http://lawo c
esofcarolynelefant.com/wp-content/uploads/2010/06/
FINALTAGguide.pdf
Chester County Bar Association lawyer referral service
http://www.chescobar.org/?page=LawyerReferralServ
Chester County Conservation District
http://www.chesco.org/conservation
Chester County Pipeline Information Center, Interactive Pipeline Map
http://www.landscapes2.org/pipeline/PipelineMapInteractive.cfm
Chester County Pipeline Information Center, Pipeline Operators
http://www.landscapes2.org/pipeline/Links.cfm
Chester County Recorder of Deeds
http://chesco.org/Recorder
Ed Crable, “Farmer: Crops stunted over gas pipelines. Lancaster
C
ounty farmer says crop yields never the same after gas pipelines,”
Lancaster Online
http://lancasteronline.com/news/local/lancaster-county-farmer-says-
cr
op-yields-never-the-same-after/article_7ba7f6b0-2246-11e4-bba8-
001a4bcf6878.html
17
Landowners Resource Guide for Pipeline Easements and Rights-of-Way Pipeline Information Center
Erosion & Sedimentation/Stormwater Management Programming by
the Chester County Conservation District
http://chesco.org/index.aspx?NID=284
FERC Citizen Guide, “An Interstate Natural Gas Facility on my land?
What do I need t
o know?”
http://www.ferc.gov/resources/guides/gas/gas.pdf
FERC processes
http://www.ferc.gov/resources/processes/ o
w/lng-1.asp
FindLaw, “What is a Property Easement, 2010”
http://blogs. ndla
w.com/law_and_life/2010/08/what-is-a-property-
easement.html
Keith Kebodeanx, “Condemnation of Pipeline Easements: The
Lando
wner’s Perspective,” The Tax Advisor
http://www.thetaxadviser.com/issues/2014/mar/kebodeaux-
mar2014.html#sthash.X80hBDeH.dpuf
Peggy Hall, et al., “Understanding and Negotiating Pipeline
Easements“
http://monktonvt.com/wp-content/uploads/2013/03/OSU_
Understanding_P
ipeline_easements.pdf
PA PUC utilities and products that they regulate
http://www.puc.pa.gov/utility_industry/transportation/pipeline_
saf
ety/jurisdiction_regulations.aspx
Pipeline Safety Coalition
www.pscoalition.org/pages/for-landowners
Penn State Extension, “Negotiating Pipeline Rights-of-Way in
P
ennsylvania”
http://extension.psu.edu/natural-resour
ces/natural-gas/
publications/negotiating-pipeline-rights-of-way-in-pennsylvania
Penn State Extension, “Natural Gas Pipeline Right of Ways:
Understanding Lando
wner Rights and Options”
http://extension.psu.edu/natural-resour
ces/natural-gas/
news/2010/04/pipelineinfo
Pipeline Safety Trust, “Landowner’s Guide to Pipelines”
http://www.landscapes2.org/pipeline/pdf/LandOwnersGuide2014.
pdf
Regulatory agencies information
http://www.landscapes2.org/pipeline/Agencies.cfm
