Real Estate & Property Law

When a gas pipeline easement must stay an easement

By Alan Ackerman

Star Telegram

Several southeast Arlington residents say they fear for their safety — and their property values — after learning about a natural gas pipeline that will run behind their back yards beneath high-voltage power lines.

The pipeline would be buried largely in utility easements, except for a section of the Coldwater Creek neighborhood where some residents own the land behind their fence lines where the pipeline would run.

Wiggs said that his company has made fair offers for the easement use based on independent appraisals and that some property owners have negotiated higher payments. Wiggs said the company will go to court to reach a settlement with property owners who do not voluntarily sign agreements.

Cole and other residents said they feel as if they have no one to look out for them. The Texas Railroad Commission cannot regulate the pipeline's route, and Arlington has control only when the pipeline crosses public property.

In some jurisdictions, easements for a lengthy period of time are considered fee, or complete takings. By example, historically in the Midwest, 99 year leases were considered to be sales of the total property, rather than a lease. So long as the 40 year easement does not fall within a fee sale, when the utility company comes to condemn, at best it will not try to obtain a fee take. This is because the company has no right to take fees of some of the properties and easement ownership in others. It will be interesting to see what the utility does in this situation.  

Full post as published by National Eminent Domain Blog on November 24, 2009 (boomark / email).