Easements: What You Should Know
Here is AgriLife’s easement checklist summary:
• Identify the parties. Include the names and ad- dresses of the landowner and the company acquiring the easement. Require the pipeline company to designate a specifi c contact person in case any issues arise, and provide the landowner with a notice within a set period (such as 30 days) if the designated contact person changes.
• Determine compensation. Specify the compensa- tion the company will make for the easement, including when the payment is due. Generally, payment is based per foot, per acre, or per rod (a rod is 16.5 feet) of the pipeline, but may also be a set sum rather than tied to a measure- ment. Consider seeking payment per square foot rather than per foot or per rod, in order to be adequately compensated for the entire area the company will use. If the company wants a temporary work area on the property in addi- tion to the actual easement area, seek additional compensation for the temporary use of this area. Discuss with an accountant how the payment will be described or structured.
• See that the easement is specifi c, not blanket. Ease- ment agreements often state that a pipeline will be laid “over and across” the landowner’s property. This is a blanket easement that al- lows the company to place the line anywhere on the property, even if the company verbally promised to place the line in a certain location. To avoid this issue, defi ne a specifi c easement area and have the company survey it along with any temporary work areas. Make that survey an exhibit (documented evidence) to the ease- ment. Also consider requiring a specifi c setback distance from any buildings or structures if this is a potential issue.
88 The Cattleman March 2015
• Grant a nonexclusive easement. Reserve the right to grant additional easements to other parties within the easement area. For example, if an- other pipeline company wants to place a line on the property, the landowner may want the right to have the line placed within the same easement, rather than having two separate ease- ments across the property.
• Check restrictive covenants. The easement may be planned for property that is subject to re- strictive covenants which might specify the required location and depth of any pipelines. Check any restrictive covenants to determine how they might apply.
• Limit the easement agreement to only 1 pipeline. Many proposed easement agreements seek to allow the company to “lay lines” or “construct pipelines” across the property. Limit the ease- ment agreement to allow only one line on the property. Also, prohibit the company from as- signing or granting rights to another party to lay an additional pipeline in the easement. With this term included, the landowner retains the right to negotiate and receive payment for all ad- ditional lines to be added to the easement area, rather than receiving just a one-time payment for an easement that could allow for additional lines in the future.
• Limit the types of products run through the line. In addition to restricting the easement to a single line, seek to limit that line to carrying a single product. For example, a landowner might grant the right to lay a natural gas pipeline, but if the company later wants to fl ow carbon dioxide through the line, a second easement would be necessary.
thecattlemanmagazine.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132