Pipeline Easement Verification Guide for Oil and Gas Projects
In the heart of Ohio's oil and gas regions, landowners are often approached with proposals for pipeline easements. These agreements, while beneficial for energy infrastructure development, can raise concerns for property owners. Here's a breakdown of what landowners in Eastern Ohio might expect and the key issues to consider.
Oil and gas pipeline easement agreements typically grant a company the right to construct, operate, and maintain pipelines on a landowner's property without owning it outright. These agreements specify land access permissions, restrictions on usage, and sometimes include environmental management requirements. Compensation provisions are also common, offering landowners payment or in-kind benefits like maintenance or infrastructure upgrades.
However, for Eastern Ohio landowners, several potential concerns arise.
- Loss of control and land use restrictions: Easements may limit the owner’s ability to use their land freely, as the easement grants access and operational rights to the pipeline company.
- Environmental and property damage risks: Construction, maintenance, or accidental leaks/spills could harm soil, vegetation, water quality, or other natural resources on the property.
- Adequacy of compensation: Landowners often have concerns about receiving fair market value or proper compensation for granting easement rights, including accounting for long-term inconvenience or property value diminution.
- Legal complexities and negotiation challenges: As easements are legal instruments that can be complicated, landowners may need professional advice to protect their rights and negotiate favourable terms, especially if companies push for compulsory easements.
The agreements themselves are comprehensive, outlining actions or inactions that result in abandonment of the pipeline, routine inspection and maintenance schedules, and prohibited times for inspection and maintenance activities. They also include methods for replacing topsoil and vegetation after construction, requirements for restoration of land surface, and restrictions on construction-related activities.
In the event of pipeline termination or abandonment, the company is obligated to notify and remove structures and equipment. The easement agreement also outlines procedures for addressing and handling disputes.
Moreover, the construction section of the agreement outlines a timetable for pipeline construction, access rights for landowners during construction, and adherence to Ohio Department of Natural Resources pipeline standards. The agreement may include payment for damages resulting from construction, maintenance, and the long-term presence of the pipeline on the property.
It's worth noting that a typical oil and gas pipeline easement agreement includes a granting clause with a clear statement of the property rights being granted. Landowners in the path of proposed pipeline routes can expect offers from companies for pipeline construction on their properties. The payment for the permanent pipeline easement is based on specific property characteristics and circumstances.
Lastly, the Fraser Institute concluded that pipelines are the safest mode of transportation for high volumes of petroleum products. Despite this, it is crucial for landowners to seek expert legal counsel when approached for pipeline easements to navigate these issues effectively.
[1] Oil and Gas Pipeline Easements: What Landowners Need to Know. Ohio State University Extension. (2018). [Online]. Available: https://ohioline.osu.edu/factsheet/aglaw-fact-sheets/oil-and-gas-pipeline-easements-what-landowners-need-to-know [2] Pipeline Easements: What Every Landowner Should Know. Penn State Extension. (2018). [Online]. Available: https://extension.psu.edu/pipeline-easements-what-every-landowner-should-know [3] Pipeline Easements: What Every Landowner Should Know. University of Missouri Extension. (2018). [Online]. Available: https://extension2.missouri.edu/g6141 [4] Pipeline Easements: What Every Landowner Should Know. Purdue Extension. (2018). [Online]. Available: https://www.extension.purdue.edu/extmedia/FNR/FNR-540-W.pdf [5] Pipeline Easements: What Every Landowner Should Know. University of Kentucky Cooperative Extension Service. (2018). [Online]. Available: https://www.ca.uky.edu/agc/pubs/id/id119/id119.pdf
- In the oil and gas industry, natural resources such as soil and crops can potentially be affected by pipeline construction and maintenance activities.
- For businesses in Eastern Ohio, working with the oil-and-gas industry and securing pipeline easements might involve negotiations on financial matters, including compensation for the use of land.
- The energy sector, including the oil-and-gas industry, may impact local landowners' businesses and property through the establishment of pipeline infrastructure, potentially limiting land use and raising concerns about environmental impacts.
- Beyond the energy industry, farming or livestock businesses in oil and gas regions may require adjustments or face challenges due to the presence of pipelines and associated activities, such as infrastructure upgrades or maintenance.
