If And When You Must Negotiate A Pipeline Easement

If you are faced with a Pipeline Easement Agreement there are MANY things to consider.   You must protect your land, home, family and future.

The land agent who knocks on your door works for the pipeline corporation – his/her only job is to get your signature on a contract. His job is not to lay out the pros and cons or provide you with the information you would need to make an informed decision.  Language on these contracts typically favors the pipeline company, not the landowner.

Nexus Pipeline, Kinder Morgan Utopia and ET Rover – They do NOT have permits to build yet. You are under NO obligation to sign anything now.  And we recommend you delay.  

Here is a short list of what you will want to think about

  • An easement is on your deed forever – even if the pipeline is never built
  • Easements may be sold later to another pipeline corporation and there would be no renegotiation or additional compensation – unless you add language to protect against this
  • Easement agreements may include permission for above ground equipment or other facilities now or in the future – unless you specify otherwise
  • Multiple pipelines may be placed in the easement area. The company could come back later and add more pipelines in the easement unless you specify 1 pipeline ONLY
  • Pipeline companies could later change the type of transported materials.  The pipeline company can switch from natural gas to another kind of product unless you specify 1 product ONLY
  • You have the right to negotiate where on your property the pipeline is located, how deep it is buried, how trees are removed, how the soil layers are taken care of and and how the company can access your property
  • You are still responsible for property taxes and must also pay taxes on any money received for the easement
  • Additional property Insurance may be needed
  • You may be exposed to lawsuit and liability
  • An easement may impact your mortgage, refinancing your home, selling your property, property insurance and/or property values

We highly recommend you consult with a legal firm that specializes in pipeline easements and land acquisition. Contact us if you need a list of firms, however we do not endorse any specifically.