This form is used when Grantor grants, assigns, and conveys to Grantee, its successors and assigns, a right of way and easement and the privilege to lay, repair, maintain, operate, and remove pipelines and replace existing lines with other lines, for the transportation of oil or gas and related products, water, and any other fluids or substances, together with the right to install valves, fittings, meters and similar appurtenances as may be necessary or convenient to the operation of any lines, and to erect, repair, maintain, remove and operate electric lines, telephone lines, graphite and steel anodes, and other devices (for the control of pipeline corrosion), over, across, and through Grantor's land described within.
Pipeline Easement
State:
Multi-State
Control #:
US-OG-330
Format:
Word;
Rich Text
Instant download
Description
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FAQ
How much money should landowners get when an oil or gas pipeline crosses their land? As it stands, landowners receive a one-time payment roughly based on the length of the pipeline, with rates varying from $5 to $50 per foot or more for a Marcellus or Utica shale pipeline right-of-way agreement.
Easements are treated as a recovery of the basis of the property first, with any excess proceeds treated as capital gain, which is taxed at a lower rate than ordinary income. The basis of property that offsets an easement is limited to the basis of the affected acres or square footage.
If an easement is 50 rods long, that is almost an acre. In a recent case, a pipeline company paid some owners $180 per rod and others $767 per rod for the same project.
Pipelines can reduce property values by 5 to 40 percent by making them less attractive to potential buyers, according to local Realtors.
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.
