Montana Pipeline Easement for Natural Gas

State:
Montana
Control #:
MT-EAS-4
Format:
Word; 
Rich Text
Instant download

Description

Grants exclusive right, privilege and easement to survey, construct, maintain and operate a natural gas pipeline and appurtenances on, over, under, across and through a strip or strips of land.


An easement gives one party the right to go onto another party's property. That property may be owned by a private person, a business entity, or a group of owners. Utilities often get easements that allow them to run pipes or phone lines beneath private property. Easements may be obtained for access to another property, called "access and egress", use of spring water, entry to make repairs on a fence or slide area, drive cattle across and other uses. The easement is a real property interest, but separate from the legal title of the owner of the underlying land.


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FAQ

API recommends setbacks of 50 feet from petroleum and hazardous liquids lines for new homes, businesses, and places of public assembly (API 2003). It also recommends 25 feet for garden sheds, septic tanks, and water wells and 10 feet for mailboxes and yard lights.

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.

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.

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.

Neeta. Dear Neeta: A gas easement is a portion of someone's private property, usually near one of the property lines, where the gas company or other utility service is permitted to bury their service lines and where they may occasionally need to do maintenance or repairs of one kind or another.

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Montana Pipeline Easement for Natural Gas