Pipeline Right of Way Grant

A Right of Way Easement is a form of Easement annexed to land which grants a right to travel over a part of the landowner's property. This right of way is usually granted to neighbouring landowners. The legal rights of the attached landowners to use and maintain the right of way may not always be clear.

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.

Pipelines can reduce property values by 5 to 40 percent by making them less attractive to potential buyers, according to local Realtors.

What is a Pipeline Easement? Generally, an easement is a legal interest that allows someone the right to use another's property for a certain purpose. A pipeline easement specifically gives the easement holder the right to build and maintain a pipeline on a landowner's property.

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.

A right-of-way is a strip of land typically about 50 feet wide (depending on location) containing a pipeline or other utility. Many rights-of-way contain more than one underground pipeline or utility and can be wider depending on the number of infrastructure assets within.

A private Right of Way typically gives one land owner the right to use another's property, usually a road of some kind, to get to and from her land. This right is usually given in the form of a deed, much like a deed to property.The deed granting a Right of Way is often vague, and doesn't help clarify things.

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.

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.