Pipeline Easement and Accommodation Agreement (For Gas Pipelines on Land in Which Grantor Reserves Coal Rights)
Definition and meaning
The Pipeline Easement and Accommodation Agreement is a legal document that grants permission to a gas pipeline company (the Grantee) to construct, maintain, and operate pipelines on a property's land while allowing the landowner (the Grantor) to retain certain rights, specifically coal rights. This agreement outlines the terms under which the Grantee can access and utilize the property while respecting the Grantor's ongoing ownership and rights.
Key components of the form
This agreement typically includes the following key components:
- Identification of the parties: Names and addresses of the Grantor and Grantee.
- Description of the property: Specific location and dimensions of the land being used for pipeline installation.
- Easement details: Width and scope of the pipeline easement granted to the Grantee.
- Responsibilities and liabilities: Obligations of both parties concerning maintenance, damages, and indemnification.
- Rights related to coal interests: Specification that the easement is subordinate to the Grantor's coal rights.
Who should use this form
This form is appropriate for landowners who wish to allow gas pipeline companies to install and operate pipelines on their property while retaining specific rights, particularly related to coal resources. It is also necessary for gas companies seeking to formalize the use of land for utility purposes, ensuring compliance with legal standards and protecting both parties' interests.
Common mistakes to avoid when using this form
When completing this agreement, avoid these common errors:
- Incomplete property description: Ensure full and accurate details of the property are provided.
- Neglecting to review legal obligations: Both parties should be aware of their rights and responsibilities as outlined in the agreement.
- Failure to specify compensation: Clearly state the compensation for the use of land and any damages incurred during construction.
- Ignoring local laws: Ensure compliance with applicable state or local regulations regarding pipeline installation and easements.
Form popularity
FAQ
When calculating, one (1) linear rod equals sixteen and one half feet (16.5'). The variations in offers by the pipeline company to different landowners can exceed 500%.
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.
Tax Reporting Whoever is paying for the easement will send you a Form 1099 at the end of the year. If you get a 1099-MISC for rental payments, you report the income on Schedule E. For a permanent easement, you get a 1099-S and use Schedule D to report capital gains.
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.
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.
Typically, they are seeking a zone with the rod merely as the middle. For example, a rod with a 502032 easement zone requires 825 square feet. 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.
You are willing to either share in or bear the cost of land maintenance and are now ready to negotiate. Reducing the impact the easement has on the neighbor will help convince him to say yes. Include in the negotiations elements that include his continued use and rights to share that parcel of land with you.
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.