How Pipelines Can Affect Your Property Ownership 

If you own land in Texas, or you’re interested in buying it, your property could be impacted by a pipeline. Utility companies and common carriers that transport gas, oil, carbon dioxide, and other minerals have the right to use private property for pipelines. While you cannot stop them from gaining access to your property, you can negotiate the agreement. Here are some commonly asked questions and answers about pipelines and how they can affect your property ownership. 

What is a pipeline? 

Pipelines are long pipes that are typically buried underground for safety reasons and to protect the pipes from damage. These pipes are used to transport natural gas, crude oil, gasoline, propane, and other products. There are a variety of pipelines that may on or near your property.  

Usually, the pipelines are located on a property easement called a right-of-way. The right-of-way is a strip of land that provides the pipeline company sufficient access to perform maintenance and inspections.    

How do pipelines affect property ownership?  

If there is a pipeline right-of-way located on your property, you are still the legal owner of the property. The pipeline or utility company merely has an easement, which grants it the right to use a part of your land to install and/or repair the pipelines. Easements do not alter ownership; they just impact how the property may be used.  

How do I find out if there is pipeline or pipeline easements on my property?  

There are several ways to find out if there’s a pipeline or pipeline easement impacting your property: 

• Reference your property records for information on pipelines 
• Call 811 or your local One-Call center to locate pipelines on your property  

• Check the National Pipeline Mapping System for transmission pipelines in your area 

Note: Before you proceed with any projects on your property that require excavation, be sure check for and locate any existing pipelines.  

How will the use of my property change if I grant a pipeline easement?  

Landowners are typically prohibited from taking action that would hinder the pipeline company’s access to its easement. Thus, you should not install or construct improvements or structures, like buildings or trees, within the right-of-way. By the same token, the pipeline company cannot interfere with your use and enjoyment of the property. 

Generally, a landowner and pipeline company will enter into a written agreement that governs: 

• Use of the easement 
• The impact on the property 
• Rights and responsibilities of each party 

A landowner should not sign an agreement with a pipeline company unless he or she fully understands the ongoing impact the easement will have on the property.  

It’s recommended that you work with an attorney when negotiating with a pipeline company. This ensures that your rights as the property owner are adequately protected as real estate brokers and agents cannot give you legal advice.  

Can I get compensated for granting a pipeline easement?  

Yes, pipeline companies often compensate landowners for right-of-way access. The amount is negotiable and usually based on the fair market rate in the community.    

Who pays the taxes for the easement?  

Taxes are usually paid by the landowner, but this can be negotiated for in the easement agreement. 

Who maintains and repairs the pipeline easement?  

Generally, the pipeline company will maintain the easement property and make any necessary repairs to the pipeline. Your easement agreement with the pipeline company should state whether you have any similar obligations.  

What should I do if the pipeline company wants to use expand the easement or use another part of my property to access the easement?  

You and your attorney should negotiate the terms of the new arrangement with the pipeline company. Depending on the desired changes, this may involve drafting an entirely new agreement or agreeing to a one-time allowance.  

You do not have to allow the pipeline company to use other parts of your land that are not part of the original easement agreement.  

Should I be concerned about the environmental impact on my property?  

The installation and operation of pipelines involve many environmental risks. As such, pipelines companies and operators must comply with a number of local, state, and federal environmental laws. The landowner should seek compensation for any harm or loss from the pipeline company for any and all environmental damages and hold the company contractually liable for the full cost of any remediation.  

The environmental impact on your land might be particularly important if you raise livestock, grow crops, or participate in other related activities.  

Do I have to grant an easement to the pipeline company?  

In Texas, the owner of a common carrier or gas utility pipeline has the statutory right of eminent domain. This means that you generally cannot prevent them from putting a pipeline on your property. Common carriers are pipeline companies that transport oil, oil products, gas, carbon dioxide, salt brine, and other minerals.  

The power of eminent domain also gives the pipeline company the power to condemn your land. Therefore, you and your attorney should willingly negotiate the terms of an easement agreement with such common carriers before a condemnation proceeding is brought to obtain the most favorable terms.   

Still have questions?  

If you have more questions about pipelines and property, do not hesitate to contact Texas Land Brokers. Tony Malley is both a real estate broker and an attorney. With decades of experience in real estate, law, and finance, we can help you negotiate pipeline agreements and other complex legal issues that may arise.