SKIP TO
CONTENT
Utility Easements Explained
What Is a “Utility Easement”?
Eminent domain and condemnation cases do not always involve the taking of property in fee simple, which means all of the ownership rights to a piece of property. Sometimes government or utility entities request the right to use a portion of land for limited purposes to lay underground or aboveground pipes, power lines, or other utilities. This type of acquisition is known as a “utility easement” and is a common issue for many property owners.
Examples of the types of utilities that may require an easement include:
- Electricity
- Water
- Natural gas
- Wastewater
- Fiber optic or other communication lines
Determining Valuation and Damages
When determining the value of land needed for easement, the total compensation is based on the value of the footprint of the easement area, plus any diminished value to the rest of the property that is caused by the easement (also called “remainder damages”). An easement typically allows the easement holder to do certain things, like clear the surface of the easement, trench the surface to allow for the installation of below ground utilities, or other similar activities. Easements can be as small as a few feet wide for very small pipelines to several hundred feet wide for large above ground electric transmission lines.
Compensation is determined by the equation below.
Value of the Easement Footprint Area +
Remainder Damages (diminished value to the remainder property) +
Cost to Cure (hard costs incurred to restore property to pre-taking condition) =
Total Compensation
An illustration of a pipeline easement and potential damages associated.
More on the Different Types of Utility Easements
As we discussed above, utility easements are commonly used to facilitate the installation of equipment for electricity, water, natural gas, wastewater and communication lines. Within each of these five broad categories, the specific type of equipment installed (and the specific type of utility easement required) can take multiple different forms.
It isn’t always easy to spot these differences—at least not right away—and this is one reason why it is important to seek advice from an experienced lawyer early in the process. For example, with regard to utility easements for electricity, there are generally two types of easements:
- Transmission lines
- Distribution lines
Most landowners will not be familiar with the difference between transmission lines and distribution lines. But, to make an informed decision about granting a utility easement (and how much compensation to seek in return), understanding this difference is crucial.
A transmission line carries high-voltage electricity over a long distance. If you’ve ever seen a long line of huge towers carrying electric cables high above a swath of cleared land or along the side of a major roadway, this is a transmission line. In contrast, a distribution line carries lower-voltage electricity from a transmission line to a home or business. Utility easements for distribution lines can be much smaller and much less impactful than easements for transmission lines—and these are key factors to consider as a landowner.
There are often similar considerations involved with other types of utility easements as well. Will the utility equipment be installed underground or above ground? How much of your land will the easement impact? Will you need to relocate a well, septic tank, or other site improvements? Will the equipment make noise, emit an odor or present potential health or safety risks? These are just some of the questions that landowners need to have answered in order to make informed decisions.
How Wide Is a Utility Easement?
In many cases, a utility easement may run the entire length of the perimeter of a landowner’s property. In other cases, the utility easement could bisect the middle of a property. As a result, when it comes to understanding how much land the easement will impact, one of the primary concerns is the width of the easement.
So, how wide is a utility easement?
The short answer is, “It depends.” In many cases, a utility easement could range from roughly 10 to 50 feet in width. However, utility easements can also be as narrow as a few feet, and as wide as hundreds of feet in the case of an easement for high voltage overhead transmission lines. This also helps to underscore the importance of informed decision-making. As a landowner, before you say “yes” or “no” to a proposed utility easement, you need to have all of the relevant details.
Ultimately, you may not be able to say “no” if the government or a utility company exercises its condemnation power. If you are condemned, oftentimes the only issue to litigate is the just compensation owed for the taking.
5 Steps for Evaluating a Request for a Utility Easement
With all of this in mind, what should you do if you have received a request for a utility easement on your property? In this scenario, you should:
- Consult with an Eminent Domain Lawyer – Utility easements are complicated, and the eminent domain process is more complicated still. As a result, you will want to work closely with an experienced eminent domain lawyer throughout the process.
- Determine the Nature and Scope of the Proposed Easement – Working with your lawyer, you will want to ensure that you have a clear understanding of both the nature and the scope of the proposed easement. You should work with your lawyer to assess the easement’s potential impact on your property in terms of physical damage, the need to relocate any equipment or structures and diminished value.
- Determine What Constitutes Fair Compensation – At this stage, your lawyer should be able to help you determine what constitutes fair compensation for the easement, including any impact to the property outside the easement area (called the “remainder” property). This could involve obtaining one or more appraisals and analyzing market data or similar utility easements in the area.
- Easement Terms – Most utility easements are permanent, perpetual easements meaning they will burden the property forever. The terms of the easement agreement are incredibly important because those terms will control the rights and obligations of the parties forever. It is critically important that the easement agreement terms are fair to each party. This is precisely the sort of assistance an experienced eminent domain attorney can provide.
- Seek a Just Outcome Under the Circumstances – Finally, based on how you decide to proceed, you will want to rely on your lawyer to seek a just outcome on your behalf in light of all of the relevant circumstances at hand.
Your Property Rights Remain the Same in Utility Easement Cases
An entity that has the power to condemn follows the same procedure to acquire property as other condemnors, such as the State or Cities and Counties. The law regarding valuation of easements is similar to the law in valuing the acquisition of property in fee simple, or all of the ownership rights to a piece of property, like you would typically see in a road or highway acquisition. Every case is unique and depends on the type of property impacted and the type of easement. If you have been contacted about the acquisition of an easement on your property, contact Barron, Adler, Clough & Oddo, PLLC to discuss your circumstance and determine the next steps.