What Landowners Need to Know about Intrusions on Surface Use 1 Big - - PowerPoint PPT Presentation

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What Landowners Need to Know about Intrusions on Surface Use

Big Picture

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• Phase 1: Company or agency study
• Engineering, environmental, etc.
• Phase 2: Routing
• Phase 3: Land acquisition (condemnation)
• Phase 4: Construction

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Phase 2: Routing

Routing Process

Transmission/Pipelines/Roads

• Regulated Formal Process

– Powerline Company Files CCN – Heard by SOAH/PUC

• Non-regulated Informal Process

– O&G Company/Water Corp/Railroad/TxDOT – Not regulated by RRC/TCEQ/OAG

Powerline Critical Fact!

“RECOMMENDED ROUTE” MAY NOT MEAN MUCH

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Powerlines in SOAH

• Intervene or Comment?
• If Intervening, Provide Written Direct Testimony
• Critical Difference: Protestors are Not Parties and

Comments Are Not Evidence

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Roles and Strategies

• f the Team

Landowners: Alliances Lawyers: Legal Experts: Routing

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How Experts Can Help You

• Analyze Routes and Segments
• Recommend a Route
• Support or Rebut Routes Chosen By Routing

Agency

• Provide Testimony at Hearing

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Critical Conclusion! “INTERVENORS” INFLUENCE ROUTE SELECTION

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Big Picture

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• Phase 1: Company study
• Phase 2: Routing
• Phase 3: Land acquisition (condemnation)
• Phase 4: Construction

Steps in Eminent Domain/Condemnation

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• Phase 1: The Call, Visit or Letters from Landman
• Phase 2: Negotiating Your Terms and Compensation
• Phase 3: Special Commissioners’ Hearing
• Phase 4: District Court/County Court at Law Appeal

Phase 1: The Letters

• “Bona fide offer” required
• Condemnor’s “initial offer”
• Generally, includes a 30-day

deadline

• Law requires a written

appraisal and 14-day “final

• ffer” before any hearing
• Critical time to have consulted

with an attorney

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Phase 2: Negotiating Your Terms & Compensation

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• Company landman makes the

written offer

• First offer typically “low”
• Offer and terms are

negotiable

• Landman and/or company

lawyers discuss price, location, and terms

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Market Value - Easements/Fee Take

• Total compensation =

– Value “Before” minus Value “After”

• Value of the “Take” (permanent easement or fee)
• “Remainder” damage, if any, is compensable

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Landowner’s Appraiser’s COMPENSATION SUMMARY

Market value of Land: $1,025,000 Market Value of Improvements: $515,000 Market Value of Whole Property Before Taking: $1,540,000 Market Value of Whole Property After Taking: $1,220,753 Compensation Damages (Loss in Value): $319,247 Oncor Easement Acquisition: $9,901 Temporary Construction Easement: $3,430 20% Damages to the Remainder: $305,916 COMPENSATION: $319,247

Utility’s Appraisal $36,622 vs Landowner's Appraisal $319,247

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Phase 3: Special Commissioners

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• If no agreement, company files

condemnation lawsuit

• Purpose of Special Commissioners is to

assess damages and “award” a dollar amount to landowner

• Braun & Gresham continues to

negotiate

• Company can start construction after

deposit of award

Phase 4: Appeal

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• Objection to award
• Formal courtroom jury

trial

• Decides price
• Expensive
• Should be used as last

resort

General Negotiations

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• Price of land taken
• Other damages
• Details of routes
• Location of facilities
• Temporary agreements

– e.g., Roads/Easements

• Permanent easements

Easement Negotiations

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• Restore/protect land
• Access points
• Roads
• Improvements
• Fences and gates
• Liability protections
• Landowner’s future use
• Limits on others’ use

Pipeline Specific Negotiations

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• Non-exclusivity
• Limitation of number of lines
• Limitation of diameter of pipe
• Limitation of easement width
• Limitation of surface facilities
• Depth of pipe
• Surface restoration measures
• Indemnity protection
• Termination clause
• Land/ranch specifics
• Miscellaneous provisions

– No warranty, dispute resolution, etc.

Bad Old Easements

• “Blanket” easements
• Undefined ingress and egress locations
• Undefined width of permanent easement
• Undefined number and sizes of pipelines
• Undefined number of transmission line circuits, etc
• Undefined use of additional temporary work space
• Payment for new lines at 1930’s prices -- or worse!!

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Exceptions to Title Policy

• Buyer should request the documents and carefully

review the language before closing

• Without a careful review by buyer and his/her

attorney, the buyer man not realize the extent of the burden of a bad old easement`

• Company may decide to “maintain” an old

easement and remove all trees/growth in a 50-100 foot strip of land -- or lay additional lines anywhere on the property

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QUESTIONS?

• Do transmission lines/pipelines negatively/roads affect property

values?

• Should the seller tell the buyer:

– an electric utility company has notified the seller the property may be impacted by the routing of a new transmission line? – a pipeline company has notified seller about the possible routing of a new pipeline across the seller’s property? – TxDOT, etc. has notified seller about the possible routing of a new road near or across the seller’s property?

• Sale of property that is under threat of potential condemnation?

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Q & A

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Patrick L. Reznik

Attorney, Counselor, Mediator Braun & Gresham, PLLC preznik@braungresham.com www.braungresham.com

A family of companies proudly serving the owners of rural land.