Siting and Right of Way for Interstate Pipelines

Before construction can begin, the pipeline company must file a detailed project plan with FERC, which will approve the pipeline location and construction.  Then, the company obtains legal rights to the land along the proposed route, called a right-of-way, from landowners

Right-of-way Acquisition and Landowners

The cornerstone of the right-of-way acquisition process is the negotiation of an easement agreement between the pipeline company and the landowner. This agreement covers key issues such as compensation, restoration of the land and restrictions on future use of the land.  A right-of-way agent from the pipeline company contacts each affected landowner along the route to discuss the project and negotiate an easement agreement.  

INGAA is committed to leading an industry that builds and maintains strong positive relationships with landowners. To that end, INGAA has endorsed a document entitled “America’s Natural Gas Transporters’ Commitment to Landowners.”

In addition to the permanent easement required to operate and maintain a pipeline after it is constructed, the company also will require a temporary easement during construction.  A permanent easement typically is about 50 feet wide and a temporary easement typically will range between 50 to 75 additional feet depending on the size of pipeline; larger pipelines require the use of bigger equipment and more room to operate.  The amount of workspace required is also dependent on the type of terrain that will be crossed and any special construction requirements.

A landowner is normally compensated a fair market value for the permanent easement, which typically allows the landowner continued use and enjoyment of their property with some limitations.  These restrictions typically prohibit structures and trees within the easement in order to preserve safe access of maintenance equipment when necessary and to allow for unimpeded aerial inspection of the pipeline system.

A landowner is generally compensated at a lower rate for the use of the temporary construction easement, because this land eventually reverts back to the landowner after construction for their full use and enjoyment without any restrictions.

Additionally, landowners are compensated for any damages/losses they may incur as a result of the construction across their property, such as loss of crop revenues.

Eminent Domain
Sometimes, a landowner and a pipeline company may not be able to reach agreement on the terms of an easement.  If this happens and FERC has determined that there is a public need for the pipeline, FERC will grant the pipeline company access to the land under eminent domain (the right of the government to take private land for public use).  This same right typically is afforded under state and sometimes federal law to electric and natural gas utilities, telecommunications companies, railroads and the transportation infrastructure in the U.S.  Under the law governing interstate natural gas pipelines, the Natural Gas Act, this is a federal grant of eminent domain.  State or federal courts then supervise the fair compensation and treatment of the landowner.