This natural gas pipeline impact study has been conducted at the request of the Interstate Natural Gas Association of America Foundation (INGAA Foundation). In order to determine the impact of natural gas pipelines on real estate, several objectives were established through research of case law, professional literature, and articles in the popular press. These objectives established the framework on which the case studies were selected and the research was conducted.
Four separate geographically diverse areas were selected for the case studies. These areas include a suburban area traversed by ...
Four separate geographically diverse areas were selected for the case studies. These areas include a suburban area traversed by one natural gas pipeline, a suburban area traversed by multiple natural gas and products pipelines, a rural area traversed by one natural gas pipeline, and a commercial area traversed by a natural gas and one products pipeline. The data for each case study was examined from many different perspectives to identify possible price and non-price impacts resulting from location along the route of a natural gas pipeline. The analyses were conducted utilizing paired sale, descriptive statistics and linear regression analysis.
Conclusions were developed based on the cumulative results of the four case studies. It was determined that there is no significant impact on the sales price of properties located along natural gas pipelines in the areas of study. It was further determined that neither the size of a pipeline (diameter) nor the product carried by a pipeline has any significant impact on sales price.
It was also concluded that there is no discernable impact on demand for properties located along natural gas pipelines in the locations studied. Furthermore, the existence of a pipeline did not impede development of the surrounding properties in any location researched.
The results of the case studies also revealed that the existence of a pipeline has no significant impact on development decisions such as lot size or type of improvement constructed. Furthermore, the presence of a pipeline did not impact any specific property type more or less severely than other property types in the areas studied.
Finally, it was concluded that it is very likely the results and conclusions of this study are transferable to other market situations involving natural gas pipelines in other regions of the country.