What is a utility easement? An easement, generally, is a grant of specific rights to a specific entity on property. When a landowner grants an easement over their property, the recipient of the easement has the right to do what the easement permits within the designated area.
For example, an adjoining neighbor may want to access a public road by utilizing a driveway on another neighbor’s property. The adjoining neighbor can seek to acquire an access easement from the driveway’s owner to use their driveway for access purposes.
A utility easement is the same as an access easement, or any other easement, but instead of a neighbor getting the right to use a driveway, a utility company is generally getting the right to build and maintain a transmission line or pipeline.
Understanding Different Types of Utility Easements
Utility easements come in two main categories: public and private.
Public easements are granted to government entities or municipal utility providers, while private easements involve agreements between private landowners and entities.
Both types carry different implications for property owners and require careful consideration during negotiations.
Common Uses of Utility Easements
Though many people have never heard of a utility easement, they are quite common. Most homes have easements for utilities, such as water pipes, gas pipes, or electrical lines. Dubbed “distribution lines,” these types of utilities traditionally have little effect on property values and, in fact, usually bolster the value of properties because they signal that a property has access to certain utilities (water, electrical, gas).
One common question property owners ask is, “Can I refuse a utility easement?” While you technically have the right to refuse, utility companies may have legal recourse through eminent domain if the easement is deemed necessary for public benefit. However, this doesn’t mean you should accept their first offer—you have the right to negotiate terms and seek fair compensation.
The type of line being built matters. While distribution line easements have little effect on property value, “transmission line” easements certainly can. Transmission lines, be they powerlines or pipelines, are used for moving energy resources across large swaths of land.
They are typically much larger than smaller distribution lines. If you have ever driven across rural land, chances are you have seen large powerlines crisscrossing farmland. These are transmission lines that are generally built on easements across private landowners’ land and can have a much different impact on property value than distribution lines.
When energy companies purchase easements from landowners, the easements will inherently limit the landowner’s ability to utilize the easement area, and some easements are more restrictive than others. Utility easement restrictions for the landowner vary depending on the type and purpose of the easement. Common restrictions include:
- No permanent structures within the easement area
- Limited use and access of the easement area by the landowner
- Limited farming of easement area
- Height restrictions for trees and temporary structures
- Specific setback requirements
The larger the project, generally, the more restrictive the easement is for the landowner. The Keystone Pipeline or Dakota Access Pipeline are examples of large transmission projects with restrictive easements. Be they powerlines or pipelines, these huge transmission projects require wider easements with more rights.
Consequently, these easements can have a significant impact on the value of the property they encumber.
Beyond the complexity of the easements, transmission pipes and powerlines have intrinsic effects on property values. Many landowners do not want to deal with whatever challenges these structures may pose to the property owner.
Accordingly, the value of these properties encumbered by transmission improvements may decrease due to the stigma associated with them. A landowner is entitled to the diminution in his or her entire property value caused by the introduction of the transmission line and should secure this value damage as part of its easement agreement with the utility company.
How Can I Tell if There’s an Easement On My Property?
A landowner, unsure of whether an easement exists on their property, can discover existing easements by:
- Reviewing county records
- Obtaining a professional survey
- Consulting your title insurance documents
- Contacting local utility companies
Easement Wording
An easement grants a permanent, or temporary, right to use a part of your property. Once a perpetual or permanent easement is obtained, it will continue indefinitely and will not expire if property ownership is transferred. A temporary easement will expire based on the specified term stated in the easement.
Because easements are recorded, a willing buyer of your property is very likely to learn of it and may desire to pay less for your property to account for the easement. Easements are rarely extinguished from a property’s title–even when the easement is unused for long periods of time. Unless state law, or the easement itself, requires extinguishment of the easement, it is very unlikely that an easement holder will relinquish easement rights and/or abandon their easement.
Find Utility Easement Projects in Your Area
Stay informed about utility easement projects affecting your community. Our database at Sever Walker Padgitt tracks active eminent domain cases across the country.
Quick Search Options:
- Browse projects near you
- Search by State to find local developments
- View recent updates on major utility expansions
- Access project maps for visual representation
Don’t see your project listed? Our database is continuously updated as new utility easement projects are initiated.
Understanding your rights starts with staying informed about utility developments in your community. Our tracking system helps property owners prepare for potential easement negotiations before they begin.
How Utility Easements Are Established
Understanding how utility easements are established is crucial for property owners. Typically, they are created through:
- Voluntary agreements between property owners and utility companies
- Subdivision requirements during development
- Eminent domain proceedings
- Historical use and prescriptive rights
Rights and Responsibilities of Property Owners
Property owners should understand their rights and responsibilities when dealing with utility easements:
- Right to just compensation for property use
- Right to negotiate terms and conditions
- Right to reject the initial offer of compensation and easement terms
- Right to challenge improper use
- Ability to seek legal representation
This means, of course, that the specific rights granted within the easement document need to be carefully crafted. Most utility easements are permanent and are recorded with the county recorder’s office—meaning whether you sell your property, your kids inherit it, or the bank seizes it, the easement will be there unless relinquished voluntarily or as a matter of law. Like diamonds, permanent easements are forever. It is imperative that a landowner ensures an easement’s language is precisely drafted to avoid getting taken advantage of by the utility company.
Utility Easement Compensation
A utility easement can cause physical damage to your land and can decrease its value. In most cases, the utility company will pay you a single lump-sum payment to compensate you for the easement.
It is critical that you properly assess the potential losses caused by the easement to ensure that you receive the full, just compensation you deserve as a landowner under the law.
When determining compensation for an easement on a property, several factors are considered:
- Market value of the affected land
- Potential decrease in overall property value
- Loss of use or restrictions on use
- Impact on future development potential
- Temporary construction damages
- Ongoing maintenance considerations
Compensation is only one part of the equation when dealing with a utility easement. As discussed, an easement can serve any purpose. It can:
- Provide a landowner with access
- Temporarily grant a department of transportation the right to assemble its equipment
- Grant virtually any entity the right to do anything
Contact Sever Walker Padgitt for Answers About Utility Easement
Now that you know more about utility easements, it’s time to learn about your rights as a landowner. Contact Sever Walker Padgitt or call us at (888) 318-3761 for answers to all of your questions and help in challenging an unjust eminent domain case. Find an attorney in your state today.
