Pipeline Easement Agreement: What to Look For

Pipeline companies present easement agreements as standard documents, implying there is little room for negotiation and that signing quickly is normal. Neither of these things is true. A pipeline easement is one of the most significant legal agreements you will ever sign. It permanently restricts your land, affects its value, and binds every future owner of your property. Here is what to examine before you sign.

Easement Width and Area

The easement agreement will specify the width of the permanent easement strip — typically 30 to 50 feet for most pipelines, sometimes wider for larger-diameter lines. It will also specify the width of any temporary construction easement, which may be much wider (50 to 100 feet or more) to allow for equipment and material staging. Examine:

• Whether the permanent easement width is the minimum necessary for safe operation, or has been padded for the company’s convenience
• Whether the temporary construction easement boundaries are clearly defined with a hard expiration date
• Whether there are provisions for additional easement area if the company wants to add another pipeline alongside the first

What Products Can Be Transported

One of the most important and overlooked clauses in any pipeline easement is the product restriction — or lack of one. A poorly written easement may allow the company to transport any product through the pipeline, including products that were not disclosed when the easement was negotiated. Make sure the agreement specifies:

• Exactly what product or products can be transported (natural gas, crude oil, refined products, CO₂, water, etc.)
• Whether the company can change the product being transported without your consent
• Whether the pipeline can be used for purposes beyond the original stated purpose

Depth Requirements

The agreement should specify the minimum burial depth of the pipeline. Standard burial depth is 36 to 48 inches in agricultural areas, but some companies initially propose shallower depths. Shallow burial interferes with deep tillage equipment and creates risks. Negotiate for a minimum depth of 48 inches in all cultivated areas, with deeper burial at road crossings and drainage ditches.

Drainage Tile Provisions

This is one of the most critical and often most poorly written sections of any pipeline easement affecting agricultural land. The company will inevitably cut through tile drainage systems during installation. The agreement must address:

• Joint inspection and documentation of all tile drainage systems before construction begins
• Specific restoration methods and materials (not just “restore to original condition”)
• A minimum warranty period after restoration (at least two years to observe drainage performance through multiple wet seasons)
• Provisions for ongoing maintenance and repair of drainage issues caused by the pipeline
• Compensation for crop losses caused by drainage disruption during and after construction

Topsoil Separation and Restoration

Proper topsoil handling during pipeline installation is essential to preserving long-term productivity. The agreement should specify:

• That topsoil must be stripped and stockpiled separately from subsoil before excavation
• Minimum stockpile separation distance to prevent mixing
• That topsoil must be replaced as the top layer when backfilling
• Soil compaction testing after restoration and required remediation to specified standards
• Post-construction monitoring requirements and compensation for documented productivity loss

Assignment Rights

Who can the company assign or sell this easement to? Many pipeline easement agreements allow the company to assign the easement to any successor or assignee without your consent. This means the easement could end up owned by a company you have never heard of, operating a product you did not anticipate, with no recourse on your part. Negotiate for:

• Restrictions on assignment without your written consent, or at minimum
• A provision that the easement can only be assigned to a qualified pipeline operator that assumes all obligations under the original agreement

Indemnification and Liability

What happens if the pipeline leaks, ruptures, or otherwise damages your property? The indemnification clause determines who is responsible. A company-friendly clause may try to shift liability to you for activities on your property that “interfere with” the pipeline. Negotiate for:

• Broad indemnification of you and your heirs from any claims arising from the pipeline’s existence and operation
• Explicit company responsibility for all costs of cleanup, remediation, and restoration following any release or spill
• Environmental indemnification including soil and groundwater contamination

Abandonment Provisions

What happens to the pipeline if the company abandons it, goes bankrupt, or the project is discontinued? This is a long-term risk that most easement agreements handle poorly. The agreement should specify:

• That the company is responsible for removing the pipeline upon abandonment, not just plugging and leaving it in place
• A timeframe for removal after abandonment is declared
• Financial assurance (such as a bond or escrow) to fund removal if the company is no longer solvent
• Clear definition of what constitutes “abandonment” and what triggers removal obligations

Surface Use Restrictions After Restoration

Once the pipeline is installed, what can you do on the easement strip? Typical restrictions include prohibitions on deep-rooted trees or shrubs, buildings, or structures. But some agreements go further, restricting the type of crops you can plant or requiring advance notice before any tillage deeper than a certain depth. Know exactly what you are agreeing to.

The Most Important Thing to Remember

Pipeline company representatives are not on your side. They are trained to move quickly and to present the easement as non-negotiable. That is a negotiating tactic, not a legal reality. Every single clause in a pipeline easement is negotiable — and the difference between an initial offer and a negotiated agreement can be substantial, both in payment and in protective terms.

Do not sign anything without independent review. Contact a right-of-way professional before responding to any pipeline easement offer.

General information only — not legal advice. Consult a qualified attorney for advice specific to your situation.