Public Comment. Volume III - Montana Legislature

Crude Of1 & Petroleum Product
Pipelines in Montana
A Report to the
Montana Environmental Quality Council
March, 2000
Crude Oil and Petroleum Products Pipelines in
America
40% of U.S. energy needs provided by oil
97% of U.S. transportation fuels are crude
oil based
. 170,000 miles of pipelines bring crude oil to
refineries and deliver fuels throughout the
United States
525 billion gallons of crude oil and fuels are
pipeline transported annually
65% of all oil and fuels transportation is
handled by pipelines.
Citing a Pipeline and Use of Eminent Domain.
What is a Right-of- Way Easement that Pipelines
Use?
An easement is a negotiated agreement by which a
landowner grants permission to another party, such
as a pipeline company, to use part of the land for a
specific purpose. It is only a right to use the land -
less than full ownership - and is granted in return
for payment. It is important to know that with an
easement the landowner retains the title to the
land. In nearly all cases, buried pipelines do not
interfere with a landowner's ability to continue using
the land in the same manner as in the past.
How do Pipelines Obtain the Right-of- Way?
With respect to a permanent easement, pipeline
companies negotiate agreement terms and
conditions with landowners by signing an easement
document for a permanent right-of-way.
Landowners are compensated for this easement.
Landowners may also be paid for loss of certain
uses of the land during and after construction, loss
of any other resources, and any damage to the
property.
Obtaining a permanent (or perpetual) right-of-way
easement involves a process of good faith
negotiation on the part of the pipeline company and
the landowner. This means providing the
landowner with written information relating to the
pipeline route proposed for that property and
conducting meaningful meetings.to understand
landowner interests.
Compensation for the easement is determined.
Numerous attempts are made and documented on
the part of the parties to reach an agreement. The
amount of compensation for the easement is based
on fair market value set by local experts and at
local rates for similar type property, such as dry
land cultivation or grasslands.
Negotiation also takes place with respect to
compensation for temporary use of the land for
construction. This compensation includes damages
to crops, timber cuts, fences and gates and loss of
any other resources.
If no agreement with the landowner is reached, the
pipeline may acquire the easement under eminent
domain. This is a right given to the pipeline
Crude Oil & Petroleum
Product Pipelines in Montana
EQC Eminent Domain Study -1 71 -
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