Pipelines Archives

Impact of Pipelines on Property

As new and additional pipeline projects are undertaken in Pennsylvania, many property owners are being confronted with a situation with which they have little to no prior experience. This often takes the form of a pipeline company representative approaching the property owner seeking to purchase an easement across the property owner's land. During this process, the land agents will often claim that the pipeline will have no or only a minimal impact on the property and its value. We caution property owners to be wary of these statements and representations. Experience has reflected that pipelines can impact property values in a number of ways. One possible way is that a pipeline can lower the fair market value of a property. In some cases, the pipeline can have a significant impact on the property's value. Second, the pipeline can limit the property owner in utilizing the property in the future. By way of example, if the easement were to cut through the center of a vacant lot, it may render the lot no longer usable for development. In addition, if a pipeline runs through the center of a back yard, it may prevent the property owner from adding an addition to an existing residence and/or installing a pool. Third, pipelines can potentially limit the number of individuals who may be willing to purchase the property in the future. On this basis, we suggest that property owners carefully consider any offer which is made to them by a pipeline company before accepting the offer.

Sunoco May Have Plans for a Third Pipeline

During a recent public meeting, Sunoco released information about a possible plan for a third pipeline. As many are aware, Sunoco has been utilizing a pipeline which was placed into service in the mid 1930's. More recently, Sunoco started the process to construct a second pipeline referred to as Mariner East II. Sunoco is still in the process of acquiring the necessary right of ways for the Mariner East II Project. During the recent meeting, however, Sunoco advised that they are considering building two parallel pipelines as part of the Mariner East II Project while the original plans only contemplated one line as part of the project. That second line is the third line which is presently under consideration. Based on the most recent information of which we are aware, the third pipeline is not yet confirmed. Rather, Sunoco advised that, as of the meeting, they were still in the process of determining whether they have sufficient commitments to warrant the installation of the third line. Nevertheless, as a third pipeline is a possibility, we caution property owners to be cognizant of the easement and right of way terms proposed to them by Sunoco. The terms of the easement agreement will dictate whether any additional compensation is due or required if the additional line is sought or placed.

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