March 28, 2024

ISU department: Landowner should know their rights

As Texas-based Energy Transfer Partners continues to contact Iowa landowners in the 18 counties potentially affected by the construction of the Dakota Access crude oil pipeline, people are guaranteed to have questions.

The Iowa State University Center for Agricultural Law and Taxation provides information to landowners about the voluntary easement process and their rights under the Iowa Code. CALT Staff Attorney Kristine Tidgren hosts a one-hour webinar on the department’s website explaining Iowa’s eminent domain law with a focus on the pending Dakota Access project.

In a June 4 interview with the Jasper County Tribune, Tidgren touched on a few issues she advises Iowa landowners to consider before signing on the dotted line with ETP.

• Liability Issues. Property owners could be assuming more liability for their land with new people entering, exiting and working during the construction of the pipeline. Make sure that is addressed in the easement contract.

• Contract meets Iowa Code. Determine the land restoration standards granted in the contract are as robust as the rights provided under Iowa law. CALT staff urge landowners to make sure they are not signing away ETP’s responsibility to proper reclamation, restoration of soil, damage to structures and other property during the pipeline construction process. Do not grant a larger land easement to a private company than is necessary for the project scope.

• Less predictable damages. Think about other damages that could be incurred during construction. Tidgren said the construction of a project like the Dakota Access pipeline could prevent access to farm fields during critical planting and/or harvesting times. This could cause a loss of income for farmers who have granted easements, and the CALT recommends those damages are stipulated in any contract.

• Think long-term. What will be the value of the property over time? CALT recommends landowners research the value of their land both with and without a crude oil pipeline running underneath.

“When you’re thinking about the money that’s been offered to you … it may sound good on a per-acre basis, but how does having the pipeline on one portion of your property affect the value of the entire parcel?” Tidgren said. “If you have a 500 acre parcel, and you have the pipeline running through two acres, how does that affect the marketability and value of the larger parcel?”

• Land values vary. Tidgren said finical compensation in the Dakota Access easements appears to be “quite negotiable,” so an average price offered by Dakota Access is hard to pinpoint. It’s based on the parcel’s corn suitability rating (CSR). Get the best price possible and don’t feel the need to take the first offer.