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Easements - Pse Wants a 290'x15' Electrical Utility Easement How Do I Determine Value

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irvineparrett

Junior Member
What is the name of your state (only U.S. law)? Washington Puget Sound Energy wants a 290'x15' electrical utility easement how do i determine value of the easement?
How I determined value of easement.
I determined the value of the affected property as a whole parcel (290’ x 15’ of road frontage). Price per square foot as per Pierce County Tax Assessors land value ($180,000 for 98446 sq. ft. parcel)
I then divided the total tax assessed value of the affected property parcel by the total number of square feet contained in the parcel to obtain a value for our property per square foot.
I calculated the square footage of the property affected by the easement (4,350 sq. ft. easement).
I finally multiplied the square footage of the easement by the per-square-foot value of the property to provide the tax assessed value of the easement ($ 1.82 per sq. ft).
They offered .53 cents per square foot. Are they fair? I also have a home on the property. Total value land with home approx. 320,000 should I calculate square footage with land and home?
 
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FarmerJ

Senior Member
The easement should not greatly affect the value of your property. I take it that this power line will service other customers ? Are they wanting to do underground service ? So did you do comparables for land value only of other property in your area to see what the current market is ?
 

154NH773

Senior Member
The easement should not greatly affect the value of your property.
Sorry, but I'd disagree with that.

The value is whatever you say it is. You are under no obligation to grant them an easement.
Your method of evaluation is as valid as anyone's.

You should consider the future value of your property and your ability to use the land. Most utility easements allow the utility company to come across the easement with vehicles and equipment, put up poles and support lines, and prevent you from planting trees or other shrubs that would block them or interfere with their lines or access. You could wind up with a High Voltage Transmission line on towers (and nobody wants to live under one of those). You will also be liable for taxes on that portion of your property, and perhaps may not be able to actually use it.

If you don't really care; then what would it cost them to run the lines another way. They probably wouldn't pay more than that amount, but why should you provide a cheap alternative for them? You can write the easement with whatever terms you want, so don't let them have unlimited or exclusive rights.

Do you need the money, or are you just trying to be a nice guy? I wouldn't grant anyone an easement across my property, but that's me...
 
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irvineparrett

Junior Member
It is overhead line 115kv

It is overhead line 115kv Transmission lines and will also encumber 15 foot wide road frontage for other property owners for miles. They told us they are going to use 60 - 70 foot poles.
Irvin Parrett
 

irvineparrett

Junior Member
Here is the contact language

I understand most of the contract, but I am having a problem or concern with #5 the indemnity clause (i'm not understanding it at all) and #7 Successors and Assigns (do they have the right to assign the easement with other utility companies and any else?). It is also a nonexclusive perpetual easement. What does inure mean inure to the benefit in clause #7


1. Purpose. Grantee shall have the right to use the Easement Area to construct operate, maintain, repair, replace, improve, remove, and enlarge one or more utility systems for purposes of transmission, distribution and sale of electricity. Such systems may include but are not limited to:
Overhead facilities: Poles, towers and other support structures with crossarms, braces, guys and anchors: electric transmission and distribution lines; fiber optic cable and other lines, cables and facilities for communications.
Following the initial construction of all or a portion of its systems, Grantee shall have the right of access to the Easement Area over and across the Property to enable Grantee to exercise its rights hereunder. Grantee shall compensate Grantor for any damage to the Property caused by the exercise of such right of access by Grantee.
2. Easement Area Clearing and Maintenance. Grantee shall have the right to cut, remove and dispose of any and all brush, trees or other vegetation in the Easement Area. Grantee shall also have the right to control, on a continuing basis and by any prudent and reasonable means, the establishment and growth of brush, trees or other vegetation in the easement area.
3. Trees Outside Easement Area. Grantee shall have the right to cut, trim remove and dispose of any trees located on the Property outside the easement area that could, in Grantees sole judgment, interfere with or create a hazard to Grantee’s systems. Grantee shall, prior to the exercise of such right, identify such trees and make a reasonable effort to give Grantor such prior notice when trees are cut, trimmed, removed or otherwise disposed of in response to emergency conditions:. Grantor shall be entitled to no compensation for trees cut, trimmed, removed or disposed of except for the actual market value of merchantable timber (if any) cut and removed from the Property by the Grantee.
4. Grantor’s use of Easement Area. Grantor reserves the right to use the easement area for any purpose not inconsistent with the rights herein granted, provided, however, Grantor shall not construct or maintain any buildings, structures or other objects on the Easement Area and Grantor shall do no blasting within 300 feet of Grantee’s facilities without Grantee’s prior written consent.
5. Indemnity. Grantee agrees to indemnify Grantor from and against liability incurred by Grantor as a result of Grantee’s negligence in the rights herein granted to Grantee, but nothing herein shall require the Grantee to Indemnify Grantor for that portion of any such liability attributable to the negligence of the Grantor or the negligence of others.
6. Abandonment. The rights herein granted shall continue until such time as Grantee ceases to use the Easement Area for a period of five (5) successive years, in which event, this easement shall terminate and all rights hereunder, and any improvements remaining in the Easement Area, shall be deemed to have occurred by reason of Grantee’s failure to initially install its systems on the Easement Area within any period of time from the date hereof.
7. Successors and Assigns. Grantee shall have the right to assign, apportion or otherwise transfer any or all of its rights, benefits, privileges, and interests arising in and under this easement. Without limiting the generality of the foregoing, the rights and obligations of the parties shall inure to the benefit of and be binding upon their respective successors and assigns.
 
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irvineparrett

Junior Member
Here is the contact language

I understand most of the contract, but I am having a problem or concern with #5 the indemnity clause (i'm not understanding it at all) and #7 Successors and Assigns (do they have the right to assign the easement with other utility companies and any else?) What does inure to the benefit mean in #7.


1. Purpose. Grantee shall have the right to use the Easement Area to construct operate, maintain, repair, replace, improve, remove, and enlarge one or more utility systems for purposes of transmission, distribution and sale of electricity. Such systems may include but are not limited to:
Overhead facilities: Poles, towers and other support structures with crossarms, braces, guys and anchors: electric transmission and distribution lines; fiber optic cable and other lines, cables and facilities for communications.
Following the initial construction of all or a portion of its systems, Grantee shall have the right of access to the Easement Area over and across the Property to enable Grantee to exercise its rights hereunder. Grantee shall compensate Grantor for any damage to the Property caused by the exercise of such right of access by Grantee.
2. Easement Area Clearing and Maintenance. Grantee shall have the right to cut, remove and dispose of any and all brush, trees or other vegetation in the Easement Area. Grantee shall also have the right to control, on a continuing basis and by any prudent and reasonable means, the establishment and growth of brush, trees or other vegetation in the easement area.
3. Trees Outside Easement Area. Grantee shall have the right to cut, trim remove and dispose of any trees located on the Property outside the easement area that could, in Grantees sole judgment, interfere with or create a hazard to Grantee’s systems. Grantee shall, prior to the exercise of such right, identify such trees and make a reasonable effort to give Grantor such prior notice when trees are cut, trimmed, removed or otherwise disposed of in response to emergency conditions:. Grantor shall be entitled to no compensation for trees cut, trimmed, removed or disposed of except for the actual market value of merchantable timber (if any) cut and removed from the Property by the Grantee.
4. Grantor’s use of Easement Area. Grantor reserves the right to use the easement area for any purpose not inconsistent with the rights herein granted, provided, however, Grantor shall not construct or maintain any buildings, structures or other objects on the Easement Area and Grantor shall do no blasting within 300 feet of Grantee’s facilities without Grantee’s prior written consent.
5. Indemnity. Grantee agrees to indemnify Grantor from and against liability incurred by Grantor as a result of Grantee’s negligence in the rights herein granted to Grantee, but nothing herein shall require the Grantee to Indemnify Grantor for that portion of any such liability attributable to the negligence of the Grantor or the negligence of others.
6. Abandonment. The rights herein granted shall continue until such time as Grantee ceases to use the Easement Area for a period of five (5) successive years, in which event, this easement shall terminate and all rights hereunder, and any improvements remaining in the Easement Area, shall be deemed to have occurred by reason of Grantee’s failure to initially install its systems on the Easement Area within any period of time from the date hereof.
7. Successors and Assigns. Grantee shall have the right to assign, apportion or otherwise transfer any or all of its rights, benefits, privileges, and interests arising in and under this easement. Without limiting the generality of the foregoing, the rights and obligations of the parties shall inure to the benefit of and be binding upon their respective successors and assigns.
 

154NH773

Senior Member
I am having a problem or concern with #5 the indemnity clause (i'm not understanding it at all) and #7
I would advise having a lawyer explain the ramifications of the language to you.

You do realize that #3 allows them to cut down ANY tree outside the easement that THEY deem a threat to their lines.

5. Indemnity. Grantee agrees to indemnify Grantor from and against liability incurred by Grantor as a result of Grantee’s negligence in the rights herein granted to Grantee, but nothing herein shall require the Grantee to Indemnify Grantor for that portion of any such liability attributable to the negligence of the Grantor or the negligence of others.
Sort of says they won't sue you, or will pay if you are sued because of something they did; but not always. Have a lawyer explain to you.
7. Successors and Assigns. Grantee shall have the right to assign, apportion or otherwise transfer any or all of its rights, benefits, privileges, and interests arising in and under this easement. Without limiting the generality of the foregoing, the rights and obligations of the parties shall inure to the benefit of and be binding upon their respective successors and assigns.
Would allow them to give the same rights you granted them to anyone else. It appears that clause #1 would allow them almost any rights ("Such systems may include but are not limited to" would allow them almost anything), so regardless of what they tell you their intentions are, they can put up towers and as many lines of almost any type that they want. They can sell the rights to telephone and cable companies, etc. These easements are written so as to allow them almost unlimited rights for the future.

Be careful, and if you agree to go ahead (remember; you don't have to) make sure you get a good price for the easement. You are giving up a lot.

Also; you don't have to accept the easement language they have written. I wanted my underground transformer on my property, and re-wrote the easement to exclude its use by other neighbors, and allowed access to my property only to service MY electricity, not my neighbors. (Payback to my neighbors)
 
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irvineparrett

Junior Member
I changed the language is this acceptable?

1. Purpose. Grantee shall have the right to use the Easement Area to construct operate, maintain, repair, replace, improve, remove, enlarge removed enlarge one or more utility systems for purposes of transmission, distribution and sale of electricity. Such systems may include but are not limited to:
Overhead facilities: Poles, towers and other support structures with crossarms, braces, guys and anchors: electric transmission and distribution lines; cables and facilities for communications fiber optic and other communication systems shall be for intra company use only.
Following the initial construction of all or a portion of its systems, Grantee shall have the right of access to the Easement Area over and across the Property to enable Grantee to exercise its rights hereunder. Grantee shall compensate Grantor for any damage to the Property caused by the exercise of such right of access by Grantee.
2. Easement Area Clearing and Maintenance. Grantee shall have the right to cut, remove and dispose of any and all brush, trees or other vegetation in the Easement Area. Grantee shall also have the right to control, on a continuing basis and by any prudent and reasonable means, the establishment and growth of brush, trees or other vegetation in the easement area.
3. Trees Outside Easement Area. Grantee shall have the right to cut, trim remove and dispose of any trees located on the Property outside the easement area that could, in Grantees sole judgment, interfere with or create a hazard to Grantee’s systems. Grantee shall, prior to the exercise of such right, identify such trees and make a reasonable effort to give Grantor such prior notice when trees are cut, trimmed, removed or otherwise disposed of in response to emergency conditions:. Grantor shall be entitled to no compensation for trees cut, trimmed, removed or disposed of except for the actual market value of merchantable timber (if any) cut and removed from the Property by the Grantee.
4. Grantor’s use of Easement Area. Grantor reserves the right to use the easement area for any purpose not inconsistent with the rights herein granted, provided, however, Grantor shall not construct or maintain any buildings, structures or other objects on the Easement Area and Grantor shall do no blasting within 300 feet of Grantee’s facilities without Grantee’s prior written consent.
5. Indemnity. Grantee agrees to indemnify Grantor from and against liability incurred by Grantor as a result of Grantee’s negligence in the rights herein granted to Grantee. Removed part of this line.
6. Abandonment. The rights herein granted shall continue until such time as Grantee ceases to use the Easement Area for a period of five (5) successive years, in which event, this easement shall terminate and all rights hereunder, and any improvements remaining in the Easement Area, shall be deemed to have occurred by reason of Grantee’s failure to initially install its systems on the Easement Area within any period of time from the date hereof.
7. Successors and Assigns. The rights herein granted are assignable to the Successors of the Grantee only.
Thanks for all the help
 
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