EASEMENT EVALUATION

THE MOST COMMON FORM OF EASEMENT ACQUIRED IN THE GAS UTILITY BUSINESS IS THE LOCAL DISTRIBUTION MAIN EASEMENT. THE MAIN USUALLY RUNS ALONG THE EDGE OF A PUBLIC ROAD OR STREET AND PROVIDES LOCAL GAS SERVICE. THE PROPER EVALUATION OF THIS TYPE OF EASEMENT IS DISCUSSED. THE OBLIGATIONS OF PUBLIC UTILITIES ARE LISTED AS: (1) TO CUSTOMERS WHO PAY FOR UTILITY SERVICE, (2) TO STOCKHOLDERS TO PRODUCE A REASONABLE RETURN ON MONEY INVESTED, (3) TO THE PUBLIC TO AVOID ANY UNNECESSARY EXPENDITURE OF PUBLIC FUNDS, AND (4) TO ACCOMPLISH THE JOB IN A PROPER MANNER THAT WILL ENHANCE THE COMPANY IMAGE. IN ACQUIRING EASEMENTS FOR THE DISTRIBUTION MAIN, THE SAFEST, LEAST COSTLY AND MOST PERMANENT AND CONVENIENT LOCATION MUST BE SELECTED. THE LAW HOLDS THAT THE VALUE OF AN EASEMENT IS THE AMOUNT OF DIMINUTION IN VALUE WHICH THE LAND SUFFERS BY REASON OF THE EASEMENT OR THE FORMULA: THE FAIR CASH MARKET VALUE OF THE LAND BEFORE SUBJECTED TO THE EASEMENT, LESS THE FAIR CASH MARKET VALUE AFTER SUBJECTED TO THE EASEMENT, EQUALS THE FAIR CASH MARKET VALUE OF THE EASEMENT. APPLICATIONS OF THIS FORMULA ARE DISCUSSED WITH THE REALIZATION THAT EACH EASEMENT MUST BE CONSIDERED AND EVALUATED SEPARATELY ON THE VALUE BASIS WITH THE KNOWLEDGE THAT OFTEN THE PRESENCE OF THE UTILITY INCREASES RATHER THAN DECREASES PROPERTY VALUES.

  • Availability:
  • Supplemental Notes:
    • Vol 11, No 3, PP 15-17, 1 PHOT
  • Authors:
    • Mcfadzean, J A
  • Publication Date: 1964-6

Media Info

  • Serial:
    • Right of Way
    • Publisher: International Right of Way Association
    • ISSN: 0035-5275

Subject/Index Terms

Filing Info

  • Accession Number: 00238409
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 16 1994 12:00AM