patrick l. reznik 512-894-5426 · 1 patrick l. reznik 512-894-5426 [email protected]

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1 Patrick L. Reznik 512-894-5426 [email protected] www.braungresham.com

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Page 1: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

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Patrick L. Reznik 512-894-5426

[email protected] www.braungresham.com

Page 2: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

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LCRA/CTEC Blumenthal Substation

Saturday, September 6, 2014

Hill Country Alliance, Fredericksburg, TX

Page 3: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Big Picture

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•  Phase 1: Company study

•  Phase 2: Routing

•  Phase 3: Land acquisition (condemnation) •  Phase 4: Construction

Page 4: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

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Phase 2: Study;Routing

Page 5: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Routing Process Transmission/Pipelines

• Regulated Formal Process – Powerline Company Files CCN

– Heard by SOAH/PUC

• Non-transparent Process – O&G Company/Railroad/TxDOT?

– Private/Threat of Condemnation

Page 6: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

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Powerlines in SOAH

•  Intervene or Comment

•  If Intervening, Provide Written Direct Testimony

• Critical Difference: Protestors are Not Parties and Comments Are Not Evidence

Page 7: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

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Roles and Strategies of the Team

Landowners:

Alliances

Lawyers:

Legal

Experts:

Routing

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Page 10: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Big Picture

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•  Phase 1: Company study •  Phase 2: Routing •  Phase 3: Land acquisition (condemnation)

•  Phase 4: Construction

Page 11: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Steps in Eminent Domain/Condemnation

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•  Phase 1: The Call, Visit or Letters from Landman

•  Phase 2: Negotiating Your Terms and Compensation

•  Phase 3: Special Commissioners’ Hearing

•  Phase 4: District Court/County Court at Law Appeal

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Page 17: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

General Negotiations

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•  Price of land taken

•  Other damages

•  Details of routes

•  Location of structures

•  Temporary agreements –  e.g., Roads/Easements

•  Permanent easements

Page 18: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Easement Negotiations

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•  Restore/protect land

•  Access points

•  Roads •  Improvements

•  Fences and gates

•  Liability protections

•  Landowner’s future use

•  Limits on others’ use

Page 19: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Pipeline Specific Negotiations

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•  Non-exclusivity

•  Limitation of number of lines

•  Limitation of diameter of pipe

•  Limitation of easement width

•  Limitation of surface facilities

•  Depth of pipe

•  Surface restoration measures

•  Indemnity protection

•  Termination clause

•  Land/ranch specifics

•  Miscellaneous provisions –  No warranty, dispute resolution, etc.

Page 20: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Big Picture

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•  Phase 1: Company study •  Phase 2: Routing •  Phase 3: Land acquisition (condemnation) •  Phase 4: Construction

Page 21: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

QUESTIONS? •  Do transmission lines/pipelines negatively

affect property values?

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Page 22: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

QUESTIONS? •  Do transmission lines/pipelines negatively affect

property values? •  Should the seller tell the buyer an electric utility

company has notified the seller the property may be impacted by the routing of a new transmission line?

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Page 23: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

QUESTIONS? •  Do transmission lines/pipelines negatively affect

property values? •  Should the seller tell the buyer an electric utility

company has notified the seller the property may be impacted by the routing of a new transmission line?

•  Should the seller tell the buyer a pipeline company has notified seller about the possible routing of a new pipeline across the seller’s property?

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Page 24: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

QUESTIONS? •  Do transmission lines/pipelines negatively affect

property values? •  Should the seller tell the buyer an electric utility

company has notified the seller the property may be impacted by the routing of a new transmission line?

•  Should the seller tell the buyer a pipeline company has notified seller about the possible routing of a new pipeline across the seller’s property?

•  Should the seller disclose whether the property is under the threat of potential condemnation?

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Page 25: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Bad Old Easements •  Blanket easements by past failure to negotiate •  Undefined ingress and egress locations •  Undefined width of permanent easement •  Undefined number and sizes of pipelines •  Undefined number of transmission line circuits, etc •  Undefined use of additional temporary work space •  Payment for new lines at 1930’s prices -- or worse!!

–  Example $0.25/rod for each additional line (1 rod = 16.5 feet)

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Page 27: Patrick L. Reznik 512-894-5426 · 1 Patrick L. Reznik 512-894-5426 preznik@braungresham.com

Exceptions to Title Policy

•  Buyer should request the documents and carefully review the language before closing

•  Without a careful review by buyer and his/her attorney, the buyer man not realize the extent of the burden of a bad old easement`

•  Company may decide to “maintain” an old easement and remove all trees/growth in a 50-100 foot strip of land -- or lay additional lines anywhere on the property

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Patrick L. Reznik 512-894-5426

[email protected] www.braungresham.com