CREZ AND THE TEXAS LANDOWNER: A Q&A

In the next two years, Texas landowners may be required to house massive transmission lines on their land. Plateau's Ken Thigpen spoke with Taline Manassian, an attorney with Braun & Associates, about these lines and their impact on landowners.

Taline, what is happening with transmission lines in Texas right now?

Probably the most significant thing is the routing and construction of CREZ lines. CREZ stands for "Competitive Renewable Energy Zones." A CREZ is an area in West Texas or the Panhandle identified for the construction of wind energy facilities. CREZ lines are the transmission lines that will carry the renewable energy from CREZ facilities to the population centers of the state. The Public Utility Commission has been working with utility companies and landowners to decide where these lines should go.

What do CREZ lines mean for Texas landowners?

After the Commission decides where a line will be routed, the utility begins condemning land along the chosen path. Condemnation is the formal process by which the utility can take an easement on property owned by private landowners for the purpose of building and maintaining a CREZ line.

How does condemnation work?

The utility will ask for the landowner's permission to conduct a survey of the affected land. Within a few months of the survey, the landowner will receive an offer from the utility to purchase an easement at some price. The landowner then can negotiate the price and other issues.

What other issues might a landowner negotiate?

That depends on the property. The landowner can negotiate the routing of the line on his or her property or the location of the towers. If a property has a spectacular view, the landowner may want the utility to route the line so that the view is unaffected or less affected. A landowner also may negotiate access points, gates and locks, or roads that may be needed for the line. Some landowners want restoration, such as replanting of grasses or trees. In the negotiation phase, anything is possible.

Is the language of the easement document negotiable?

Absolutely. Certain points should be negotiated. Perhaps the most important is the scope of the permissions granted. The easement should be narrow in the rights it gives the utility. The utility's initial draft might authorize it to build the proposed CREZ line and future lines, including pipelines, telecommunication lines or other structures. It is important for the landowner that the easement authorize only the construction of the line that the utility is authorized to build. If a pipeline or something else is authorized in the future, the landowner should be paid a second time for a second easement.

What if the landowner and the utility do not agree on the language, the price or other points?

If they are not able to agree on a negotiated sale of the easement, the utility can start formal condemnation proceedings in Commissioner's Court. The utility and the landowner then present evidence on what they think the land is worth, and a three-person panel decides how much the landowner should be paid for the easement. If either party is unhappy with the panel's decision, it can appeal the decision to district court.

Though court is available, often it is better for the landowner to negotiate a resolution. Court can cost tens of thousands of dollars. Also, once the utility files a formal proceeding, the utility is largely unmotivated to discuss anything but price. During the negotiation phase, the utility often is willing to discuss routing, access points, location of structures, restoration or other things that benefit the landowner. In the formal proceeding, that motivation is gone, and those issues tend to be off the table. Also, the utility can start construction even while an appeal of the Commissioner's Court decision is pending.

What suggestions do you have for a landowner facing condemnation?

Create a wish list of what the utility could do to lessen the burden of the line. Consider hiring a lawyer to help negotiate, particularly the easement language. The easement affects a landowner's ability to sell and binds future owners, so it is important that the landowner understand exactly what the document does. Also, share the costs of these proceedings with neighbors. It can be expensive to hire an appraiser or a lawyer, but if landowners share costs, the costs become more manageable.

Once a landowner learns his property is to be condemned, is there anything the landowner can do to avoid condemnation?

Probably not. The way to avoid condemnation is to participate in the Public Utility Commission proceeding that decides where the line goes. If a landowner does not participate and receives a condemnation notice, what remains is to negotiate an arrangement that will minimize the impact of the line. It becomes about protecting the landowner and the land to the greatest extent possible.

Learn more about condemnation on the Braun & Associates website.

CREZ lines are the transmission lines that will carry the renewable energy from CREZ facilities to the population centers of the state. The Public Utility Commission has been working with utility companies and landowners to decide where these lines should go.