Occasionally the proposed right of way will cross land owned in fee by a utility or railroad company. Utility-owned fee property may be vacant or it may be used for a pipeline, power poles, etc., or for an equipment-building site. When TxDOT is acquiring a portion of the real property and the utility is retaining an interest in the property for its continued joint use, the part to be acquired may be valued by the "Carve Out Method" whereby the value of the interest in land necessary to accommodate the utility's facility is determined. The balance of the land not being used or that land which would normally not be used for the company’s facilities should be appraised like any other property.

Railroad parcels at crossings should be investigated to determine if the railroad possesses fee title or only an easement interest. If the railroad is active and owns the land in fee, only a license will be executed as specified in agreements between the railroad companies and TxDOT. This license is processed through TxDOT’s Traffic Operations Division. If the active railroad possesses only an easement interest, TxDOT must execute a license agreement with the railroad, and then, if possible, acquire the fee from the record title owner or adjacent landowner through the acquisition process. The railroad easement would be an encumbrance and considered in the appraised value of the parcel.

Where parallel right of way is being acquired from an active railroad, the railroad’s interest, whether fee or easement, should be acquired. Exceptions to acquiring fee title may be considered on a case-by-case basis for reasons such as environmental problems, economic, or other extenuating circumstances. Moreover, if there are lessee-owned improvements on railroad-owned land that are to be removed off of the state’s proposed right of way, these should also be acquired as discussed above in .

A railroad parcel may have an overlooked improvement, which shall be handled in the same manner as discussed above in .