Advise the utility to consider selecting an economical route from the standpoint of replacement right of way purchase.

While many utilities have staff experienced in evaluating utility right of way, others may have limited experience in purchasing real property interests. Although the decision to condemn or negotiate lies with the utility, adequate justification must be provided for the values paid in negotiation.

“The utility shall determine and make a written valuation of the replacement right of way that it acquires in order to justify amounts paid for such right of way. This written valuation shall be accomplished prior to negotiation for acquisition.”

- 23CFR 645.111(2)(b)

The valuation must be approved by TxDOT prior to negotiation. TxDOT may require an appraisal if the valuation is not adequately justified. The utility may offer more than the valuation or appraisal; however, the utility will only be reimbursed for the eligible cost.

TxDOT has no legal authority to acquire replacement right of way for a utility, but may participate in the eligible costs associated with the utility’s acquisition of replacement right of way.

Replacement right of way acquired by the utility before project release will not be eligible for reimbursement. After release, the cost of acquiring utility replacement right of way will be eligible for reimbursement if it is necessary and supported by the adjustment. The utility should avoid acquiring replacement right of way before approval of the utility agreement and proposed plan of adjustment by the District or Division. For more information, see the section on Replacement Right of Way Costs in Chapter 7, .

When replacement right of way is acquired and federal funds are used to cover some portion of the cost, the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (the Uniform Act), and amendments thereto, apply to the acquisition. In these instances, the right of way personnel should be contacted for assistance.