Compensation Considerations

A utility easement is a specific right to a legally described parcel of land that has been, or can be, recorded in the Real Property Records of the county.
In some situations, a property interest may not be possessed by a utility, but eligibility for State cost participation may be appropriate to compensate for the required adjustment. Compensation consideration may be appropriate for a railroad license agreement in favor of a utility predating a public right of way, or a joint occupancy agreement between two separate utilities (typically occupying poles) if the primary utility (typically pole owner) holds a property interest.
Occasionally, a utility will occupy, by statutory authority, areas covered by the property rights of another entity. This does not entitle the utility to retain any compensable right or to purchase replacement rights if acquisition of the area becomes necessary for a transportation project. However, the utility is entitled to reimbursement of a compensable cost to adjust its facilities on a one-time basis.
If questions arise regarding the status of rights claimed by a utility, that utility is responsible for documentation of these rights. TxDOT reviews property rights claimed by the utility to determine if a compensation consideration or a property right exists before making an agreement to adjust the utility’s facilities.
For a utility agreement assembly to be a candidate for approval, the utility’s compensation consideration must be clearly documented and supported by verifiable evidence, such as a recorded deed, easement, or lease. In situations where evidence of property interest is inadequate to support compensability, compensation consideration issues must be resolved before District approval of the utility agreement assembly.
The District may request pre-approval of the compensation consideration claim in writing. The request may include submission of completed affidavits, form , as appropriate, to support the property interest claim. To utilize the affidavit validation of property interest(s) there must be one (1) affidavit from the utility owner,
as well as
one (1) affidavit from a disinterested party
or
a property owner. A ROW Attorney will review the District’s request and reply with comments.
License agreements with a railroad that document a compensation consideration for a utility must have been executed
before
the highway facility was constructed. Otherwise, no compensation consideration can be acknowledged.
When municipally owned utilities are located in a city street where no previous adjustment has been performed and later becomes part of the State Highway System, a current project requiring adjustment of those municipally owned utilities may be deemed reimbursable by the State.