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Help RE: Distance of Home to High Pressure Pipeline Easement

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Elizabeth50

Freshman Member
Joined
Jul 17, 2005
Professional Status
Certified Residential Appraiser
State
Minnesota
I need clarification on this HUD 4000.1 Handbook statement regarding underground liquid, high pressure pipeline easements. I have a property that extends into the easement by 50'. The structure is located 200' from that easement. The way I'm interpreting the Handbook, it doesn't clarify whether there is an acceptable distance from the pipeline easement to the house/structure. Since the subject's site extends into the easement, is it even able to get an FHA loan? Has anyone had this situation? I appreciate the input.

Here's the 4000.1 Statement:

"The Appraiser must identify if the dwelling or related property improvement is near high-pressure gas or liquid petroleum pipelines or other volatile and explosive products, both aboveground and subsurface. The Appraiser must determine and report the marketability of the Property based on this analysis. The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the Property is not located more than 10 feet from the nearest boundary of the pipeline Easement."
 
It was fairly clear until the last phrase. I would not interpret it, I would require HUD to clarify it, or include and assumption and disclaimer.
 
I talked with the author of this part of the HUD policy some time back. It was explained that the 10' distance relates to the adjacent/abutting (neighbor) with a pipeline or well. If on the neighbor it must be 10 feet from the subject property line. Since the pipeline is on the subject property, it would not be eligible. Still shaking my head.
 
I talked with the author of this part of the HUD policy some time back. It was explained that the 10' distance relates to the adjacent/abutting (neighbor) with a pipeline or well. If on the neighbor it must be 10 feet from the subject property line. Since the pipeline is on the subject property, it would not be eligible. Still shaking my head.
Thirty years from now, appraisers will be having the same discussion and the handbook will remain as it it were translated from Chinese.
 
We had one of those go off some years back in a subdivision 6 miles from my house. A high-pressure jet of flames going up 700 feet into the air (according to news reports). Even from that distance, it sounded like a freight train rolling by next door. It was late at night, however, I hopped in my car and drove down to rubberneck the situation like an idiot. Pretty impressive. One of my friends owned a house across the street but quite a ways from the rupture, and the flames got so hot that it melted the frame of his aluminum storm door into a puddle on the front porch, I believe he told me that the glass stayed intact. Unfortunately, one of the occupants of a home closer was a 16-year-old girl who had just gotten out of the Lubbock burn unit from a car accident about a month prior, and she burned to death trying to escape. Sad situation. It was an old gas line that was put in before World War II that just rusted out and gave way, and they immediately rerouted it around that subdivision. "10 feet" is just some arbitrary figure with no basis in reality. 100 feet is not even close to being far enough away from one of those if there's a problem. Something to think about if you live near one.

 
We had one of those go off some years back in a subdivision 6 miles from my house. A high-pressure jet of flames going up 700 feet into the air (according to news reports). Even from that distance, it sounded like a freight train rolling by next door. It was late at night, however, I hopped in my car and drove down to rubberneck the situation like an idiot. Pretty impressive. One of my friends owned a house across the street but quite a ways from the rupture, and the flames got so hot that it melted the frame of his aluminum storm door into a puddle on the front porch, I believe he told me that the glass stayed intact. Unfortunately, one of the occupants of a home closer was a 16-year-old girl who had just gotten out of the Lubbock burn unit from a car accident about a month prior, and she burned to death trying to escape. Sad situation. It was an old gas line that was put in before World War II that just rusted out and gave way, and they immediately rerouted it around that subdivision. "10 feet" is just some arbitrary figure with no basis in reality. 100 feet is not even close to being far enough away from one of those if there's a problem. Something to think about if you live near one.

I was involved in a case in the Sissonville area outside the state's capitol. One of three natural gas lines, the smallest one, ruptured and caused a fire that destroyed multiple homes and melted the Interstate. Vinyl siding and paint on cars were melted thousands of feet away. The hole created by the explosion was several hundred feet wide and about 20-30 feet deep. Thankfully, nobody died.

Sissonville Explosion

Sissonville Explosion
 
Government and quasi government rules and regulations are rarely clear.
 
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