May 2025, Vol. 252, No. 5
Features
Why Thousands of Idle Pipelines Remain Buried Across the U.S.—and the Case for Taking Them Up
By David Howell, SR/WA, Pipeline Equities-Houston
(P&GJ) — At Pipeline Equities, we are in the business of taking up pipelines. Our work – pipeline recycling and reclamation – began long before environmental cleanup became a national priority. Over the past 40 years, we’ve salvaged more than 42 million feet of pipe, in all sizes and across all kinds of terrain. In many ways, we helped define the industry.
Our approach is straightforward: we purchase pipelines in the ground for salvage and reuse. That work has naturally led us into related areas – pipeline appraisals, easement damage assessments, and, often enough, expert witness assignments in litigation involving pipeline value and salvage potential.
Forever Easements
Roughly 90% of private pipeline easements in the United States are granted in perpetuity. These agreements typically have no termination clause and remain in effect indefinitely – regardless of whether the pipeline is active or idle. Unless the pipeline operator formally releases the easement, the landowner has no legal grounds to reclaim it. In effect, the landowner has agreed to a permanent right-of-way.
The remaining ten percent tend to involve larger landowners – those with extensive acreage and access to legal counsel – who negotiate terms with specific provisions for easement termination. These cases often involve easements stretching thousands of feet or more, particularly on ranches and larger parcels.
Federal, Native Lands
Federal lands under the jurisdiction of agencies such as the Bureau of Land Management or Department of the Interior are typically leased for set terms, ranging from five to 20 years. These leases must be renewed on schedule, and the same applies to most tribal lands, which are administered by the Bureau of Indian Affairs and local tribal councils. There are more than four hundred tribal councils across the United States, representing most Indigenous nations.
In my experience as an expert witness in tribal lease litigation, I’ve seen numerous instances where company right-of-way departments overlook the expiration of Indian leases. Many assume that once a pipeline is out of use or appears abandoned, ownership reverts to the landowner.
This is not the case. In most jurisdictions, “abandoned” simply means the line is not currently in service; ownership of the pipe and the easement typically remains with the pipeline operator of record.
As a result, hundreds of thousands of tons of steel remain buried across the country, with little or no path toward reclamation.
Removal Obligations
The Trans-Alaska Pipeline, operated by Alyeska, stands out as a rare example where removal obligations were built into the original agreement. The line, much of which runs above ground, crosses both federal and tribal lands – territory that is leased, not owned. Under the terms of the lease, the pipeline must be taken up and the corridor restored once operations cease. To prepare for this, tariffs and fees have been collected over the years to fund the eventual dismantling.
When that time comes, more than 700 miles of 48-inch pipe – an estimated three and a half million tons of steel – will be recovered. The total cost, including takedown and sale of the material, is projected to be around $950 million. While the job is large, the plan is clear, and the responsibility is accounted for.
By contrast, the Colonial Pipeline system presents a different picture. Spanning thousands of miles from Texas to the Northeast, most of Colonial’s infrastructure lies on private land. Fewer than ten percent of its easements include any requirement for removal. Once a segment is taken out of service, it typically remains in place with no formal obligation to reclaim the steel or restore the right-of-way.
The difference between these two pipelines – one planned for recovery, the other largely overlooked – illustrates the range of outcomes that play out across the country.
There are few regulations that address the removal of pipelines. Agencies such as the Federal Energy Regulatory Commission (FERC) and various state authorities may provide guidelines for disconnecting a pipeline, clearing product, and removing signs or equipment. But the lines themselves – and the easements they occupy – remain in place, owned by the easement holder or pipeline company.
Most agreements do not contain specific language about taking up the pipeline when service ends. The industry uses terms like “idled,” “abandoned in place,” or “out-of-service,” but in most cases, the pipe remains where it is, and no further action is taken.
There are several reasons pipeline owners avoid taking up out-of-service lines:
Latent Liability – Operators seek to avoid potential issues such as exposure to hydrocarbon residue, asbestos, or naturally occurring radioactive material (NORM) during removal. There are also risks of personnel injury during removal.
Damage Risk – Taking up a line may affect nearby crops, livestock, or structures.
Lost Records – Many operators no longer have reliable alignment data. Over decades of mergers and asset transfers, records are often lost, destroyed, or never digitized. Often, no one knows where the alignments sheets are.
No Revenue – Taking up lines is not a profit-generating activity. Few departments are willing to allocate time or budget to it.
Speculative Value – Some operators keep idle pipelines in place with the hope that future market conditions or technologies will make the line valuable again. The line might be repurposed for hydrogen transport, fiber optics, compressed air, or other emerging uses. Until then, it's held indefinitely as a potential asset.
Shared Corridors – Many abandoned lines run alongside active ones owned by other companies. Taking up one line may disrupt others, and companies do not want the added responsibility or risk of monitoring a deconstruction job.
Costs of Inaction
One of the less discussed aspects of idle or out-of-service pipelines is the cost of leaving them in place. These lines may no longer carry product, but they continue to generate work – and expense.
Ad valorem and local taxes may still be assessed on the pipeline, even though it’s been inactive for years. Right-of-way departments are still required to locate and mark them during One Call responses. Legal departments are often called on to draft releases or negotiate access when construction or development intersects with the easement.
In many organizations, these responsibilities are spread across departments. One group may be absorbing ongoing tax costs, while another handles operational logistics – each unaware that the same idle line is costing the company in multiple ways.
Recovered Steel
At the end of the day, pipeline steel is still steel – tubular, versatile, and in demand. Salvaged pipe is often used in fencing, piling, foundations, flagpoles, or industrial structures. In some cases, pipe is shipped abroad for use in drainage or water systems.
Several years ago, we took up an 80-year-old crude line composed of 10-inch seamless pipe. Approximately 400,000 feet were shipped to South America for use as a slurry line. Another 500,000 feet went to Southeast Asia to be reused as water line. In the early 2000s, thousands of tons of salvaged pipe were sent to China during its construction boom and used in foundational work for roads and infrastructure.
Pipe is a reliable source of high-grade scrap. Once reclaimed and cleaned, it goes right back into steel production – sometimes even becoming new pipe.
Author: David Howell is managing partner of Pipeline Equities. A national pipeline recovery, appraiser, and consultant in pipeline repurposing. Visit us at www.pipelineequities.com
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