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Pipeline Law

How is compensation calculated for land affected by pipelines?

Compensation is typically based on market value assessments conducted by independent experts. It covers the value of the land easement, crop loss, and any devaluation of the remaining property. We help landowners negotiate fair terms or assist pipeline companies in structuring standard compensation packages.

Can I build on my land if a pipeline runs through it?

Strict safety zones apply to major pipelines (like BTC or SCP), prohibiting construction, tree planting, or deep excavation within a certain distance. These restrictions are registered as encumbrances. Violating them can lead to forced demolition of structures and legal penalties.

What happens if I accidentally damage a pipeline?

Third-party damage involves serious liability. The responsible party must pay for repairs, environmental cleanup, and potentially for the business interruption (loss of transit). Criminal charges may also apply if negligence is proven. Legal representation is crucial in such incidents.

What is a Host Government Agreement (HGA)?

An HGA is an international treaty between the government and the pipeline consortium (e.g., BP). It sets the legal framework, tax regime, and security obligations for strategic projects. These agreements often override local laws, making specialized legal knowledge essential for any related dispute.

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Pipeline law in Georgia is a field of strategic importance, as the country serves as an energy corridor between Europe and Asia. Major pipelines such as Baku-Tbilisi-Ceyhan (BTC) and the South Caucasus Pipeline (SCP) pass through here. This legal field regulates the construction, operation, safety, and environmental aspects of pipelines. It also concerns land rights — easements and compensation for landowners whose plots the pipeline crosses. Legal services are needed for pipeline companies (BP, GOGC), as well as landowners and contractors involved in infrastructure maintenance. Special attention is paid to international agreements (Host Government Agreements) and transit regulations.

What Does Pipeline Legal Service Cover?

Our experts offer full legal support for pipeline projects:

  • Land Acquisition and Easement: Negotiations with landowners, concluding easement agreements, and managing compensation.
  • Safety Zones: Legal assurance of construction and activity restrictions in pipeline protection zones.
  • Environmental Permits: Environmental Impact Assessment (EIA) of the pipeline route and construction permits.
  • Incident Management: Legal response to oil or gas leaks, damage compensation, and remediation.
  • Transit Agreements: Analysis and disputes regarding international oil and gas transit agreements.
  • Infrastructure Protection: Supporting prosecution in cases of illegal damage or theft of pipeline infrastructure.

Common Scenarios and Needs

Landowners often protest the amount of compensation or restrictions imposed on their plot due to the pipeline passing through (e.g., prohibition of planting orchards or erecting buildings). Pipeline operators face issues with "Third Party Damage" cases, where unauthorized works damage the pipe. Environmental disputes are also relevant if a leak contaminates a river or soil.

Georgian Legislation and Regulations

The field is regulated by the "Law of Georgia on Oil and Gas" and special international agreements (HGAs), which have the force of law upon ratification by the Parliament of Georgia. These agreements often grant pipeline projects exclusive rights and tax exemptions. Safety norms are outlined in government technical regulations on the protection zones of main pipelines.

The Process: How a Specialist Works

When working on land issues, the lawyer checks the Public Registry data and prepares the easement agreement. If the owner refuses, the lawyer manages the expropriation (taking for necessary public need) process in court. During an incident, the lawyer works with ecologists and the technical team to assess damage and communicate with the regulator (Oil and Gas Agency).

Why Legal.ge?

Pipeline law requires a synthesis of knowledge in land, environmental, and international energy law. Legal.ge gives you access to lawyers experienced in mega-projects like BP pipelines. Specialists on our platform will help you in the legal management of complex infrastructure projects and resolving land disputes. Trust energy experts on Legal.ge.

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