Replies to This Discussion

Permalink Reply by Larry Livengood on August 23, 2012 at 2:17pm

 Negotiating compensation between the property owner and the government (or pipeline operators) is the first step. No one wants to use eminent domain unless property owners aren’t negotiating in good faith. That’s why the government has the power of eminent domain — to ensure that public projects move forward, even when property owners hold out.

Once those two magic words, “eminent domain,” are said, everyone’s hands are tied. The entity initiating takings proceedings, the pipeline operator, must pay just compensation. Just compensation is based on the market value of the property. 

But the property owner’s hands are tied, too, because the only recourse is a legal appeal. The bottom line is when eminent domain is invoked, negotiations outside of the court system are over. This is the real problem with the shale gas in Pennsylvania.

In Pennsylvania, Title 26 of the state code allows public utility companies to use eminent domain. Public utility companies can then delegate the takings power to pipeline operators. Yes, you read that correctly: Private pipeline operators can be granted the governmental power of eminent domain.

Permalink Reply by craig on August 23, 2012 at 8:22pm

Yes, you read that correctly: Private pipeline operators can be granted the governmental power of eminent domain.

While this is true, I have not heard of this being done with anything but transmission lines. 

Permalink Reply by Larry Livengood on August 24, 2012 at 2:55am

In February, a story surfaced up in Laporte (100 miles north of Harrisburg) about a pipeline operator using eminent domain to gain access, or easement, to 150 properties in Bradford, Lycoming and Sullivan counties.

It hasn't been done here, yet.  Pipelines are just starting and the routes are just being laid out and ROWs negotiated.  When the final push comes to get the lines in and there are some holdouts, that is when we might see this used.  

I believe we are a few years away from any serious confrontations in our area.

Permalink Reply by John on August 24, 2012 at 4:12am

Penn State Publication on Pipeline Right-of-Ways

From the Penn State (a pretty reliable source, I think. Much better than rumors);

"In Pennsylvania, eminent domain or right of condemnation generally only applies to interstate transmission lines, or lines moving gas longer distances between two or more states. In other states the power of eminent domain is given to all intrastate gathering and distribution pipeline companies.

Individual gathering lines (pipelines running between well sites, compressor units, and metering stations) are not subject to eminent domain in Pennsylvania, and the pipeline operator must negotiate easements with each individual landowner along the pipeline route.

A provision in Pennsylvania law does allow operators of a “public utility” to use eminent domain to secure pipeline easements. In the event of an eminent domain proceeding, the landowner will be compensated by the court or regulatory authority at a fair market value for the easement."

 

From what I have been told, even by the landmen negotiating the pipeline easements, CHK and others do not qualify as utilities and don't want to either, because then they would have to be regulated by the Public Utility Commission.

Permalink Reply by mlb on August 24, 2012 at 4:25am

This is correct.  I asked the pipeline company I've been talking to about eminent domain and he cited the same thing..that is they are not a utility company and therefore cannot claim eminent domain and therefore have to zig and zag to get a pipeline put in as some property owners simply say no way.

Permalink Reply by mkf on August 23, 2012 at 10:24pm

I worked for an attorney many years ago who specialized in eminent domain cases.  In one particular case, he managed to negotiate a price for the owner that was 4 times what the company was originally offering.  This case was about putting a road through his property.  When you get hit with eminent domain, you think you don't have choices anymore.  You don't on where the road will got, but you do on the amount you receive.  I recommend an attorney for anyone caught in eminent domain.

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