Androvett Legal Media and Marketing
Client_News
| Charles Fiscus of Shackelford Melton & McKinley quoted in the Fort Worth Star-Telegram Pipeline companies’ right to condemn land may be questioned |
| June 22, 2008 |
When a gas drilling company wants a piece of land for a pipeline, its representative usually shows up at the owner's door with a letter from the Texas Railroad Commission, stating that the company has a right to take the land.
Pipeline companies can condemn land because they're considered either utility companies, which serve the public the same as Atmos or TXU, or "common carriers," a legal term that means they carry oil or gas for anyone.
Major gas companies have formed their own pipeline divisions as they seek routes for gathering pipelines to serve the Barnett Shale. These divisions have the power to condemn land.
However, several local lawyers specializing in pipeline and condemnation matters question whether these divisions should have that power because these pipelines typically serve only one company.
Read Full Story (registration required)
Charles Fiscus, a Dallas attorney who also works on condemnation issues, agreed with Wilson. Even if a pipeline serves only one company, it might still be a common carrier, the same way a trucking company might still be a common carrier even though all its trucks are leased to one customer, he said.
"Until there is a determination that a common carrier means you must offer your services to the public and you cannot contract your services to one person, I think there's an ability to do that," he said.
Wilson said Chesapeake could probably ship other producers' gas, "provided there's capacity."
Pipeline power
Pipeline companies have wider condemnation power than a city or an electric company.
When a city wants to condemn land, it is required to have the property appraised.
When an electric company wants to condemn land, it has to file its route with the Public Utility Commission and submit alternate routes, Sodd said.
A pipeline company can condemn land without taking either of those steps, Sodd said.
The Legislature passed a law in 2007 that would have given landowners more rights in all types of condemnation, but Gov. Rick Perry vetoed it. The law would have required companies or governments to make a "bona fide offer" - an offer close to fair market value - for the land before beginning condemnation proceedings.
MIKE LEE, 817-390-7539
Send this page to a friend