Thursday
Apr012010

Can pipeline companies acquire easements on public property?

Texas law allows pipeline companies to acquire easements on private property.  In that circumstance, it is important for land owners to consult a lawyer to obtain maximum compensation.  But what if the pipeline company wants to obtain an easement on public property through eminent domain?  The Dallas Morning News features this issue in highlighting a dispute between two north Texas cities and pipeline companies:

While the power of eminent domain is usually associated with government bodies, other entities - such as electric and telephone companies - have also been granted this authority because they provide a service for the public.

In Texas, many pipeline companies are considered public utilities with eminent domain power. Of the 34 pipeline companies in the Texas Pipeline Association, more than half are public utilities and all have some public utility assets, said executive director Patrick Nugent.

While condemnation lawsuits involving private property owners are not uncommon, "I'm not familiar with any litigation filed between a pipeline and a municipality," said Nugent.

He said he had not heard about the Flower Mound and Haltom City cases but speculated that they would be closely watched by the gas industry.

For municipalities, the legal battle is over sovereign immunity and the right to protect public property from unwanted encroachment.

 TEXAS LAND CONDEMNATION EMINENT DOMAIN LAWYERS