Land Use & Property Rights
Nevada Assembly Bill 408 would require that the Federal Government get state permission to use land within the state’s borders. It would also remove state water rights from the feds. It’s a big deal in a state where more than 80% of the land is federal. The impact to Area 51 is unknown at this time.
10 states are following Nevada’s lead.
Cliven Bundy made a name for himself in a stand off with the federal government over ranch lands in Nevada.
The Texas pipeline proptests over TransCanada Pipeline are enough for a movie. Here’s the story:
In tiny Eagle, Idaho, a business owner is fighting a blight designation for her property. The property has not, in the last 14 years, received a ticket or notice or fine.
An Idaho Redevelopment Corporation wants her property for a parking lot and is trying to use a blight designation to get it.
The business owner is a fighter. Sounding like 80s rock icons, she said, “My plans are still to continue to do what I think every American should do, fight for their property, fight for their right,” (to party, nay, property).
The Mayor of the City of New London wants to turn the property where the Kelo house stood to be turned into a park in honor of the residents whose homes were taken by eminent domain.
Kelo’s house was taken for a economic development project that never came to full fruition. The Kelp land is ripe for something.
The mayor’s campaign included these two issues:
The Institute of Justice is asking the US Supreme Court to reveiw a 4th Circuit Court of Appeals case that prohibits banners protesting the use of eminent domain. Why the hush-hush?
Moral of the Story: If you live in Norfolk, don’t put up signs in protest of eminent domain. There’s no talking about eminent domain while your property is being taken by eminent domain.
Soccer, the world’s version of football, necessitates stadiums for professional teams in the US. The District of Columbia’s professional soccer team, the D.C. United, is getting a new stadium once all the requisite land is acquired.
Negotiations between a landowner, who owns 2 acres of primo D.C. land, and the District aren’t going so well. At least not in terms of what matters- numbers.
As a result, the mayor keeps dropping hints that D.C. will use eminent domain. The mayor wisely hasn’t used the phrase “eminent domain.” Washington City Paper
Refreshing our recollections: Stadiums are economic drivers. Back in the day, Oakland, CA bandied about the idea of using eminent domain to keep the Raiders in Oakland because of the economic development boon the team meant for the city.
A California Appellate Court ruled that pre-condemantion access to private property did not include environmental and geological testing.
The land at issue was to be part of a multi-million dollar water delivery project , the Bay Delta Conservation Plan, to divert water from the Sacramento-San Joaquin Delta to Southern California.
National Federation of Independent Business attorneys have filed an amicus brief supporting the landowner and encouraging the California Supreme Court to affirm the denial of pre-condemantion access to private property.
A group of landowners, who filed suit against the State of Texas (TCEQ) for forcing them into a ground water district, were vindicated when the Groundwater district voted 5-0 to allow the landowners to live freely outside their groundwater district.
The landowners alleged in their law suit that they purchased land because it was not in a groundwater district and that private property rights should prevail. Lubbock Online
This Panhandle scenario should sound awfully familiar to Lege watchers. Rep. Isaac is fighting a similar fight in Central Texas and has filed 4 groundwater bills that would cease the use of eminent domain for unregulated groundwater lands. Texas Tribune
Refreshing our recollection from Energy & Water Subscribers:
On February 27, 2015, 20 Texans, owning 406 square miles of the Panhandle, sued the state for trying to force them to join a water conservation district. What are the landowner’s arguments:
How did we get to the point of suing the state?
On Monday the US Supreme Court heard a Texas case about confederate flag license plates, because fans of the Dukes of Hazards are moving to Texas in droves.
I haven’t seen any Klingon license plates in Austin- yet, but the Trekkie community is deeply divided and have retained counsel.
Seems weird to argue about license plates at the US Supreme Court, but in 1977 the US Supreme Court set forth the idea that a license plate is free speech on private property. The case was Wooley v. Maynard.
Private property rights are everywhere; in your DNA, license plates, and your land.
A headline to make make condemining entities cringe.
In 2006, Trenton took property by eminent domain. In 2011, Trenton and the property owners reached a settlement and city council approved the pay out. However, funds were never paid to the property owners.
HB 1863 by Rep. Paddie woud allow businesses to ask TXDOT for permission to trim or remove trees or vegetation:
Scenic Texas opposes the bill. Outdoor Advertising Association of Texas supports the bill.
This week Denbury filed to seek a rehearing over the appellate ruling that it is not a common carrier. It’s going to pop up via amendment between now and June 1st.
Why will this head to the Legislature? Because Denbury alleges that the current legal precendent, the appellate ruling, will have wide spread ramifications.
This common carrier fight has spanned 7 years. This complex legal tale includes:
More than 7 years ago Jefferson County landowners James E. Holland and David C. Holland, their business Texas Rice Land Partners and their tenant Mike Latta were approached by Denbury Offshore to conduct a survey on their land to build a gas pipeline through the Hollands’ property.
Landowners declined. Denbury claimed the pipeline would be for public use, exercising the right of eminent domain.
“In 2008, 172nd District Court Judge Donald Floyd ruled Denbury was a common carrier, and the Ninth Court court agreed”
The Texas Supreme Court Said No. The case was sent back to the court in Jefferson County.
The Jefferson County Court said yes to common carrier status.
Falconhead golf course, located in suburban sprawl outside of Austin, allegedly owes its water district $778,000. Naturally, legal action has ensued. The clincher is the Travis County Utility District is also considering siezure of the golf course’s property- in the form of its irrigation system.
Here’s what happened:
Siezing private property by a local governmental entity is not likely to end this legal drama.
No Eminent Domain for Economic Gain is a very popular refrain for property rights supporters. It’s as popular as A/C is in August in Austin.
In Nebraska it is a tag line for LB473, which prevents the use of eminent domain by foreign owned pipelines. Foreign owned pipelines would be permitted to negotiate for purchasing easements. Many states are cracking down on the use of eminent domain by private entities.
“egregious abuse of their power” Isaac for Texas
California has been building the infrastrcture for a high speed railway. Property aquisition has caused the following issues:
Half miles swaths of land near bus and train stops will be under constant threat of eminent domain under language in Connecticut’s state budget.
The eminent domain authority would reside with the state and could exclude the use of eminent domain by local governmental authorities.
Texans love their private property rights. It’s a toss up who loves Texas private property rights more: Libertarians? Republicans? Ranchers? Cattlemen?Farmers ?Wild Life enthusiasts?
This month’s issue of The Cattleman looks at easements for pipelines and power lines. They run through pros and cons, and here they are:
Pros of Pipelines and Power Lines Running Through Pastures:
The Cons of Pipelines and Power Lines Running Through Pastures:
Representative Isaac says removing eminent domain authority from a water district is the “saving grace.” he goes on to talk about the abuses of eminent domain authority by special districts. Texas Tribune
There are 100s, if not 1000s, of special districts in Texas. Texas Legislative Council has tracks and organizes these grants of eminent domain authority. The 2012 list of special districts with eminent domain authority is here.
New Mexico State Representative Matthew McQueen, D-Galisteo offered legislation to ban the use of eminent domain by private companies operating pipelines that would carry CO2.
This unique bill died in committee, but has sparked an activist movement that believes their property will be rezoned and their mortgages cancelled should a pipeline cross their land.
The California legislature has provided several mechanisms to build stadiums more quickly. One of these tools is to allow for eminent domain before environmental studies are completed.
The City of Sacramento and the Sacramento Kings have won 2 court cases upholding their ability to move quickly to build the new stadium.
This week, Sen. Kolkhorst’s SB 474 , received a hearing in Senate State Affairs. To commemorate the occasion, TPPF released a paper supporting her bill.
TPPF offers 4 Key Points on why reimbursing property owners for fees and costs of eminent domain litigation is good public policy:
High litigation costs prevent Texas property owners from vindicating their right to adequate compensation in court.
Reimbursing attorney fees would enable Texans to pursue their rights and blow the whistle on the misuse of eminent domain.
The Legislature should require courts to award legal fees to property owners if the final compensation for a condemned property is 10 percent or more greater than the initial offer. “
Mineral rights owners would be granted clear statutory authority to file suit against local governments when regulations limit use of their property under SB 809 by Van Taylor.
SB 809 carves out reasonable regulations that address:
LB 473 would prevent eminent domain for private companies. It’s a direct response to the Keystone XL Pipeline ruckus in Nebraska that has seen protests and court rulings thus far blocking eminent domain.
More than 11,000 people have signed a petition supporting this bill for Bold Nebraska, a group opposed to eminent domain for private pipelines.
Some Republicans in Iowa are openly speaking out about their opposition to former Gov. Rick Perry due to his appointment to the board of directors for Energy Transfer Partners.
Eminent domain and pipelines are front and center issues for Republicans in Iowa. DesMoinesBlog
Passing by a margin greater than 2:1, Littleton Colorado voters approved a measure to require that a property owner consent to eminent domain before eminent domain can be used.
Removing the ability to threaten eminent domain will likely make negotiations for property purchases more productive. Supporters say the goal is for citizens to do what is best for Littleton.
Iowa is polling on everything from potential Presidential candidates to private companies using eminent domain. Private companies using eminent domain is as popular in Iowa as it is in Texas.
Iowans like energy projects, but they strongly dislike these same companies using eminent domain.
An earnest supporter of property rights, Representative Will Metcalf filed HB 1889 that requires municipal or county approval before construction of the railway. Representative Metcalf is strongly opposed to taking private lands for private enterprise.
Metcalf’s opposition to high speed rail is noted at NoTexasHighSpeedRail & Texas Turf.
A second Nebraska judge has halted Keystone XL’s use of eminent domain. The second injunction is from York County and affects the sourthern portion of the pipeline. Omaha.Com WOWT NBC Laredo Morning Times
The above is a quote from USA Today this week examining the harsh opinions against eminent domain. Opinions become the most heated when eminent domain is used for ” taking of private lands for private enterprise,” quoting Representative Will Metcalf.
Reflecting on Kelo, the 2005 U.S. Supreme Court case permitting the use of eminent domain for economic development, its noted that not all public use projects move quickly.
In the case of Kelo, no construction in furtherance of the economic development project has occurred post-eminent domain.
Restricting the use of eminent domain is en vogue. Idaho’s Senate passed a bill to stop cities from using eminent domain to build hiking trails, bike trails, and greenways.
Idahoans love their green space. The state is almost entirely greenspace. Idahoans don’t love eminent domain. The bills author said this of eminent domain:
“eminent domain gives cities too much power.”
Texas looks to also stop cities from using eminent domain for trails and green space. SB 178 by Nichols
A vocal group at a transmission line public meeting echoed the refrain- no eminent domain for private gain. It rhymes which makes it good for protest marches.
A Houston Company is the target of this group of landowners. The company, Clean Line Energy Partners, is seeking the federal government’s buy-in to a wind energy project in Oklahoma & Arkansas. If the federal government gets involved, then the company gets eminent domain authority.
200 landowners showed up to a meeting. They were lock step in opinion. The highlights:
Project Supporters Say:
A Wichita Falls jury validated property owners’ right to collect reasonable damages when electric power lines lower the value of their land.
It boils down to a question of the value of the remainder of the land after every one agrees eminent domain is proper.
The electric provider offered the landowner $140,000 for an easement 1.7 miles long, that bisects the landowner’s property. The jury sided with the landowner appraiser who said the value is $393,165.
Texas Lawyer on Oncor Electric Delivery v. Clack
St. Louis Aldermen approve the use of eminent domain to retain an employer in St. Louis, the National Geospatial Intelligence Agency. The choice was retain 3,100 jobs or use eminent domain against 30 properties. The vote was 17:11.
National Geospatial Intelligence Agency has not indicated if it will stay in St. Louis or relocate, but eminent domain use has been decided to try to keep it in St. Louis.
Refreshing Recollection: Information Intelligence on the use of eminent domain to retain an employer.
Colorado & Texas are both proposing bills that would prohibit eminent domain for open space land. Woody Guthrie wasn’t being literal when he wrote, “This land is my land, this land is your land.”
In Colorado, the bill would prohibit a county from acquiring land for open space via eminent domain. It stems from mining property that a county acquired with eminent domain after some permitting issues. The acquisition of the land was at 4 times appraised value. The odds of fair comepnsation are high, but the author of the Colorado bill believes no property owner shold be forced to sell their land. 9 News AP
In Texas, Seantor Nichols’ SB 178 would prohibit all condeming entities from acquiring land for recreational purposes. His bill will cover parks, greenbelts, trails and the like.
In a 7 year legal tussle over whether Denbury is a common carrier, the 9th Court of Appeals ruled that Denbury is not a common carrier. Sounds innocuous, except that common carrier status grants Denbury, a private pipeline company, the power of eminent domain. Common carrier status comes with great power.
The Legislature tried to fix the common carrier issue in 2013, but an elegant point of order stopped it. In the summer of 2014, the Railroad Commission tried to fix it by rule making.
In 2014, the Texas Supreme Court established a standard for determining whether an entity is a common carrier. The common carrier test used by the 9th Court of Appeals is:
The legal wrangling began when Denbury representatives entered private property to survey land. Pre-condemnation surveying comes hand in hand with the power of eminent domain.
In the few last years, courts have struck down the ability to enter private property before eminent domain begins. Its a legal trend that has been protecting private property rights, even in left leaning states like California.
Fracking & private property rights. Eminent domain is triggered at many levels in fracking. It can br triggered by the pipeline moving the oil to refining. It can be triggered when new roads are needed. It could be inverse condemnation when a regulation, like a fracking ban, limits how people can use their land.
Senator Konnie Burton says cities should not be able to infringe on private property rights. Her SB 440 , prohibiting Denton-like fracking bans, protects private property rights while leaving the door open for cities to regulate where, when and how oil and gas production can occur.
Texas Municipal League Reaction to Senator Burton’s bill:
Refreshing Recollection from Information Intelligence:
HB 539 & HB 540: Local Fracking Bans Harm Texas Tax Coffers | Information Intelligence
Bill Filing: Ban Fracking Bans | Information Intelligence
12 North Texas Earthquakes on the Front Page, Impact to Fracking Legislation | Information Intelligence
Fracking Ban Meets Legislature. Bills Filed. Fight Begins, Again. | Information Intelligence
7 eminent domain bills have been filed to curb the powers of condemning entities. Activists are organized. The games are set to begin.
The playing field favors their success. Property Rights is a tenant of Republicans and all Texans. Republicans control every facet of Texas government.
In the last 7 days, these media outlets have focused on Texas eminent domain reform:
A judge in Nebraska today issued an injunction against the use of eminent domain for Keystone Pipeline. KRIS TV US News & World Report
A quickly moving constitutional amendment in North Carolina makes it harder for condemning entities to take private property using eminent domain.
How does it increase the burden on condemning entities? By limiting eminent domain to public uses- roads, court houses, schools, and prohibiting eminent domain for projects that do not have a clear public use.
Its a proposal also beloved by private property rights proponents in Texas. WNCN via AP
In the last year, opposition to eminent domain has turned more vocal and more public. Opponents have:
This week we have “”Death of Democracy” march in Virginia. Death of democracy occurred because:
HB 1220 by Laubenberg establishes private property rights for a person’s DNA and RNA.
Without informed consent, DNA and RNA cannot be:
If DNA and RNA is collected, tested, or retained without informed consent, the Attorney General may seek injunctive relief and a civil penalty that is tied to profits. HB 1220
When eminent domain negotiations fail, the parties move to court. But, what happens when a court sides with a landowner and awards substantially more for their property?
If SB 474 passes, a land owner that prevails with an award that is 10% higher than the last negotiated offer can have their attorney fees paid by the condeming entity.
It’s loser pay for eminent domain and applies to local governments as well as private companies that use eminent domain.
Seizing business permits by eminent domain is new. Connecticut is doing it to solve a state transportation issue. The CT Department of Transportation seized permits from a private bus company to make way for a new public transportation project.
The private companies sued. The Court allowed eminent domain to be used for the permits relying on the the use of eminent domain in CT for facilities, and lumping the bus permits in with facilities.
A Republican Senator in CT is not thrilled. He wants to limit eminent domain to tangible property.
Put 800 people together, many of whom are conservative, and momentum builds to oppose a private entity from using eminent domain to build a new transportation network.
What don’t people like about private companies using eminent domain?
“I am not a happy camper,” said state Rep. Will Metcalf, R-Conroe, adding he is frustrated by the lack of transparency on the project. “They are moving forward and we need your help.
“I don’t believe private enterprise should have eminent domain power. In regard to the 10th Amendment, I talked a lot about this during my campaign; we are living it here today. Federal overreach, they are bypassing us at the state, the county, and that is not OK.”
Former Montgomery County Judge: ” one of the biggest threats to the county I have seen in years” It’s extreme, folks.
Precinct 2 Commissioner Charlie Riley: Determined to stop the project
Rep. Mark Keough vows to stop the project
County Commissioners passed a resolution opposing the project.
The 10th amendment is increasingly popular symbol of federal intrusion. It’s like a rally cry for conservatives. Montgomery County Courier
Flower Mound would like to acquire land to join two “business” thoroughfares. The land owner objected to eminent domain to join businesses & wants to negotiate an easement.
Controversy stirred and generated 400 Facebook & public comments over a weekend, such as: “This is a battle about the heart of Flower Mound.”
City Council pulled the agenda item. The City says it followed the letter of the law and has been negotiating with the land owner.
Rowlett has a new Sprouts store. People need to get to the new store. Rowlett is considering eminent domain to access to the new location. This translates to acquiring private property to help people get to more private property.
What’s the hiccup?
St. Louis is considering using eminent domain to retain a local employer, the National Geospatial Intelligence Agency.
The Supporters Say:
The Concerns:
A County in rural Pennsylvania is intervening to stop a pipeline that is proposed to cross private property. Amish are a strong stock. You don’t want to mess with them.
20 of 26 townships also seek to stop the pipeline project after hearing tales about the impact of eminent domain proceedings against century old farms & decreasing property values.
Rand Paul, The Senator from Kentucky, voted to protect private property rights and oppose Keystone XL according to the Lexington Herald Leader. A future 2016 campaign issue?
Empower Texas offers up a smorgasbord of eminent domain abuses by Tarrant Regional Water Board. The list:
One eminent domain bill is becoming a media darling: HB 565 by Burkett. The bill revokes eminent domain authority from a private toll company.
Here’s why Burkett says it is important:
Refreshing Recollection. Previously on Information Intelligence.
Eminent domain protests occur across the U.S.:
Eminent Domain is not popular. It’s not popular even when your state or city needs to grow.
Eminent Domain is like broccoli flavored cupcakes- no one is buying it. Stratford Star
Surfing is to Californians like guns are to Texans. You don’t mess with it. A California billionaire tried to block surfers from accessing killer waves off the coast of San Mateo County. It set off a fight.
The Californai Legislature, Courts, and now the California Lands Commission have all attempted to settle the disupted beach access.
The California Lands Commission is mulling over using eminent domain to seize the surfer paradise from the billionaire. In 77 years, the California Lands Commission hasn’t used its eminent domain power.
This isn’t just for Californians. Remember the post-hurricane beach access and property line disputes in Texas?
Bloomberg News via San Diego Source
Previously on Information Intelligence:
The California legislature sought to find middle ground over public beach access through a California billionaire’s property. The courts sided with the surfer’s right to beach access. The legislature sought the more peaceful resolution for the billionaire- negotiation. Governor Brown agreed and signed the bill. But if negotiation fails, eminent domain is back on the table. A billionaire wants to keep his beach private. Surfers want to surf.
Never ending circle between the courts and the legislature over private property rights. Happens in California. Happens in Texas. Private Property rights will always be a bone of contention. [San Francisco Chronicle]
Compensation is the hottest of hot topic in eminent domain. If eminent domain is a habanero pepper, compensation is a ghost pepper.
Compensation gets tricker when talking about business property or property on which profits are made. How do profits factor into compensation, is at all?
Virginia is tackling how to factor in profit into compensation by proposing legislation to:
SJR 9 by Van Taylor would move the ball toward legislative approval of rule making.
Sound far fetched? It’s not. Other states are doing it:
A quick, non-exhaustive, list of contentious Texas rule making issues:
The toll road by a private corporation all but dead, this bill is hailed as the final nail in the coffin. The Texas Turnpike Corporation is the only private toll road authority in the state, having authority through a grandfather provision. Texas Tribune
Previously On Information Intelligence: The Bill Filing
In 2014, a private tollroad corporation proposed new toll roads in North Texas. Town halls were held. Fire Marshals shut them down as too many people turned out against new toll roads. City councils in the proposed toll areas passed resolutions opposing the plans to use eminent domain.
Toll road opponents and private property rights supporters united.
The 2015 Legislature will consider HB 565, which will stop private toll authorities from exercising eminent domain. HB 565
Previously on Information Intelligence: The Project that Started it All, Toll Roads by a Private Corporation
A multi-million dollar courtroom drama over land value for the Sacramento Kings new stadium is brewing.
Land values are differing by $25 Million :
If the $25 Million gap in valuations wasn’t enough- the eminent domain process is further complicated by CALPERS being an investor in a segment of land. CALPERs values its land at $12.5 Million.
Under California Law, valuations are based as though there is no Kings arena being built. Trial is scheduled for April. Sacramento Bee
Now, we know why the Buffalo Bills support paying more for property in negotiations than going to court. Information Intelligence
The Buffalo Bills & Sacramento Kings both need new stadiums. Building new stadiums takes land. If negotiations fail, land is acquired via eminent domain. The Buffalo Bills prefer negotiations.
Buffalo would rather pay more in a neogtiation than use eminent domain, which leads to costly litigation.
There’s a list of professional sports stadiums that have used eminent domain, Texas makes the list:
The Buffalo News Sacramento Bee (The Kings also used eminent domain & are in litigation over compensation)
What does the North Carolina Tea Party Backed, Bipartisan Supported, Constitutional Amendment do?
It has passed the NC House for 3 sessions, but stumbles with a 3/5ths rule in the NC Senate. Carolina Journal Watauga Democrat
What’s the North Carolina Tea Party Saying:
Refreshing Recollection: TPPF has also called for prohibiting eminent domain except for public use. Information Intelligence
Texas Central Railway has clarified its website regarding eminent domain. The clarification was picked up by the Dallas Business Journal.
Texas Central Railway (TCR) stresses that eminent domain is a last resort after all voluntary options are exhausted.
TCR further offers this message on private property rights:
“The project is committed to respecting and honoring the private property rights of our fellow Texans. This reflects our personal values and simply makes good business sense. As such, the project is committed to negotiating and settling with landowners fairly and transparently and in a way that seeks ‘win-win’ solutions.”
Massachusetts State Rep. Stephen Kulik, D-Worthington filed HD 3168 would require:
Supporters Say: “The idea is to reimburse people for the taking, because eminent domain is for the public good, not private profit. It’s one thing if it’s for domestic use, and another if it’s for export.”
In an effort to keep utilities off private lands for surveying, bills in Virginia look to reign in the ability to survey within eminent domain powers.
Democrats are lining up to defend the utilities right to access private lands. Republicans are lining up on the other side.
Republicans also want utilities with eminent domain authority subject to open records. Watchdog.org
Information Intelligence subscribers will remember a court in California blocked pre-eminent domain surveying. InformedIntel.com
A list of why eminent domain is necessary is not something that occurs with frequency. A law professor lists reasons why eminent domain is necessary in Detroit:
Refreshing recollection: There has been an FBI investigation into land speculation in right of way purchases in North Texas. Information Intelligence
Billboards and the City of Houston have a long history. Like a love affair that thrives on disagreements. The love lasts, but it is a roller coaster.
New movement in this relationship. The City & 3 billboard companies (Outfront Media, SignAd & JGI) are in talks to address what the city calls, billboard blight. The bargaining chip offered by the CIty:
The Houston Chronicle goes on to talk about bill board statistics in Houston:
Providing great material for 2015 bills in Texas, The Nebraska Supreme Court, making reference to Denbury, issued an opinion on the constitutionality of a pipeline certification. Read More: Information Intelligence
The Court said we don’t like it, but that pesky super majority threshold to declare the statute unconstitutional isn’t met, so it’s not officially unconstitutional. Pipelines declared victory.
Here’s the kicker- these same judges who referenced Denbury, and opined about private property rights, will hear eminent domain suits, once eminent domain proceedings begin. KMA Land AP via Star Telegram Lincoln Journal Star
The landowners trying to stop Keystone XL in Nebraska were dealt a blow in the Friday, January 9th, ruling of the Nebraska Supreme Court. Landowners won a majority of the Court, but not super majority. Highlights:
WSJ Nebraska Supreme Court Opinion
Response from Landowner Attorneys: The Fight for Property Rights Continues
TPPF’s legislative recommendations for eminent domain include:
The numerical threshold of what qualifies as a taking under the Act—
a 25% reduction of the market value of the affected private real property—is an arbitrary number that should be reduced or eliminated.
Condemnors should have the ability to issue waivers as an alternative to financial compensation. Those waivers should specifically mention which property rights are being reinstated per the waiver. Doing so will allow the waiver to “run with the land” for future owners, as well as prevent munici- palities from spending more.
The next 3 recommendations apply to common carrier and Denbury Issues:
Amend statute to shift the burden of proof in all property rights cases from the land owner to the condemnor.
Reduce judicial deference to the decisions of executive agencies and local governments.
Restore the constitutional right to both own and use property. Current case law, as held by the Texas Supreme, says, “Property owners do not acquire a constitutionally protected vested right in property uses.”
On par with bill filing rates in 2013, 5 eminent domain related bills have been filed to restrain or prohibit the use of eminent domain or the the taking of private property:
Anticipated bill filings: Bill responding to the summer 2014 Railroad Commission rulemaking, which was a response to 2013’s HB 2748, which was a response to the Denbury case.
Private property rights advocates will be laser focused on a report by two economists that shows that taking private property for public use is not economically beneficial.
The economists wrote that there is “a negative relationship between eminent domain and revenue growth.”
Landowners in the path of the Keystone XL pipeline, including those who have entered into easements, raise concerns about how landowners are labeled by condemning entities. The list of what not to say about landowners is:
Unhappy landowners publish media pieces, host concerts featuring Willie Nelson, and sue.
The Department of Transportation is condemning intangible property by amending it’s rules. Connecticut’s Department of Transportation is condemning bus routes used by private bus companies, because the state has a new bus plan to roll out.
The private transportation companies have sued. The bus routes operate with a CCN from the Department of Transportation.
The first judge to hear this case said the Dept. of Transportation has proper authority to condemn this intangible property because the CCNs fall within “land, building, equipment and facilities.”
Texas and Southwestern Cattle Raisers Association provided No Texas High Speed Rail it’s policy on eminent domain. TSCRA eminent domain policy is:
Eminent Domain Fairness
WHEREAS, it is recognized that the exercise of eminent domain powers is a valid governmental function; and
WHEREAS, it is recognized that there have been abuses by governmental and private entities possessing eminent domain powers; and
WHEREAS, the exercise of eminent domain should be appropriately limited and subject to the strict scrutiny of Texas courts; and
WHEREAS, actions to compel the taking of private property under law should
be transparent and subject to review; and
WHEREAS, it is essential that property owners be fully compensated and treated with fairness when forced to relinquish property rights; now, therefore, be it
RESOLVED, that TSCRA supports legislation to amend the Texas Constitution and other laws to ensure fair treatment of property owners by condemnors by:
1. Providing the landowner with a written statement or certificate of the condemnor’s right to exercise eminent domain as well as a copy of the condemnor’s resolution authorizing the taking of the landowner’s property and its letter to the Texas Comptroller registering the right of eminent domain;
2. Requiring advance written notice and complete information be given to the property owner regarding the project and the rights of the property owner before any negotiations commence;
3. Requiring that the condemnor negotiate in good faith and make a good faith offer in an amount designed to induce the voluntary transfer of property rights based on appraised fair market value of the property and damage to the remainder;
4. Requiring that the condemnor furnish to the property owner the appraisal and the form of easement agreement; and include the terms of the easement in the legal adjudication of the condemnation.
5. Providing for compensation for all losses suffered by the property owner, including the market value of the property taken, damage to the remainder, cost to cure, and diminution of access;
6. Providing for payment by the condemnor to the property owner of all costs and expenses, including attorney’s fees, when the condemnor misuses the legal process or unnecessarily threatens the interests of private property owners;
7. Providing that the condemnor pay all costs and expenses, including attorney’s fees, to the property owner when the award by the special commissioners or the court is greater than the condemnor’s original offer;
8. Providing written notice of the condemned property owner’s option to reacquire the condemned property, or property conveyed in lieu of condemnation, and all associated property rights, including mineral and groundwater rights, for the price paid by the condemnor if the original project causing the condemnation does not progress or is not completed within a reasonable time;
9. Requiring advance written notice to private property owners of the intent to survey or access the property and secure such consent in writing before entering the property;
10. Providing the landowner with an indemnity, proof of insurance, or written assurance that any damages occasioned by the survey or other activities, including construction, on the property will be the responsibility of the condemnor;
11. Requiring the condemnor to take full responsibility for themselves and contractors, including reasonable measures to monitor all gates, cattle guards, and fences securing livestock and repair or replace any such gates, cattle guards, and/or fences that are damaged;
12. Prohibiting access beyond the proposed and final condemnation area for unauthorized purposes;
13. Requiring that the condemnation will specifically reserve to the condemnee all rights to groundwater and minerals unless the taking is specifically designated for the taking of groundwater pursuant to Texas law;
14. Ensuring that the condemnor limit the width of any temporary or permanent easement to the minimum essential for the proposed project, restore any surface area and vegetation, and take steps to prevent and/or eliminate the invasion of noxious plants;
15. Requiring the condemnor to pursue alignments along existing right of ways of other utilities and along property boundaries to minimize damages to the landowner.
16. Requiring pipeline companies to adhere to objective routing standards similar to those in place at the PUC for power lines and requiring pipeline companies to receive approval from the RRC for the proposed routing through a contested case hearing.
17. Requiring the condemnor to provide condemnee with an estimate of reasonable attorneys’ fees required to evaluate the offer and proposed taking along with the appraisal and make an additional offer to pay this amount in a final settlement.”
In the perennial battle of how to simultaneously support landowners and economic prosperity, VT Governor supports a pipeline but goes to bat for landowners. The Governor asked the pipeline company to pause eminent domain legal proceedings and allow for negotiations.
Landowners want to be reimbursed for legal expenses they have incurred. The pipeline company initially said no, but now it says it is “definitely willing to consider reimbursement for legal expenses.” VT Digger
In 2014, a private tollroad coporation proposed new toll roads in North Texas. Town halls were held. Fire Marshalls shut them down as too many people turned out against new toll roads. City councils in the proposed toll areas passed resolutions opposing the plans to use eminent domain.
Toll road opponents and private property rights supporters united.
The 2015 Legislature will consider HB 565, which will stop private toll authorities from exercising eminent domain. HB 565
6 years of litigation and we might see the first jury trial. Here’s what happened:
Here’s what happened as a result of the litigation:
New York prohibits fracking. Mineral rights owners and companies with existing leases may file suit claiming that the fracking prohibition is tantamount to the state government taking their private property.
Austin Business Journal lists eminent domain, especially in relation to pipelines, as a must watch legislative issue for 2015.
Information Intelligence subscribers know that the hot legislative topicis broader. It’s any private company that has the power of eminent domain that triggers higher & hotter legislative scrutiny.
This includes private toll authorities, transmissions lines, and pipelines at a minimum. Austin Business Journal
The Green Bay Packers are the only professional franchise to be municipally owned.
Municipal acquisition of sports franchises is not an entirely new concept, Oakland considered eminent domain when the Raiders attempted to leave.
According to Stanford economist, Roger Noll, “whether eminent domain would work probably varies from state to state and from judge to judge.”
Even the threat of eminent domain could have an impact on professional sport franchise ownership negotiations for facilities. Vice
Management Districts are controlled by the cities in which they operate and by the statutes that created the districts. The dual level of oversight means that while state law may grant a management district the power of eminent domain, a city may restrict a management district’s use of eminent domain.
Such is the case in El Paso. Chapter 505 of the Government Code grants the Monticello Management district the power of eminent domain. The City Council of El Paso has prohibited the district’s ability to use eminent domain. KVIA
Claremont, CA is aquiring the local, private water company through eminent domain.
71% of Voters in November approved the use of eminent domain by the city. The city wasted no time to file legal action. It is believed that if the city aquires the water utility, rates will decrease. Claremont Courier
Texas Rice Land Partners Ltd. v. the Denbury Green Pipeline-Texas has been a hot legal topic for years. The repurcussions have been:
Question Posed: Whether municipalities must meet the population requirement in section 43.121 of the Local Government Code to annex property under section 43.129.
Opinion Summary: “Without further guidance from the courts or the Legislature, it is not possible to reliably predict whether a court would require a municipality to meet the 225,000 population requirement in subsection 43.12l(a) of the Local Government Code in order to annex for limited purposes by consent under the authority granted by section 43.129.”
Information Intelligence has written about the pending TX Supreme Court case about a pipeline that owes a landowner a hefty judgment and hasn’t paid it. The case is gaining attention and momentum. TPPF weighs in on the case of the non-paying pipeline:
This week TPPF released a private property rights paper about a pipeline company facing a judgment in excess of $1.6M against it. The judgment is unpaid and no bond is posted for appeal. It has ruffled feathers.
In the paper, TPPF reminds us transmission lines are no different that pipelines in that they both are private companies that have the power of eminent domain.
TPPF stresses 2 major points:
Compensation of land owners is a common refrain in eminent domain debate. When property is taken by private companies, such as pipelines, the debate grows more intense.
Massachusettes is considering a 12.5 percent royalty on any oil and gas transported in a pipeline through Massachusettes and ultimately sold to a foreign country. The royalty would be split amond land owners and is in addition to any compensation from taking of land through eminent domain. Daily Hampshire Gazette
The City of Denton passed a proposition to ban fracking. It’s led to lawsuits to stop the implementation of the ban.
New lawsuits may emerge from mineral rights owners. Mineral Rights owners could assert that the fracking ban ordinance unfairly restricts their ability to use their property. In short, that the city used a form of eminent domain to take their property and didn’t compensate the mineral rights owners for taking away their ability to extract the minerals. Breitbart
3 craft brewers are suing Texas Alcoholic Beverage Commission over a 2013 law that prohibits the brewers from distributing their product.
The craft brewers liken the prohibition from retaining distribution abilities to TABC exercising eminent domain. The analogy is that the law gives distributors property, that isn’t theirs and that they didn’t earn without compensating the the owner of the property, the craft brewers.
The Institute for Justice is representing the craft brewers. The Institute for Justice also represented a person named Kelo in an eminent domain case that caused quite an uproar.
Personal Liberty Texas Tribune
The South San Joaquin Irrigation District was granted approval to enter the retail electric market. South San Joaquin has its eyes on acquiring PG&E’s transmission lines, transformers and poles.
South San Joaquin co-owns hydroelectric damns. It’s not new to electric world. PG&E wants $600 million for its infrastructure. South San Joaquin wants to pay $125 million.
The two sides are far apart in compensation. Since South San Joaquin has the authority to use eminent domain coupled with the number of lawyers involved in the negotiations, compensation will most likely be determined by the courts. [SFGate]
“We will do whatever it takes to make sure landowners are treated fairly when an entity uses the power of eminent domain to claim land for public use.” – Robert McKnight, Second Vice President, Texas and Southwestern Cattle Raisers Association
Cattleraisers made hundreds of calls last session opposing Tryon Lewis’ common carrier bill, HB 2748. [Southeast Texas Legal Record]
Protesting eminent domain & protesting pipelines has become de rigueur. But, what is the cost impact?
WallStreet Journal examines the slowed development of Keystone XL pipeline and 10 other pipeline projects. The total economic cost of these projects is more than $20 billion. [WSJ]
Private property rights proponents say the RRC common carrier rules do not go far enough to protect private proeprty rights. 10 years ago, maybe this wouldn’t be a big deal. But, there’s an oil and gas boom in a state that has 97% of its land privately owned. If a private company wants to build a pipeline to move the oil and gas; it’s going to have to deal with private landowners.
Property rights proponents say the common carrier rules are:
Commissioner Craddick called the rules “vibrant, transparent permitting process for pipelines operating in the state of Texas.”
Landowners are on a winning streak with private property rights arguments in Texas courts. Most wins occur when a private company, like a pipeline, uses eminent domain. The murky territory of private companies acting like public entities.
On December 18th, the Court of Appeals for the 9th District will hear oral arguments in a case between land owners and a pipeline. These landowners won with the Texas Supreme Court. The Supreme Court sent common carrier standards back to the appellate court. Here we are full circle with more appellate arguments.
Stay tuned to see if landowners win- again. The ultimate decision will be with the 2015 Legislature. [SETexas Legal Record]
Refreshing Recollection: 2013’s legislative attempt to handle this issue ended up dead on a point of order. In 2015, as Informed Intel has highlighted there are also multiple court cases on landowner compensation that the Legislature can address.
John Stewart took on eminent domain. It’s hilarious, as always. Here’s an excerpt:
“I am disturbed by eminent domain abuse, because I think private property rights are fundamental to who we are as Americans… I don’t we should be helping out private interests,” Cruz said. “The problem with the Keystone Pipeline isn’t the issue of Eminent Domain, the problem is the Obama administration with the stroke of a pen shut that project down.”
“What the f–k?” Stewart said before mocking Cruz’s logic.
An eminent domain attorney Steve Adler, is in a run-off race to be the next mayor of Austin. [Texas Tribune]
In an interview with a local paper, Representative-Elect John Wray expounded on his views on private companies exercising eminent domain authority:
“We would also look at a private entity having eminent domain authority, which is always problematic.” [Waxahatchie DayLight]
This week the Railroad Commission passed rules to address when eminent domain attaches to certain common carriers. The rules will become official March 1st. The fight is making a beeline to the Legislature, which historically favors private property rights.
Background: This eminent domain fight began because of court cases, which sided with landowners & private property rights. Legislation moved forward in 2013, but died on an elegant point of order. [HB 2748]
The supporters and the opposition remain the same:
Ron Kirk will serve as senior advisor. He joins Robert Eckles and Tom Schieffer.
Central Texas Railway has been hosting public forums to discuss its projected Dallas to Houston route. Landowners along the route have raised concerns.
Building the bullet train requires land. Most land in Texas is privately owned by Texans, who love their land. Acquiring land presents challenges. [Dallas Morning News]
Land ownership is to Texans like blue is to the sky. Tarrant Regional Water District (TRWD) needs to move water around to meet supply demands. The project is expected to cost $2.3 Billion in tax revenues.
Two big flags in this fact pattern:
The land TRWD needs is owned by private citizens who want to continue to own their land without government interference.
State Representative Gooden requested information from TRWD, dissatisfaction ensued, campaign contributions flew around (all above board), and a grand jury is looking into the how TRWD is conducting its business. [Ft. Worth Star Telegram]
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