Pipelines. Eminent Domain. TXSCT clarification. 3 Points to be Conversant.

Is checking the box enough for the courts to say yes, pipeline, you have eminent domain? NO.

What do pipelines have to show in court? That there is a public use by meeting this standard:

  • “reasonable probability” that the pipeline would be used to transport gas
  • for “one or more customers who will either retain ownership of their gas or sell it to parties other than the carrier.”

Did Denbury meet the new standard? Yes, by showing its existing contract with another entity to transport CO2

What do private property rights groups say is still missing? Some meat to “public use”

Dallas Morning News | Latest ruling on eminent domain eases fears of Texas pipeline builders