{"id":234,"date":"2014-03-31T05:00:21","date_gmt":"2014-03-31T10:00:21","guid":{"rendered":"http:\/\/agrilife.org\/texasaglaw\/?p=234"},"modified":"2026-04-17T15:34:36","modified_gmt":"2026-04-17T20:34:36","slug":"eminent-domain-in-texas-part-3-oil-and-gas-pipelines","status":"publish","type":"post","link":"https:\/\/agrilife.org\/texasaglaw\/2014\/03\/31\/eminent-domain-in-texas-part-3-oil-and-gas-pipelines\/","title":{"rendered":"Eminent Domain in Texas (Part 3) &#8211; Oil and Gas Pipelines"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"color: #800000;\">*This article is not a substitute for the advice of an attorney.*<\/span><\/p>\n<p>Today we continue on with Part 3 in the Eminent Domain Texas series.\u00a0 Click here if you missed <a href=\"http:\/\/agrilife.org\/texasaglaw\/2014\/03\/17\/eminent-domain-in-texas-part-1-what-is-it\/\">Part 1<\/a> or <a href=\"http:\/\/agrilife.org\/texasaglaw\/2014\/03\/24\/eminent-domain-in-texas-part-2-condemnation-proceedings-step-by-step\/\">Part 2<\/a>.<\/p>\n<p>Due to the increase in Texas oil production over the past few years, the number of pipelines necessary to transport product has greatly increased and resulted\u00a0in oil and gas pipeline companies seeking\u00a0easements from landowners.\u00a0 As of November 2012, there are 366,274 miles of pipelines crisscrossing the state of Texas.\u00a0 \u00a0As\u00a0oil production continues to increase and new pipeline projects are built, eminent domain issues are popping up for landowners across the state.\u00a0 A single pipeline project can result in multiple condemnation proceedings against different landowners.\u00a0 For example, the TransCanada Keystone XL pipeline, the last leg of which will run from Cushing, OK to Port Arthur, Texas, resulted in the filing of over 80 condemnation suits.<\/p>\n<p>In light of the increasing number of pipeline projects across Texas, this blog will focus on eminent domain as it relates to common carrier pipelines.\u00a0 (Please note that there are other types of pipeline companies that may have eminent domain power, such as gas utilities, that do not have to qualify as a common carrier in order to exercise the power.)<\/p>\n<p><a href=\"http:\/\/agrilife.org\/texasaglaw\/files\/2014\/03\/pipeline3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1243 aligncenter\" src=\"http:\/\/agrilife.org\/texasaglaw\/files\/2014\/03\/pipeline3-300x224.jpg\" alt=\"pipeline3\" width=\"300\" height=\"224\" srcset=\"https:\/\/agrilife.org\/texasaglaw\/files\/2014\/03\/pipeline3-300x224.jpg 300w, https:\/\/agrilife.org\/texasaglaw\/files\/2014\/03\/pipeline3-1024x766.jpg 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"text-decoration: underline;\"><strong>Pipelines and Eminent Domain<\/strong><\/span><\/p>\n<p style=\"text-align: left;\"><strong>What is a common carrier? \u00a0<\/strong>Eminent domain is available to pipeline companies that are deemed &#8220;common carriers.&#8221;\u00a0 A common carrier is defined by statute, <a href=\"http:\/\/www.statutes.legis.state.tx.us\/Docs\/NR\/htm\/NR.111.htm\">Texas Natural Resources Code Sections 111.002, 111.003, and 111.0013<\/a>.\u00a0 Basically, these statutes provide that\u00a0 a pipeline company is a common carrier if it owns or operates a pipeline that transports crude oil, coal, carbon dioxide or hydrogen for hire, or transports crude oil purchased from others.\u00a0\u00a0Natural gas pipelines, although not governed by the same statutes as crude oil pipelines, are also considered common carriers if they transport natural gas for hire.\u00a0 Pipelines that transport only their own product\u00a0are not considered common carriers.<\/p>\n<p style=\"text-align: left;\"><strong>Who determines common carrier status?<\/strong> The pipeline company is required to file a form with the Texas Railroad Commission, the state agency in charge of regulating oil and gas production.\u00a0 The T-4 Form requires the company to declare whether it is a common carrier by checking a box that it is either a common carrier or a private line, and by answering whether it will carry only the gas and\/or liquids produced by the pipeline owner or operator.\u00a0 The Railroad Commission is not authorized to investigating this status, meaning that the representation of the company on the form is taken at face value.\u00a0 Thus, the determination of common carrier status is essentially made by the pipeline.<\/p>\n<p style=\"text-align: left;\">Landowners, however, are not without recourse and may challenge the pipeline company&#8217;s designation as a common carrier.\u00a0 Once a landowner challenges a pipeline&#8217;s common carrier status, the pipeline bears the burden of proving that it is, in fact, a common carrier in order to exercise the power of eminent domain.\u00a0 For example, <span style=\"color: #000000;\">the Texas Supreme Court in\u00a0<em>Texas Rice Land Partners, Ltd v. Denbury Green Pipeline-Texas,<\/em> <em>LLC<\/em>,\u00a0 held that\u00a0a landowner may challenge an eminent domain proceeding in court on grounds that\u00a0a CO2\u00a0pipeline company is not a common carrier.\u00a0\u00a0The court found that a pipeline is not irrefutably considered a common carrier merely by declaring it so on the T-4 form.\u00a0 It is important to note, however, that this decision was limited to CO2 pipelines and it remains to be seen whether the Texas Supreme Court will expand its interpretation to oil and gas pipelines as well.\u00a0 [Read opinion <a href=\"http:\/\/www.leagle.com\/decision\/In%20TXCO%2020110826610\">here<\/a>.]<\/span><\/p>\n<p style=\"text-align: left;\">Although two bills in the 2013 Texas Legislature sought to modify the common carrier designation process&#8211;one supported by landowner groups and another supported by the oil and gas industry&#8211;neither bill was successful.\u00a0 To read more about these bills, <a href=\"http:\/\/stateimpact.npr.org\/texas\/2013\/03\/14\/eminent-domain-comes-to-the-texas-legislature\/\">click here<\/a>.<\/p>\n<p style=\"text-align: left;\"><strong>What can be condemned by a pipeline company?<\/strong>\u00a0 Pipeline companies may condemn land, rights-of-way, easements, and property that\u00a0is necessary to build and operate common carrier pipelines.<\/p>\n<p style=\"text-align: left;\"><strong>What is\u00a0adequate compensation?<\/strong>\u00a0 As has been explained in more detail in the prior posts in this series, adequate compensation is the market value of the property being taken, at the time the taking occurs.\u00a0\u00a0Adequate compensation may also include payment of damages if the value of a landowner&#8217;s remaining property is diminished due to the condemnation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>*This article is not a substitute for the advice of an attorney.* Today we continue on with Part 3 in the Eminent Domain Texas series.\u00a0 Click here if you missed Part 1 or Part 2. Due to the increase in Texas oil production over the past few years, the number of pipelines necessary to transport product has greatly increased and resulted\u00a0in oil and gas pipeline companies seeking\u00a0easements from landowners.\u00a0 As of November 2012, there are 366,274 miles of pipelines crisscrossing the state of Texas.\u00a0 \u00a0As\u00a0oil production continues to&#8230; <span class=\"read-more\"><a href=\"https:\/\/agrilife.org\/texasaglaw\/2014\/03\/31\/eminent-domain-in-texas-part-3-oil-and-gas-pipelines\/\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2443,"featured_media":1243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12,59],"tags":[],"class_list":["post-234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-eminent-domain","category-eminent-domain-in-texas-series"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Eminent Domain in Texas (Part 3) - Oil and Gas Pipelines - Texas Agriculture Law<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/agrilife.org\/texasaglaw\/2014\/03\/31\/eminent-domain-in-texas-part-3-oil-and-gas-pipelines\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eminent Domain in Texas (Part 3) - Oil and Gas Pipelines - Texas Agriculture Law\" \/>\n<meta property=\"og:description\" content=\"*This article is not a substitute for the advice of an attorney.* Today we continue on with Part 3 in the Eminent Domain Texas series.\u00a0 Click here if you missed Part 1 or Part 2. 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