
For landowners, few words inspire more concern than “eminent domain.” The idea that the government or a private company can take part of your land for a pipeline project can be unsettling.
However, understanding your rights in these situations is crucial. While eminent domain laws allow for property to be seized for public use, landowners still have legal protections and avenues to ensure fair treatment and compensation.
What Is Eminent Domain?
Eminent domain is the power of the government—or, in some cases, private companies working on public utility projects—to take private property for public use. This authority is most often used for projects like highways, railroads, and pipelines that are deemed necessary for the greater good. In return, the law requires that the landowner receive “just compensation” for their property.
However, in practice, determining what constitutes just compensation and negotiating the terms of the property seizure can be complex, especially when dealing with pipeline projects.
How Eminent Domain Affects Pipeline Projects
Pipeline companies frequently rely on eminent domain to secure the land necessary to build infrastructure for oil, gas, and other utilities. In regions like West Virginia, Ohio, and Pennsylvania, where oil and gas development is widespread, landowners are increasingly encountering eminent domain claims related to pipeline construction.
If you’re a landowner, it’s important to understand that just because a pipeline company is exercising eminent domain doesn’t mean you’re powerless. Here’s what you need to know:
Just Compensation
The government or pipeline company must provide “just compensation” for the land they’re taking. This means they should pay you fair market value for the portion of your property that will be used. However, what is deemed fair by the company may not reflect the true value of your property, especially when considering the long-term impacts of the pipeline on the rest of your land. Working with an experienced attorney is crucial to ensuring you receive adequate compensation.
Surface Damage and Land Use
Pipelines can cause significant surface damage, which can affect the use of the land for agriculture, recreation, or development. Ensure that any agreement includes compensation for surface damage and that measures are taken to restore the land after the pipeline is installed. Landowners have the right to negotiate terms that limit the amount of disruption to their property.
Impact on Property Value
The presence of a pipeline can reduce the overall value of your property, even if only a small portion is seized for the project. Be sure to factor this into compensation negotiations. An attorney with experience in eminent domain cases can help evaluate the long-term financial impact of a pipeline on your property value and ensure this is accounted for in any settlement.
Your Legal Rights as a Landowner
As a landowner, you have several rights under eminent domain law that can protect you during pipeline negotiations:
Challenging the Need for the Project
In some cases, you can challenge the pipeline company’s claim that their project serves the public good. If you believe that the project is unnecessary or that the company is overstepping its authority, you may be able to contest the eminent domain claim in court. This is a rare but important option for landowners who feel their property is being unfairly targeted.
Negotiating Easement Terms
Even if you can’t prevent the pipeline from being built, you can negotiate the terms of the easement—the legal agreement that allows the company to use your land. This includes not only compensation but also terms related to how and where the pipeline will be constructed, how much access the company will have to your land, and what steps must be taken to restore the property after construction.
For example, you can negotiate for limits on the pipeline’s proximity to homes, barns, and other structures. You can also require the company to restore the land to its original condition once the project is complete.
Seeking Fair Compensation for Loss of Land Use
Eminent domain law requires that you be compensated not only for the value of the land taken but also for the loss of its use. For instance, if the pipeline prevents you from using a portion of your land for farming or development, you may be entitled to additional compensation.
Damage to the Environment and Water Supply
Pipelines, especially those transporting oil and gas, can pose risks to the environment, including contamination of soil or water supplies. Landowners can negotiate for safeguards to be put in place to protect their water supply and environmental health. If contamination occurs, you may have grounds for additional legal action to recover damages.
Key Considerations for Pipeline Negotiations
When negotiating with pipeline companies, it’s essential to keep the following factors in mind:
Long-Term Impact on Your Land
Even after the pipeline is built, the company may need access to your land for maintenance or future repairs. This can lead to ongoing disruptions. Be sure that your easement agreement limits how frequently the company can access your land and ensures they compensate you for any future damage.
Protecting Surface and Subsurface Rights
If you own both surface and mineral rights, the construction of a pipeline could affect future oil and gas development on your land. Ensure that your easement agreement addresses how the pipeline will impact your ability to lease or sell these rights in the future.
Environmental Safeguards
Include clauses in the agreement that require the pipeline company to take measures to prevent spills, erosion, or other environmental damage. Additionally, consider negotiating for regular monitoring of the pipeline to ensure that it doesn’t pose a risk to your property.
Seeking Legal Assistance
Navigating the legal intricacies of eminent domain and pipeline projects can be daunting. That’s why it’s critical to seek experienced legal counsel who understands the complexities of eminent domain law and has a track record of representing landowners in pipeline negotiations.
At Gold Khourey & Turak, we’ve helped hundreds of landowners navigate the complexities of eminent domain and negotiate fair terms with pipeline companies. Our goal is not only to secure the highest possible compensation for our clients but also to protect their land and legacy for generations to come.