Texas Supreme Court Declines to Clarify Texas Eminent Domain Law Re: Keystone XL Pipeline
“On September 6, 2013, the Texas Supreme Court (the “Court”) declined to clarify whether the statutory condemnation system set forth in the Texas Property Code (specifically, the interpretation of Tex. Gov’t Code §21.021) requires a court to make a “preliminary finding” of common carrier status before awarding temporary possession to a pipeline company. The court’s refusal to weigh in on the dispute represents a missed opportunity to clarify the statutory framework at a time of increasing pipeline projects fueled by the continued expansion of oil and gas drilling activity in Texas.
Texas Rice Land Partners, L.P., James E. Holland and David C. Holland (collectively, “TRL”) own farmland in Jefferson County, Texas. In re Texas Rice Land Partners, Ltd., 402 S.W.3d 334, 336 Tex. App.—Beaumont 2013. TransCanada Keystone Pipeline, L.P. (“TransCanada”) is the owner and operator of the U.S. portion of the planned 2,151 mile crude petroleum Keystone Pipeline System designed to bring Canadian oil sands to Mid-West and Gulf Coast refineries. TransCanada filed a petition for condemnation for an easement across TRL’s farmland after unsuccessful negotiations. The trial court issued TransCanada’s requested writ of possession and awarded TRL $20,808 as compensation for the easement. “
Loocke, Bryan and Stephen Boone. National Law Review 17 September 2013.