Uses and Abuses of Eminent Domain in the Commonwealth
“Last October, energy industry firms began gauging interest within Kentucky for construction of a natural gas liquids (“NGL”) pipeline.FN1 Operating under the name Bluegrass Pipeline (“Pipeline”), the new Pipeline will span thirteen counties, and connect to an existing interstate NGL pipeline in western Kentucky.FN2 The purpose of the Pipeline is to transport approximately 300,000 NGL barrels per day from northern Appalachia to the Gulf Coast.FN3
This commentary does not evaluate the numerous environmental, economic, political, and social issues associated with construction of an NGL pipeline. Rather, this piece focuses on the ongoing effort by the Kentucky General Assembly to amend Kentucky’s eminent domain statute to prohibit its invocation in developing the Pipeline.FN4
Pipeline construction requires easements.FN5 Because an easement right is negotiated and transferred privately the involved parties are typically pleased with the outcome. In effect, easements readily illustrate the value and efficiency of free market transactions.”
Monarch, Ben. Kentucky Law Journal 13 March 2014.