Parker County Today PCT March 2019 | Page 13

Negotiating Agreements with Pipeline Companies By Bryan May T Bryan May involved, how much land will be used, the planned above and below ground facilities, and the current and expected future use of the land. Often overlooked, but potentially as important as the initial consideration, are the rights retained by the landowner. While the landowner may never be able to build a structure or impound water on an active pipeline, many landowners want provisions in their easement agreements that permit future roads and utilities to cross the pipeline, and allow for parking lots or landscaping on the easement. Other important considerations include the loca- tion of the proposed pipeline, potential environmental and cata- strophic damages, future replace- ment or major repair of the pipe- line, and termination of the ease- ment. It is important to discuss these provisions with an attorney with experience negotiating ease- ment agreements and handling condemnation matters. This article is for informational purposes only and not for the purpose of providing legal advice.  You should contact an attor- ney to obtain advice with respect to any particular legal issue. Bryan May is an oil and gas attorney with Harris, Finley & Bogle, P.C., with a unique industry expertise as a Certified Professional Landman. Bryan’s practice focuses on representing landowners and oil and gas companies in various matters. He can be reached at [email protected] or at 817.870-8706. of the property, (iv) and allow the landowner certain time periods to respond to each offer. Once a party with eminent domain power has complied with its due process obligations, files a condemnation lawsuit, and the appropriate parties are served with notice the judge presiding over the case will appoint three special commissioners. The special commissioners are designated to determine the value of the prop- erty to be condemned. Each party may provide the special commis- sioners with evidence about the value of the property, and the effect of the condemnation on the value of the remaining land. Once the special commissioners deter- mine the value of the property to be condemned, called the ease- ment property, the party seeking condemnation may simply pay this amount to the landowner and the court will authorize construc- tion of the pipeline. If either party disputes the special commis- sioners’ value determination, the disputing party may seek a hear- ing to present evidence to the court regarding the value of the easement property and the value of the remaining land burdened by the easement. Avoiding eminent domain proceedings is often in the best interest of all involved. As such, it is important to main- tain contact with the pipeline company and to work toward agreeable terms when negotiat- ing a potential agreement. For some, the most meaningful term is the initial consideration paid for the easement. This amount ranges substantially depend- ing on the specifics of the land he State of Texas is at the forefront of unprecedented growth. From highway work in population centers to buildouts in energy hubs and the pipelines that connect the two, the entire state is experiencing rapid expan- sion, particularly in infrastructure. As a state with historical regard for private property as well as an economy and cultural identity tied to oil and gas, rapid growth can be problematic. Across Parker County, land- owners and pipeline companies are seeking relief under the Fifth Amendment to the United States Constitution. The Fifth Amendment provides that “No person shall be … deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compen- sation.” Keep the following in mind if you are contacted by a company seeking to build a pipe- line on your property. Many pipeline companies are considered by the government to be common carriers. Common carriers are given broad power to use eminent domain to condemn private property for public uses, such as pipelines. Condemnation power comes with strict due process obligations. Before bring- ing a condemnation lawsuit, an entity holding the power of eminent domain seeking to construct a pipeline across private property must (i) make at least two good faith offers to acquire the property from the landowner, (ii) provide the landowner a copy of the State of Texas Landowner’s Bill of Rights, (iii) provide the landowner at least one appraisal 11