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How Eminent Domain Works in Texas

Background

Texans take pride in the their private property. Over 95 percent of land in the Lone Star State is privately owned. And sometimes, pipeline companies want to use that land for their projects.

Typically a pipeline company will reach an individual agreement with a landowner on compensation, but in the event of a failure to reach an agreement, pipeline companies in Texas at times use eminent domain to “condem” the land needed for their pipeline.

The Keystone XL pipeline has brought the issues of eminent domain and landowner rights in Texas into the spotlight. Some landowners have refused to sign agreements with the company, and in response the company behind the pipeline has filed claims of eminent domain. Over a hundred in Texas.

Some landowners argue that they have no recourse when this happens. A county commissioners court can only assess the value of the land to be condemned, not whether or not the company has a right to seize land in the first place. In short, fighting a company’s claim of eminent domain in court can be costly and time-consuming.

To get eminent domain to route a pipeline across private land in Texas, all a company has to do is check a box on a two-page form to the Railroad Commission of Texas (which regulates drilling and pipelines in the state).

By checking that box, the pipeline company says it is a “common carrier,” i.e. a pipeline that will be available at market rates for other companies to use, and therefore in the public interest.

Latest Posts

The Latest on the Keystone XL Pipeline

In Texas, the Keystone XL pipeline, which will take heavy oil harvested from sand pits in Canada to refineries on the Gulf Coast of Texas, has raised questions about eminent domain and potentially leaky pipes. Despite those controversies, Texas’ portion of the pipeline is nearly completed. That section will link up with the existing Keystone pipeline to trasport […]

Eminent Domain: How the Courts are Transforming Texas Land Rights

This is part three of a three-part series devoted to looking at efforts to overhaul eminent domain in Texas and what may come next for landowners, pipeline companies, and the oil and gas industry. Read Part One here and Part Two here. At the O’Keefe’s farm outside of Beaumont, Texas, Dick and his sister Margaret […]

How An Overhaul of Eminent Domain Law Failed In Texas

This is part two of a three-part series devoted to looking at efforts to overhaul eminent domain in Texas and what may come next for landowners, pipeline companies, and the oil and gas industry. Read Part One here. At the outset of this year’s regular legislative session, lawmakers on both sides of the aisle filed […]

Pipeline Bills Moving This Session, But Maybe Not the Ones You Were Thinking

The big questions about the future of pipelines in Texas this legislative session revolve around how companies should be able to use eminent domain to build them. Those questions remain unanswered. But while Texas lawmakers have been unable to agree on reforms to pipeline companies common carrier status, they have voted some other bills out […]

What to Watch For at the Texas Legislature This Week

Time is running out for Texas legislators as the 83rd legislative session nears its conclusion. This week will see plenty of activity on bills that deal with water, eminent domain and roads. In our weekly installment, we pick some of the energy and environment legislation we’re watching this week. Think we missed something? Feel free […]

Landowners and Pipelines Look to Legislature for Eminent Domain Reform

Photo by Terrence Henry/StateImpact Texas The Keystone XL pipeline under construction in East Texas. The state legislature is considering plans to change how pipelines use eminent domain in the state. The controversial Keystone XL pipeline, which would take heavy crude oil from sand pits in Canada to refineries on the Gulf Coast of Texas, is […]

Eminent Domain Comes to the Texas Legislature

When supporters of the Keystone XL pipeline said it would bring jobs to Texas, they probably weren’t talking about jobs for lawyers. That’s just kind of how it worked out. As property owners challenge the company’s use of eminent domain, the project to bring crude from the Canadian tar sands to refineries on the Texas Gulf […]

Landowner Fights Keystone XL Pipeline By Suing the State

Mike Bishop is fired up. He’s standing with about a dozen protestors and half that many reporters in front of a state office building, waving a lawsuit in his hands. “It’s beyond me why regulatory agencies and elected officials can’t say, ‘You know what? I made a mistake. I’m so sorry. You know what we’re […]

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