{"id":18653,"date":"2012-09-26T11:06:01","date_gmt":"2012-09-26T16:06:01","guid":{"rendered":"http:\/\/stateimpact.npr.org\/texas\/?p=18653"},"modified":"2012-09-27T23:30:15","modified_gmt":"2012-09-28T04:30:15","slug":"whats-next-after-the-keystone-xl-pipelines-latest-court-victory","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/texas\/2012\/09\/26\/whats-next-after-the-keystone-xl-pipelines-latest-court-victory\/","title":{"rendered":"What&#8217;s Next After the Keystone XL Pipeline&#8217;s Latest Court Victory"},"content":{"rendered":"<div id=\"attachment_18688\"  class=\"wp-caption module image right\" style=\"max-width: 300px;\"><a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/09\/26\/whats-next-after-the-keystone-xl-pipelines-latest-court-victory\/beaumont-025-620x465\/\" rel=\"attachment wp-att-18688\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-18688\" title=\"Beaumont-025-620x465\" src=\"http:\/\/stateimpact.npr.org\/texas\/files\/2012\/09\/Beaumont-025-620x4651-300x225.jpg\" alt=\"\" width=\"300\" height=\"225\" srcset=\"https:\/\/stateimpact.npr.org\/texas\/files\/2012\/09\/Beaumont-025-620x4651-300x225.jpg 300w, https:\/\/stateimpact.npr.org\/texas\/files\/2012\/09\/Beaumont-025-620x4651.jpg 620w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><p class=\"wp-media-credit\">Photo by Dave Fehling\/StateImpact Texas<\/p><p class=\"wp-caption-text\">Jefferson County Court at Law Judge Tom Rugg listens to arguments in the property rights case earlier this month.<\/p><\/div>\n<p>Another court case appears to be breaking in favor of the <a href=\"http:\/\/stateimpact.npr.org\/texas\/tag\/keystone-xl-pipeline\/\">Keystone XL pipeline<\/a>, which will take heavy crude harvested in Canadian sand pits to refineries on the Texas Gulf Coast.<\/p>\n<p>On Tuesday,\u00a0<a href=\"http:\/\/www.co.jefferson.tx.us\/ccourts\/cc1.htm\">Judge Tom Rugg<\/a> of Jefferson County Court at Law 1 indicated that he believes TransCanada, the Canadian company behind the pipeline, has the <a href=\"http:\/\/www.co.jefferson.tx.us\/ccourts\/cc1_MX-B402_20120924_111720.pdf\">right to begin building the Keystone XL<\/a> on private land near Beaumont, Texas.\u00a0Houston brothers David and James Holland own the land. They lease some 4,000 acres out for rice farming and ranching under a group called Texas Rice Land Partners. There are already dozens of pipelines on their land, but they feel TransCanada low-balled them with their offer to build the <a href=\"http:\/\/stateimpact.npr.org\/texas\/topic\/keystone-xl-pipeline\/\">pipeline<\/a> across it. The company is trying to use <a href=\"http:\/\/stateimpact.npr.org\/texas\/topic\/eminent-domain\/\">eminent domain<\/a> to go ahead and build it anyways.<\/p>\n<p>But they can&#8217;t take the land just yet. The <a href=\"http:\/\/definitions.uslegal.com\/w\/writ-of-possession\/\">writ of\u00a0possession<\/a>\u00a0&#8212; the ruling that would give TransCanada the right to seize the land &#8212; hasn&#8217;t been issued. That will likely come down in a hearing Friday, according to the Judge.<\/p>\n<p>&#8220;If the bond issues are sorted out, I believe under the law that the pipeline is allowed a writ of possession,&#8221; Judge Rugg tells StateImpact Texas. (Reading Judge Rugg&#8217;s<a href=\"http:\/\/www.co.jefferson.tx.us\/ccourts\/cc1_MX-B402_20120924_111720.pdf\"> ruling<\/a> will make your head hurt. And he sympathizes with that.\u00a0\u201cIt is such a complex thing that we\u2019re dealing with that I just didn\u2019t know how to make it simpler,\u201d the judge says.)<\/p>\n<p>Those bond issues that will be addressed Friday\u00a0deal with how much TransCanada needs to put up in a bond. That&#8217;s a payment that TransCanada sets aside in case they ultimately lose their court battle against the landowners to cover damage from construction of the pipeline. Right now that bond is set at $5,000. And the landowners feel that isn&#8217;t enough.<\/p>\n<h4>&#8216;Here&#8217;s Where it Gets Troublesome&#8217;<\/h4>\n<p>There&#8217;s a lot of uncharted water here in challenging the bond amount, according to Judge Rugg. &#8220;Here\u2019s where it gets a little troublesome,&#8221; Judge Rugg says. &#8220;This is an area that has almost never been litigated in the history of condemnation litigation in the state.&#8221; And that&#8217;s just the\u00a0beginning.<!--more--><\/p>\n<div class=\"related-content alignleft\"><h4 class=\"related-header\">Related<\/h4><div class=\"links\"><h5>Posts<\/h5><ul><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/08\/22\/farmer-loses-case-against-keystone-xl-pipeline\/\">Farmer Loses Case Against Keystone XL Pipeline<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/08\/22\/texas-supreme-court-reinforces-denbury-decision-on-eminent-domain-again\/\">Texas Supreme Court Reinforces Denbury Decision on Eminent Domain. Again.<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/08\/24\/infographic-how-tar-sands-oil-gets-out-of-the-ground-and-into-a-pipeline\/\">Infographic: How Tar Sands Oil Gets Out of the Ground and Into a Pipeline<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/09\/05\/moving-crude-relies-on-aging-pipeline-system\/\">Moving Crude Relies on Aging Pipeline System<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/09\/19\/why-the-new-challenge-to-transcandas-pipeline-could-be-different\/\">How the New Challenge to TransCanda\u2019s Pipeline Could Be Different<\/a><\/li><\/ul><\/div><div class=\"topics\"><h5>Topics<\/h5><p class=\"topic\"><img class=\"alignleft\" src=\"http:\/\/stateimpact.npr.org\/texas\/files\/2012\/03\/141709149-60x60.jpg\" height=\"60\" width=\"60\" \/><a href=\"http:\/\/stateimpact.npr.org\/texas\/topic\/keystone-xl-pipeline\/\">What is the Keystone XL Pipeline?<\/a><\/p><p class=\"topic\"><img class=\"alignleft\" src=\"http:\/\/stateimpact.npr.org\/texas\/files\/2012\/04\/IMG_1150-e1345697253927.jpg\" height=\"60\" width=\"60\" \/><a href=\"http:\/\/stateimpact.npr.org\/texas\/topic\/eminent-domain\/\">How Eminent Domain Works in\u00a0Texas<\/a><\/p><\/div><\/div>\n<p>Texas is in a bit of a bind when it comes to landowners&#8217; rights and the pipeline industry. Massive booms in drilling for oil and gas &#8212; in Texas and many other parts of the country &#8212; has meant that there&#8217;s a glut of fuel that needs to be moved to\u00a0refineries\u00a0on the Gulf Coast. Arguably, the safest and most cost-effective way to do that is through pipelines.<\/p>\n<p>Most pipelines are able to reach agreements with landowners to compensate them for an easement on their land. This is typically a one-time payment good for the life of the pipeline. But if a landowner doesn&#8217;t want the pipeline on their land, or doesn&#8217;t like the offer from the pipeline, the company can use eminent domain. And that&#8217;s where things get tricky.<\/p>\n<p>To get eminent domain, all a pipeline company has to do is <a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/03\/06\/how-to-get-eminent-domain-in-texas-just-check-this-box\/\">check a box<\/a> on a two-page form to the <a href=\"http:\/\/stateimpact.npr.org\/texas\/tag\/railroad-commission-of-texas\/\">Railroad Commission of Texas<\/a>, which oversees drilling and pipelines in the state. The pipeline company says they are a &#8220;common carrier,&#8221; a project for the public good, and is entitled to build their project on private land. TransCanada has used eminent domain against over a hundred landowners in Texas to build their Keystone XL pipeline. &#8220;What\u2019s going on right now clearly doesn\u2019t provide any confidence in a determination that a pipeline does or does not enjoy common carrier status,&#8221; Judge Rugg says.<\/p>\n<h4>New Precedents for Old Conflicts<\/h4>\n<p>But last year, in a decision that&#8217;s been <a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/08\/22\/texas-supreme-court-reinforces-denbury-decision-on-eminent-domain-again\/\">reaffirmed twice<\/a>, the Texas Supreme Court said that wasn&#8217;t good enough. In <a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/04\/20\/law-of-the-land-how-transcanada-will-leave-its-mark-on-texas-property-rights\/\">Texas Rice Land Partners vs Denbury Green<\/a>, the Court found that\u00a0Denbury hadn&#8217;t adequately proved their right to use eminent domain to build a carbon dioxide pipeline on the Hollands&#8217; land.<\/p>\n<p>&#8220;We have long held that the ultimate question of whether a particular [pipeline] use is a public use is a judicial question to be decided by the courts,&#8221; the court wrote in its ruling. &#8220;We have also held in numerous contexts that the [Railroad] Commission does not have authority to determine property rights.&#8221;<\/p>\n<p>It&#8217;s become a <a href=\"http:\/\/stateimpact.npr.org\/texas\/2012\/02\/14\/this-land-was-your-land-now-its-our-land-keystone-xl-and-eminent-domain\/\">closely-watched decision<\/a> that is being used by other landowners fighting eminent domain claims by pipeline companies on their land, as in the case of North Texas farmer Julia Trigg Crawford. She lost her case against TransCanada&#8217;s claims of eminent domain last month but has <a href=\"http:\/\/nacstop.org\/standwithjulia\/index.html\">vowed to appeal.<\/a>\u00a0TransCanada has <a href=\"http:\/\/nacstop.org\/standwithjulia\/index.html\">already cut her fence<\/a> and begun surveying her land.<\/p>\n<p>So now, if you&#8217;re a private landowner with the time and money to take a pipeline company to court &#8212; whether for environmental or property reasons, or simply because you want more money for your land &#8212; you have a legal foundation to do so.<\/p>\n<h4>Looking to the Lege<\/h4>\n<p>Another question, Judge Rugg says, is if TransCanada wins against a landowner in another Texas county, like Crawford&#8217;s case, is that decision binding on cases in his court?<\/p>\n<p>&#8220;I don\u2019t know the answer to that question,&#8221; he says. Which is why he believes the state legislature needs to act in the upcoming session.<\/p>\n<p>&#8220;We\u2019re dealing in an area of the law that\u2019s pretty unsettled,&#8221; Judge Rugg says. &#8220;I think it will ultimately take some action by the legislature. You ought to have a standard that doesn\u2019t vary from county to county or lawsuit to lawsuit. A standard that can be applied that doesn\u2019t generate a great deal of controversy.&#8221;<\/p>\n<p>&#8220;If it doesn\u2019t happen,&#8221; Judge Rugg says, &#8220;you\u2019ll see more protracted litigation as companies run across landowners who are capable of financing litigation. And ultimately the Supreme Court of Texas will have to weigh in.&#8221;<\/p>\n<p>How would a legislative solution to the problem work? &#8220;Ideally, I would think that there\u2019s be an administrative body, such as the Railroad Commission, who would require much more info than they do now to make a common carrier status,&#8221; Judge Rugg says. &#8220;That decision would be binding on property owners. There&#8217;s some real problems with that approach though. Private property ownership is a constitutionally protected right in Texas.&#8221; So such a legislative solution could require an amendment to the Texas\u00a0Constitution.<\/p>\n<p>But even if Judge Rugg says TransCanada can start building the pipeline on Friday, the case is\u00a0likely\u00a0far from over. The landowners can still challenge TransCanada&#8217;s right to eminent domain in court. And they can also challenge the value of the property being condemned by the pipeline company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why Texas is in a bit of a bind when it comes to landowners&#8217; rights and the pipeline industry. <\/p>\n","protected":false},"author":50,"featured_media":18688,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[59],"tags":[214,73,50],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/posts\/18653"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/users\/50"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/comments?post=18653"}],"version-history":[{"count":0,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/posts\/18653\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/media\/18688"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/media?parent=18653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/categories?post=18653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/tags?post=18653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}