{"id":29725,"date":"2013-07-16T07:37:33","date_gmt":"2013-07-16T12:37:33","guid":{"rendered":"http:\/\/stateimpact.npr.org\/texas\/?p=29725"},"modified":"2013-07-17T10:42:54","modified_gmt":"2013-07-17T15:42:54","slug":"how-changes-to-eminent-domain-failed-and-why-some-say-thats-just-fine","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/texas\/2013\/07\/16\/how-changes-to-eminent-domain-failed-and-why-some-say-thats-just-fine\/","title":{"rendered":"How An Overhaul of Eminent Domain Law Failed In Texas"},"content":{"rendered":"<div id=\"attachment_27585\"  class=\"wp-caption module image right\" style=\"max-width: 196px;\"><a class=\"fancybox\" title=\"Efforts to overhaul land rights failed in this years regular legislative session.\" href=\"http:\/\/stateimpact.npr.org\/texas\/files\/2013\/05\/13524482_H21746453.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-27585\" alt=\"Efforts to overhaul land rights failed in this years regular legislative session.\" src=\"http:\/\/stateimpact.npr.org\/texas\/files\/2013\/05\/13524482_H21746453-196x300.jpg\" width=\"196\" height=\"300\" \/><\/a><p class=\"wp-media-credit\">MATT STAMEY\/Gainesville Sun \/Landov<\/p><p class=\"wp-caption-text\">Efforts to overhaul land rights failed in this years regular legislative session.<\/p><\/div>\n<p><strong><em>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 <a href=\"http:\/\/stateimpact.npr.org\/texas\/2013\/07\/15\/eminent-domain-in-texas-landowners-face-continued-uncertainty\/\">here<\/a>.<\/em><\/strong><\/p>\n<p>At the outset of this year\u2019s regular legislative session, lawmakers on both sides of the aisle filed a handful of bills to <a href=\"http:\/\/stateimpact.npr.org\/texas\/2013\/04\/17\/landowners-and-pipelines-look-to-legislature-for-eminent-domain-reform\/\">change how pipeline companies can take land in Texas<\/a>. While the bills tackled the issue differently, they had one thing in common: they sought to move some of the debate over a pipeline&#8217;s use of condemnation from county courthouses to state agencies. In the end it was that commonality that became a sticking point in the debate over Texas land rights.<\/p>\n<p>Along the way, some very big names in politics and industry got involved.<\/p>\n<p>Right now, a company that wants to lay a pipeline in Texas can <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 form declaring itself a \u201ccommon carrier.\u201d\u00a0 The idea is that it will provide its services for hire to transport oil and gas. It\u2019s that role \u00a0\u2013 which some say makes it similar to a utility &#8211; that gives it the right to take land.<\/p>\n<p><!--more-->But in Texas, there\u2019s no test to make sure the pipeline will act like a common carrier.\u00a0<!--more--><\/p>\n<p><iframe loading=\"lazy\" width=\"100%\" height=\"166\" scrolling=\"no\" frameborder=\"no\" src=\"https:\/\/w.soundcloud.com\/player\/?url=http%3A%2F%2Fapi.soundcloud.com%2Ftracks%2F101275518\"><\/iframe><br \/>\nIf a landowner wants a company to prove its right to take land, he or she must challenge the pipeline in court. It&#8217;s costly and time consuming for the landowner, and puts pipelines in a legal limbo, where they may need to litigate their right to condemn land numerous times down the route of a pipeline.<\/p>\n<p>The bills filed this year proposed new processes to determine whether a pipeline can call itself a common carrier at the outset.<\/p>\n<p>One bill, authored by state Rep. Tryon Lewis (R-Odessa), found favor with pipeline companies.<\/p>\n<p>\u201cFrom the pipelines&#8217; point of view, it allowed us to get a determination before we started down the construction path to make sure we knew what the legal consequences were going to be early on in the process,\u201d said James Mann, a lawyer for the <a href=\"http:\/\/texaspipelines.com\/\">Texas Pipeline Association<\/a>.<\/p>\n<p><div id=\"attachment_9030\"  class=\"wp-caption module image left\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"James Mann is a lawyer who works for pipeline companies in Texas.\" href=\"http:\/\/stateimpact.npr.org\/texas\/files\/2012\/04\/mann.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-9030\" alt=\"James Mann is a lawyer who works for pipeline companies in Texas.\" src=\"http:\/\/stateimpact.npr.org\/texas\/files\/2012\/04\/mann-300x224.jpg\" width=\"300\" height=\"224\" srcset=\"https:\/\/stateimpact.npr.org\/texas\/files\/2012\/04\/mann-300x224.jpg 300w, https:\/\/stateimpact.npr.org\/texas\/files\/2012\/04\/mann-620x463.jpg 620w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><p class=\"wp-media-credit\">Photo by Mose Buchele for StateImpact Texas<\/p><p class=\"wp-caption-text\">James Mann is a lawyer who works for pipeline companies in Texas.<\/p><\/div>Lewis\u2019s bill began its life as a half-page piece of legislation that called for hearings to determine common carrier statutes at the state\u2019s oil and gas regulator, the Railroad Commission of Texas. By the time it was ready for a vote, the document was five pages, the product of an intense back-and-forth from key players.<\/p>\n<p>\u201cWe did some serious horse-trading in terms of provisions that were in that bill,\u201d Norman Garza who worked on the issue with the <a href=\"http:\/\/www.texasfarmbureau.org\/\">Texas Farm Bureau<\/a>, told StateImpact Texas.<\/p>\n<p>But Garza said late in the process the Farm Bureau found itself frozen out of those negotiations. It decided to oppose the bill, which died on a point of order.<\/p>\n<p>Another bill, by state Rep. Rene Oliveira (D-Brownsville), found a bit more support from landowner groups, but, he says, was rejected by the industry.<\/p>\n<p>\u201cI would have tried to find common ground and solve the problem because it still needs to be solved,&#8221; Oliveira told StateImpact Texas.<b style=\"mso-bidi-font-weight: normal;\"><\/b><\/p>\n<p>By session\u2019s end, none of the bills had bridged the divide. And the reason goes back to the role of the courts. As James Mann pointed out, pipelines want to ensure they can\u2019t be sued by every landowner along a route. They want one determination to take land and then to carry on building pipelines.<\/p>\n<p>\u201cNo sane person wants serial litigation,&#8221; Mann told StateImpact Texas. &#8220;Well, I take that back. Certainly lawyers benefit from serial litigation,&#8221; he added dryly.<\/p>\n<p><div id=\"attachment_29860\"  class=\"wp-caption module image right\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"Norman Garza (left) and Billy Howe (right) worked on eminent domain issues for the Texas Farm Bureau.\" href=\"http:\/\/stateimpact.npr.org\/texas\/files\/2013\/07\/IMG_2121.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-29860\" alt=\"Norman Garza (left) and Billy Howe (right) worked on eminent domain issues for the Texas Farm Bureau.\" src=\"http:\/\/stateimpact.npr.org\/texas\/files\/2013\/07\/IMG_2121-300x225.jpg\" width=\"300\" height=\"225\" srcset=\"https:\/\/stateimpact.npr.org\/texas\/files\/2013\/07\/IMG_2121-300x225.jpg 300w, https:\/\/stateimpact.npr.org\/texas\/files\/2013\/07\/IMG_2121-620x465.jpg 620w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><p class=\"wp-media-credit\">Photo by Mose Buchele<\/p><p class=\"wp-caption-text\">Norman Garza (left) and Billy Howe (right) worked on eminent domain issues for the Texas Farm Bureau.<\/p><\/div>But many landowner groups say the right to challenge pipelines at the county courthouse, a right that landowners have always had, was exactly the thing they would not give up.<\/p>\n<p>&#8220;They never came up with anything at the Railroad Commission that was better than the local courthouse for the affected landowners,&#8221; Billy Howe with the <a href=\"http:\/\/www.texasfarmbureau.org\/\">Texas Farm Bureau<\/a> told StateImpact Texas. For groups like the Texas Farm Bureau, the defeat of the bills amounted to a victory for landowners.<\/p>\n<p>Landowner advocates argued that having one process at a state agency to determine if a pipeline company is on solid legal footing, and keeping the right to challenge the company in county court could work well for both pipelines and landowners. After all, if a state agency had granted the right of condemnation to a company, they would likely prevail in any court case, the logic went.<\/p>\n<p>If the gap between the two didn\u2019t appear insurmountable already, the arrival of lobbying groups including trial lawyers and tort reform groups added to the impasse at the capitol. Things became even more complicated when two powerful oil and gas families entered the fray.<\/p>\n<p>\u201cThe Bass family out of Fort Worth was a power player,&#8221; Mann told StateImpact Texas. &#8220;It would be my guess. It\u2019s only my guess. That it was that particular group that managed to get Judge Lewis&#8217; bill killed on a point of order.\u201d<\/p>\n<p>The<a href=\"http:\/\/www.nytimes.com\/1988\/06\/05\/business\/texas-deal-maker-robert-m-bass-a-younger-brother-steps-out-on-his-own.html?pagewanted=all&amp;src=pm\"> Bass brothers<\/a> control one of the country\u2019s largest privately held oil and gas companies. They are also large landholders and advocates for private property rights. But they weren&#8217;t the only big names to enter the fray.<\/p>\n<div id=\"attachment_25330\"  class=\"wp-caption module image right\" style=\"max-width: 199px;\"><a class=\"fancybox\" title=\"State Rep Rene Oliveira has filed legislation that would put common carrier hearings at the State Office of Administrative Hearings.\" href=\"http:\/\/stateimpact.npr.org\/texas\/files\/2013\/03\/oliveira4.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-25330\" alt=\"State Rep Rene Oliveira has filed legislation that would put common carrier hearings at the State Office of Administrative Hearings.\" src=\"http:\/\/stateimpact.npr.org\/texas\/files\/2013\/03\/oliveira4.jpg\" width=\"199\" height=\"278\" \/><\/a><p class=\"wp-media-credit\">Photo Courtesy of the Texas State Legislature.<\/p><p class=\"wp-caption-text\">State Rep Rene Oliveira has filed legislation that would put common carrier hearings at the State Office of Administrative Hearings.<\/p><\/div>\n<p>Supporting Tryon Lewis&#8217; bill was another family flush with oil and gas money: The <a href=\"http:\/\/www.washingtonpost.com\/lifestyle\/style\/billionaire-koch-brothers-use-web-to-take-on-media-reports-they-dispute\/2013\/07\/14\/6a0953a0-e5b5-11e2-a11e-c2ea876a8f30_story.html\">Koch brothers<\/a> out of Wichita, Kansas.<\/p>\n<p>&#8220;I was informed that the Koch brothers had six or seven lawyers for a few weeks prior to the legislation being considered and that they were still trying to find ways to add little amendments here and there to bills that would try to solve the problem,&#8221; Rep. Oliveira told StateImpact Texas.<\/p>\n<p>The battle between the two powerful families prompted Rep. Tryon Lewis<a href=\"http:\/\/www.houstonchronicle.com\/business\/energy\/article\/Fight-erupts-over-common-carrier-4496695.php\"> to say<\/a> it felt like there were &#8220;a bunch of huge elephants out there bumping into each other&#8221; over the issue.<\/p>\n<p>\u201cYou had these two very large family interests,&#8221; Tom &#8220;Smitty&#8221; Smith, with Texas Public Citizen told StateImpact Texas. &#8220;The pipeline-owning Koch brothers and the landowners and oil-and-gas company Bass brothers. Fighting each other over both issues of principle and probably a significant amount of money.&#8221;<\/p>\n<p>An attempt to get a representative of the Bass family to speak on the record was unsuccessful. But a spokesperson for Koch Pipelines (a company owned by that family) did email a reply to StateImpact Texas.<\/p>\n<p>&#8220;The legislation you cite was aimed at clarifying that the regulation of common carrier pipelines falls within the jurisdiction of the Texas Railroad Commission and the local courts,&#8221; wrote Jake Reint, director of public affairs for the company. &#8220;<strong><\/strong>As the record shows, it was broadly supported by industry and not the product of any one company.&#8221;<i><\/i><\/p>\n<p>Members of both families are large donors to GOP politics, and Rep. Oliveira, who is a Democrat, said their differences of opinion mirror a division among conservatives between those who want to strengthen the oil and gas industry and those who want robust private property rights.<\/p>\n<p>\u201cThere were many Republicans that were not going to vote for Lewis\u2019s bill. So it was a very strange coalition of members that aligned on both sides, and I think that coalition is going to remain,&#8221; he said.<b style=\"mso-bidi-font-weight: normal;\"><\/b><\/p>\n<p>He said as all sides in the debate have &#8220;dug in their heels,&#8221; that there&#8217;s little hope that lawmakers will be able to rewrite the rules of eminent domain. Oliveira predicts that failure to reach an accord could have a negative impact on the Texas economy as more and more pipelines are challenged in court just as the oil and gas sector is booming.<\/p>\n<p>But even if lawmakers can\u2019t act, that doesn\u2019t mean the courts won\u2019t.<\/p>\n<p><strong><em>COMING TOMORROW: How, in the absence of a legislative solution, the courts are changing the face of property rights in Texas.<\/em><\/strong><\/p>\n<p><strong><em>Read Part One of this series\u00a0<a href=\"http:\/\/stateimpact.npr.org\/texas\/2013\/07\/15\/eminent-domain-in-texas-landowners-face-continued-uncertainty\/\">here<\/a>.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019s regular legislative session, lawmakers on both sides of the aisle filed [&hellip;]<\/p>\n","protected":false},"author":51,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[214,28,50,310],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/posts\/29725"}],"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\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/comments?post=29725"}],"version-history":[{"count":68,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/posts\/29725\/revisions"}],"predecessor-version":[{"id":29786,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/posts\/29725\/revisions\/29786"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/media?parent=29725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/categories?post=29725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/texas\/wp-json\/wp\/v2\/tags?post=29725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}