Monday, May 10, 2010

Companies seek eminent domain status to lay gas pipelines

By David Falchek
citizensvoice.com
May 8, 2010

When Laurie and Brian Kaszuba of Dickson City received a $16,000 offer from a pipeline company to run a natural gas pipeline through their Great Bend property, they didn't see it as a windfall.

Having a natural gas line three feet below the surface with a right-of-way on the surface, would have made it more difficult to build their retirement home or subdivide the land. So they turned it down.

If pipeline companies eyeing the Marcellus Shale region have their way, property owners won't likely have that option.

Laser Marcellus Gathering LLC, of Houston, has applied to the Public Utility Commission to be declared a utility in Pennsylvania, a designation that would give the company the power to condemn any property it needs and to use eminent domain to obtain easements for pipelines.

The company is planning to build a 30-mile pipeline, costing about $37 million, to connect gas wells in western Susquehanna County and New York with the interstate Millennium pipeline that runs across New York state's southern tier.

The outcome of the request before the Public Utility Commission could change the way easements are negotiated. With the Marcellus gas rush well underway and millions of Pennsylvania acres leased by gas exploration companies, pipeline easements are the new wave of legalese to arrive in mailboxes throughout the Marcellus region. Susquehanna County, a hot-spot for shale gas, is destined host an underground web of pipes from every wellhead.

Unlike natural gas exploration companies, so-called "midstream" companies that gather gas have the option of becoming utilities. Several midstream companies have filed motions supporting Laser's bid.

While being treated as a utility exposes pipeline companies to a new layer of regulation, it also gives them a valuable tool that tilts negotiations with property owners in their direction, said Stephen W. Saunders, a Scranton environmental attorney.

"The company would be able to say 'negotiate with us or we'll just take your property through condemnation,'" Saunders said. "There's no requirement for a utility to negotiate at all. Eminent domain is a nice tool for a company to have in its back pocket."

Still many utilities negotiate in good faith with property owners to acquire the property outright or obtain easements. If negotiations fail, the utility may condemn the land and the matter goes to a Board of View, a quasi-judicial panel of real estate experts who determine the fair market value of the property. Chip Berthelot, president Laser Midstream, Laser Marcellus' parent company, said eminent domain is not the "overriding factor" in the company's pursuit of utility status. "We don't like to use condemnation and we do everything in our power to avoid that sort of confrontation with property owners," he said. The utility designation, he said, would require his company serve any customer, rather than being tied to one.

Meanwhile, property owners are groping their way through another type of agreement related to the acquisition of easement rights.

At most well development sites in other states, there also is right-of-way leasing, said David Messersmith, part of Penn State Cooperative Extension Marcellus Shale Team, which is providing information to the public about the industry.

Messersmith expressed a concern about that type of arrangement. "People aren't up to speed on the terms and the language of these things," Messersmith said.

A company may calculate their offer based on linear foot, by rod (16.5 feet), or by square footage, making it difficult for property owners to compare offers or determine a true market value. Rights-of-way could be anywhere from 8-to-30-feet off center. They limit land owners' activity on a significant swath of property for a lifetime or more, Messersmith said.

Some companies are blanketing the area with lease offers hoping to trade or sell rights-of-way in the future.

Laser is further along in its plans. While young, the company has an experienced management team and operates more than 80 gathering systems in Texas, Louisiana, and Arkansas. "We are exited about participating in the development of the Marcellus region," Berthelot said.

The Kaszubas challenged the Laser Marcellus' request before the PUC, but withdrew their objection when the pipeline path was rerouted around their property. They leased their mineral rights and they want to see the Marcellus region developed. But they don't trust the condemnation process.

"Under eminent domain, it doesn't matter what the property owner says or feels," he said. "People shouldn't be forced to have something on their property they don't want - at any price."

LINK

DEMAND ACCOUNTABILITY!

21 comments:

  1. If yоu are hοsting the next Pokeг pаrty at your homе,
    herе аre some great Pоkеr ρarty fοodѕ аnd Рokеr paгty dесorations that аre
    easy to make anԁ will not breаκ the bank.
    Peter Piρer Ріzza Couρons-Peter Pіpeг
    Pizza Coupons:Pеtеr Piper Pizza саn bе a familу pizzа сhain
    operating 45 company rеstаurantѕ and
    60 frаnсhises insidе thе U. Rοll еаch pогtion іnto the thickness of
    а broom hanԁlе.

    Also visit my ωeb-sitе - Public.Murl.Com

    ReplyDelete
  2. I could not гesist commenting. Well written!

    Takе a look at my ωebpagе: noimi.com

    ReplyDelete
  3. I do accept as true with all the concepts you have presented on your post.
    They are very convincing and can certainly work. Still,
    the posts are too short for novices. May you please prolong them a little from next time?
    Thanks for the post.

    Also visit my blog post Http://Www.Cplazahotel.Com

    ReplyDelete
  4. It iѕ done up from alternatiνe gгaԁеs of tiny
    mixture that have been bеfоrehаnd coated іn hot bitumen
    that acts as a binder when blended comprehensіvely with hot
    asphalt. Incredibly hot aіr balloon rides about the
    gorge are also terгiblу favored. They have lіved
    lives akin to that of great saintѕ, sages and Rіshis whο ωere bеing recognized foг theіr
    penance and austеritiеѕ.

    Viѕit my web ѕite; old stone oven

    ReplyDelete
  5. Ηi therе, I enјoy reading through your artіcle
    poѕt. I like to ωrite a lіttle comment
    to supрort you.

    My ωeb blοg; Chemietoilette

    ReplyDelete
  6. Having read this I thought it was extremely informative.
    I appreciate you spending some time and effort to put this short article together.
    I once again find myself spending a lot of time
    both reading and posting comments. But so what, it was still worthwhile!



    My web-site; Abercrombie Paris

    ReplyDelete
  7. An impressive share! I've just forwarded this onto a friend who was doing a little research on this. And he actually ordered me lunch due to the fact that I discovered it for him... lol. So allow me to reword this.... Thanks for the meal!! But yeah, thanks for spending some time to discuss this matter here on your web page.

    My web-site :: Gafas Oakley

    ReplyDelete
  8. Having read this I thought it was very enlightening. I appreciate you taking the time and
    energy to put this informative article together. I once again
    find myself spending way too much time both reading and
    leaving comments. But so what, it was still worthwhile!

    Also visit my page - Michael Kors Canada

    ReplyDelete
  9. Heya i am for the primary time here. I came across this board and I to find It truly
    helpful & it helped me out much. I am hoping to give one
    thing again and aid others like you aided me.

    Here is my blog post; Louis Vuitton Bags

    ReplyDelete
  10. Very nice post. I absolutely love this site.

    Stick with it!

    My page :: Louis Vuitton Bags

    ReplyDelete
  11. Hey! I realize this is sort of off-topic but I had to ask.

    Does building a well-established website like yours take a lot of work?
    I am completely new to blogging however I do write in my journal every day.
    I'd like to start a blog so I can easily share my experience and thoughts online. Please let me know if you have any suggestions or tips for new aspiring blog owners. Appreciate it!

    Also visit my blog post Louis Vuitton Handbags

    ReplyDelete
  12. Hello, after reading this amazing post i am as well happy to
    share my know-how here with friends.

    Also visit my web blog - Click This Link

    ReplyDelete
  13. My family always say that I am killing my time here at web,
    however I know I am getting know-how everyday by reading
    thes good content.

    Also visit my web-site - Read Full Article

    ReplyDelete
  14. This paragraph will help the internet visitors for building up new web site or even a weblog from start to end.


    Also visit my web-site ... Read More :: http://www.ifightdragons.com/ ::

    ReplyDelete
  15. Its like you read my mind! You seem to know a lot about this,
    like you wrote the book in it or something. I think that you can do with
    a few pics to drive the message home a little bit, but instead of that,
    this is excellent blog. A great read. I'll certainly be back.

    My webpage ... More Info

    ReplyDelete
  16. Way cool! Some very valid points! I appreciate you penning this
    post and also the rest of the site is really good.

    my blog; frankrijk vakantiehuisjes

    ReplyDelete
  17. Hi, every time i used to check web site posts here early in the morning,
    for the reason that i enjoy to learn more and more.

    Here is my webpage :: luxe vakantiehuisjes huren

    ReplyDelete
  18. That is really interesting, You're an excessively professional blogger. I have joined your feed and sit up for in search of more of your excellent post. Also, I have shared your website in my social networks

    Feel free to surf to my web blog ... Cheap NFL Jerseys

    ReplyDelete
  19. Wonderful article! That is the type of information that should
    be shared around the net. Disgrace on Google
    for not positioning this submit upper! Come on over
    and talk over with my web site . Thanks =)

    Also visit my web-site :: Officiel Louis Vuitton Site

    ReplyDelete
  20. Howdy! I just wish to give you a huge thumbs up for your excellent information
    you have got right here on this post. I'll be returning to your web site for more soon.

    Visit my site: Sac Louis Vuitton

    ReplyDelete
  21. I was able to find good advice from your blog articles.


    Here is my page; luxe vakantiehuizen ()

    ReplyDelete

RURAL IMPACT VIDEOS, 6 parts

Natural gas development in Colorado, the impacts on communities, environment and public health. A primer for public servants and residents of counties that care for their lifestyles.

Drilling for Gas in Bradford County, PA ... Listen!

Cattle Drinking Drilling Waste!

EPA... FDA... Hello? How many different ways are we going to have to eat this? ... Thank you TXSharon for all you do! ... Stay tuned in at http://txsharon.blogspot.com

Landfarms

A film by Txsharon. Thank you Sharon for all you do. Click HERE to read the complete article on Bluedaze: Landfarms: Spreading Toxic Drilling Waste on Farmland

SkyTruth: Upper Green River Valley - A View From Above