QUESTION:
From David Smith of U.S. Right of Way: We have all heard the 2009 Texas
Legislature was very active regarding right of way and eminent domain
issues. What did they actually do?

ANSWER: One law that did pass involves pipelines and public rights of
way. This involves pipeline routing. The Texas Department of Transportation revised its prior policies and decided to oppose pipelines (existing or new) along public rights of way. H.B. 2572 (Gonzales-Toureilles,
D-Alice) establishes that oil and gas operators can install pipelines and gathering lines along a public road, railroad, railroad right-of-way, municipal road, canal, or stream. The bill also stipulates that if a pipeline must be moved (e.g., due to road construction), the state must cover the cost of the
move if the operator owns the pipeline easement. Likewise, if the state owns
the easement, the operator must pay to move the line.

Another significant law that passed involved Eminent Domain. The eminent domain process in Texas has received significant attention in the past three years, especially in North Texas and the Barnett Shale. Refining the eminent domain process was a priority for Gov. Rick Perry and it consumed considerable energy from a diverse coalition of industry and public entity representatives. As a result of a collective effort, the Legislature passed House Joint Resolution 14 (Corte, R-San Antonio), which calls for a
constitutional amendment that prohibits a governmental entity from condemning a property primarily for the purpose of economic development or enhancement of tax revenues. However, for various reasons, the
Legislature failed to pass comprehensive eminent domain reform legislation. Thirdly, through negotiations and input from various interest groups, the Legislature also passed a bill to crack down on so called “bad actors” who attempt to influence land negotiations by inappropriately threatening the use of eminent domain. H.B. 3346 (Farabee, D-Wichita Falls) makes clear that if any non-utility or right of way agent for the non-utility indiscriminately threatens eminent domain, that entity stands to lose its non-utility status.

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