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Category Archives: Pipelines

Shell’s Ho-Ho Pipeline Ruptures in Jefferson County, Texas

11 Tuesday Mar 2014

Posted by texascondemnation in Pipelines, Property Rights, texas condemnation, texas eminent domain

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Channelview, Condemnation, Eminent Domain, Houma, Houma-to-Houston, leak, Louisiana, pipeline, Port Neches, Shell, texas eminent domain, Zawhr

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A construction crew “accidentally pierced” Shell’s pipeline on Thursday afternoon, resulting in a 364 barrel oil spill on a property in Port Neches, Texas near the intersection of Highway 136 and Interstate 366 (about 100 miles east of Houston). Emergency crews were deployed to the scene and are using absorbent booms to contain the oil. The scale of environmental damage to the property is not immediately known.

The Houma-to-Houston line transports 360,000-barrels-per-day from Port Neches and terminates in Houma, Louisiana. Last year, Shell completed a reversal of the pipeline’s flows. It now carries oil from Texas to Houma. Shell discovered another leak near one of the pipeline’s pumping stations in Channelview, Texas, in February.

These types of risks must be considered when property is condemned for a pipeline. As the Texas Supreme Court explained in Zwahr, eminent domain is the property owner’s one-and-only chance to be made “whole.”

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TexasEminentDomainLawyer.com

02 Monday Dec 2013

Posted by texascondemnation in JMEH Law News, Pipelines, Power Lines, Property Rights

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Billboard Valuation, Texas condemnation lawyer, Texas eminent domain case law, Texas Eminent Domain cases, Texas eminent domain law, Texas eminent domain lawyer, TexasEminentDomainLawyer.com

We are excited to announce the launch of our new blog, TexasEminentDomainLawyer.com!  This blog will provide case law updates and summaries on recent eminent-domain decisions in Texas.

TexasEminentDomainLawyer.com

We invite you to enjoy our recent posts summarizing pipeline cases.  We will be adding summaries of new billboard valuation cases soon.  TexasCondemnation.com will continue to provide breaking news and commentary on Condemnation and eminent domain issues.

 

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Tesoro Logistics Responsible for Recent Oil Spill, Landowner to Receive Compensation for Damages

24 Thursday Oct 2013

Posted by texascondemnation in JMEH Law News, Pipelines, Politics, Property Rights, Uncategorized

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Condemnation, Eminent Domain, Keystone, Keystone Pipeline XL, landowner rights, Landowners, North Dakota, oil, Oil Spill, pipeline, property rights, Tesoro, Tesoro Corp, Tesoro Logistics, Texas

A Texas-based oil company discovered a leak in one of its pipelines in North Dakota after a local farmer reported it to ND officials on Sept. 29, but the oil company did not spill this news until 11 days after discovering the pipeline rupture that released an estimated more-than 20,000 barrels of crude oil.

State officials initially reported a 750-barrel spill that the company in question, Tesoro Logistics LP, did not publicize because of the smaller initial estimate and what it considered to be a lack of environmental damage.

Kris Roberts, an environmental geologist with the North Dakota Health Department, was quoted in a New York Times article stating that Tesoro officials reported the spill to the state within 24 hours of first discovery and that the state does not have to release information of all oil spills publicly.

While Tesoro responded to the spill promptly, the cleanup process could take a couple of years and will cost an estimated $4 million. The local wheat farmer, Steve Jensen, who notified the State Department of Health of the oil spill after seeing crude oil coating the wheels of his combine, will also receive compensation for damages to his field that could keep his wheat crops out for a couple of years.  He and Tesoro are negotiating a settlement in regards to this matter.

The spill seems to have originated from a hole — about a quarter-inch in diameter — in a segment of the 20-year-old pipeline originally built by BP in 1993 but purchased by Tesoro in 2001, according to Reuters. The pipeline runs 35 miles within the state.

Many people have criticized Tesoro for not detecting the spill of about 20,600 gallons over 7.3 acres, or the equivalent of seven football fields according to the NYT, and the spill comes during an oil boom for the state following its 1951 discovery of oil. This spill surely will not help mitigate those concerned about the much larger Keystone XL pipeline expansion that will cross international borders and include 1,700 new miles of pipeline if approved. The Keystone Pipeline did not see its day in Congress during the debt-ceiling debates, and a decision on its expansion will likely not come until 2014.

TransCanada, the company heading the Keystone project, Tesoro Corp. and other pipeline owners cannot afford to slack on detecting leaks under the current political climate. These companies must employ vigilance and preemptive measures to mitigate environmental concerns and to protect landowners like Jensen whose income depends on the land surrounding oil pipelines.

Coauthored by Justin Hodge and Ayla Syed.

Note: Tesoro Logistics LP is a partnership formed by Tesoro Corp. 

To read more about the spill, please click here.

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With the Keystone decision looming, will the President propose a quid pro quo?

03 Monday Jun 2013

Posted by texascondemnation in Pipelines, Politics

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Environmentalists, Keystone XL, New York Times, Pipelines, politics, President Obama, TransCanada

To many, the ultimate approval of the Keystone XL pipeline project is inevitable. Environmentalists and oil and gas advocates have long been engaged in a heated debate that has narrowed its focus to TransCanada’s Keystone XL pipeline.

Here are a few of President Obama’s options: a) approve the pipeline and offer an energy-efficient tax incentive or alternative energy goal proposal for the future; b) approve the pipeline and disregard the cries of environmentalists; c) strike the pipeline and disregard upset oil and gas investors that are likely to pursue the pipeline’s construction anyways; d) strike the pipeline and offer some kind of proposal to alleviate what to advocates of traditional energy forms would seem like an utter crisis; e) indefinitely postpone the decision entirely. The problem with creating an additional proposal to his decision to strike or approve the pipeline is that it would require approval from Congress, which we all know has been facing much difficulty seeing eye to eye. Regardless of the path President Obama chooses, someone is bound to be upset; such is the nature of dramatic once-in-a-term decisions like this. Because of the opportunity’s rarity, the decision to keep or remove the contentious pipeline will leave a lasting impact on how the Obama legacy will be perceived. What is left undeciphered now is through which lens the President’s term will be remembered – will he be envisioned as the environmental advocate or the oil and gas subjugate?

To read about additional possible outcomes of this contentious debate, please click here.

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EPA releases harsh review of Keystone XL environmental report

23 Tuesday Apr 2013

Posted by texascondemnation in Pipelines, Property Rights

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Condemnation, Eminent Domain, EPA, Keystone pipeline, Pipelines, property rights, TransCanada

The Keystone pipeline debate continues. In a letter to State Department officials, the EPA made objections regarding greenhouse gas emissions, pipeline safety and alternative routes. The EPA said it had “Environmental Objections” to the State Department’s environmental assessment due to “insufficient information. ”

Read the EPA’s letter here.

To read more about this article, click here.

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Arkansas Pipeline Rupture Amplifies Keystone Opponents’ Arguments

08 Monday Apr 2013

Posted by texascondemnation in Pipelines

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Arkansas, ExxonMobil, Housing, Keystone XL, Pegasus, Pipelines, property rights, property value, TransCanada, USA Today

In a small town outside of Little Rock, Arkansas, ExxonMobil’s Pegasus pipeline ruptured over 19,000 barrels of a mixture of Canadian crude oil and water. More than twenty residents of the town were forced to evacuate from their homes, and according to USA Today, they may be forced to refrain from reentering their homes for another month. See below for what an oil spill might look like in your backyard. Property owners who recently put their home up for sale rightly worry about a decline in market value due to the spill. About a mile from the location of the spill is Lake Conway, just three miles north of the Arkansas River. While ExxonMobil claims the oil did not flow into these bodies of water, some residents saw the oil spilling into storm drains on the street.

No doubt, the flames of those opposing the contentious Keystone XL Pipeline have been fanned, creating worry and discomfort about the installation of a pipeline intended to transfer 800,000 barrels of Canadian crude oil across the nation. Adding to the growing list of unexpected oil spills in Kalamazoo and Yellowstone makes the TransCanada’s claims in favor of the security of the Keystone XL Pipeline seems doubtful.

Will the current administration rule in favor of landowners or forsake the risks of property damage for industrial capital? The Globe and Mail says the President is expected to make a decision this summer. For now, we can only wait.

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Land Battles Rise as U.S. Eyes 450,000 Miles of New Pipe

04 Monday Feb 2013

Posted by texascondemnation in Pipelines, Property Rights

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Bloomberg, Condemnation, Eminent Domain, Good Faith, just compensation, Kelo, Landowners, Pipelines, property rights, Texas

“It’s increased at a level I’ve never seen in the past 10 years.”

To read the full article, please visit Bloomberg.com

As the United States endeavors to leverage its economic and energy independence, a rising tide of private companies advocating for miles of pipeline to the moon and halfway back leave many landowners between a rock and a hard place. Since the famous 2005 Kelo decision where eminent domain rights were granted to a private corporation for private gain, Texas courts have taken small efforts in increasing the volume of the landowner’s voice. With about 95% of eminent domain cases settling outside of court and every state exemplifying its own set of guidelines to regulate and standardize these proceedings, landowners are finding new ways to challenge the existing modus operandi. In Texas, this has led to the 2011 requirement that condemners provide a “good faith offer” to landowners along with full appraisal reports indicating the derivation of the offer. Additionally, a greater emphasis has been placed on respecting the landowner. Still, there is a lot of work to be done to ensure just compensation.

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Texas Man Attempts to Take a Personal Stand Against Keystone XL Pipeline

28 Friday Dec 2012

Posted by texascondemnation in Pipelines, Property Rights

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Amy Jaffe, Attorneys, David Daniel, Denbury, Keystone XL Pipeline, Landowners, Law, NPR, property rights, texas eminent domain, TransCanada, UC Davis, Winnesboro

Energy experts like Amy Jaffe from UC Davis see oil and its consumption as a lifestyle that we have adopted. In order to maintain this lifestyle, energy infrastructure is vital for the public good. Landowners facing an eminent domain battle with TransCanada and its Keystone XL pipeline don’t exactly agree, especially when the infrastructure costs them their homes. David Daniel owns a 20-acre plot outside of Winnesboro, Texas whose defense has taken extraordinary heights. Eight stories high, in the trees that surround the condemned land, is Daniel’s platform for a last stand. As a carpenter, Daniel did what he knew best. His “airborne fortress” is a series of seven treehouses connected by cables and ropes spanning 500 feet. TransCanada’s daily aerial surveys caught Daniel in action and sued him, eventually forcing a settlement in favor of the company.

Although Daniel’s action was in some ways like Custard’s Last Stand, Texas property owners are not without some remedy to stop pipelines made solely for private use. The Texas Supreme Court has allowed landowners a “Denbury” challenge, which, if successful, could potentially shut down an entire pipeline. Or, at the very least, allow landowners like Daniel to test the pipeline’s right to be on their property. Texas eminent domain law is unique and it is very important for landowners to consult with attorneys who focus in this area.

To read more about Daniel’s fight, please click here..

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Business Keystone XL foes say fed study should consider climate effects

24 Monday Dec 2012

Posted by texascondemnation in Pipelines, Property Rights

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Condemnation, Eminent Domain, Keystone XL, oil, Pipelines, property rights, tar sands, Texas, TransCanada

The Keystone line continues to be a political lighting rod after the presidential election. While the Federal emission challenges demonstrate yet another reason for the line’s harmful effects, the real issue will be whether Keystone – aka Seaway in Texas – will stop offering below market values to property owners. The product they are flowing through the line will most certainly cause future buyers to have concerns with the property impacted by the line.

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A Split Decision – Two Sides of the Same Pipeline

05 Monday Nov 2012

Posted by texascondemnation in Pipelines, Property Rights

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East Texas, Environmental Protection Agency, EPA, Gabe Cordova, Keystone XL, Marshall Treadwell, pipeline leak, Pipelines, property rights, texas eminent domain, TransCanada

When it comes to the construction of TransCanada’s Keystone XL Pipeline in East Texas, landowners have a split opinion. While people like Gabe Cordova recognize the dangers in the type of oil proposed to be transferred through the pipeline in his backyard, there are others like Marshall Treadwell who are not bothered by the presence of another pipeline on their land through an existing energy carrier. So is it resignation that allows for this acceptance? As a landowner, you have the right to fight back and attain just compensation in the Texas eminent domain process. TransCanada may offer a few thousand for your land, but is that enough to compensate for the continuous and daily fear of the potential hazards a pipeline transporting oil from tar sands? A 2010 crude oil pipeline leak in Michigan cost over $800 million to clean up, according to the Environmental Protection Agency. In addition, more than 300 people faced health problems because of this same leak. TransCanada may claim its new pipeline is less likely to leak, but even the printer in your office stops working just when you least expect it. There will always be two sides to an issue; it’s whether you’ve asked all of the right questions that will determine on which side you stand.

To read more about Cordova and Treadwell, visit here..

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Luke Ellis and Justin Hodge are partners with Marrs Ellis & Hodge LLP. Justin heads the firm's eminent domain practice in the Houston office. Luke heads the firm's eminent domain practice in the Austin office. Luke Ellis is widely recognized as one of Texas’s top young lawyers—and one of the top lawyers of any age practicing in the area of eminent domain. Mr. Ellis has broad experience and has enjoyed success in many types of civil litigation. Justin Hodge is a trial lawyer who represents Texas landowners in condemnation, eminent-domain, and real-estate lawsuits. He represents landowners in condemnation proceedings, not the governmental authorities or private companies taking property. Mr. Hodge has handled complex condemnation and eminent-domain cases throughout the State of Texas. If you have questions about any of the issues raised in this blog, we invite you to discuss them with us at jhodge@mehlaw.com or lellis@mehlaw.com.

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