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Tag Archives: oil

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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$604, 950 Jury Award for Pipeline Damage Affirmed, Texas Supreme Court Denies Petition in San Antonio Court of Appeals

08 Monday Apr 2013

Posted by texascondemnation in Uncategorized

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Donnell Lands, Eagle Ford Shale, Eminent Domain, gas, LaSalle Pipeline, oil, Pipelines, Property Laws, property rights, San Antonio, Texas Supreme Court

In some condemnation proceeding involving pipelines, three types of damages can potentially be taken into consideration: 1) the permanent damage caused by the presence of the pipeline; 2) the temporary damage caused by the laying out of the pipeline; and 3) the remaining lands’ diminution of value. In LaSalle Pipeline, LP v. Donnell Lands, LP, the landowner was initially offered a special commissioners’ award of $19,026 in compensation for the temporary workspace easements, $34,533 for the permanent easements, and $604,950 for the diminution of value to the remaining property. LaSalle Pipelines appealed, arguing for insufficient evidence as to the amounts awarded for the temporary easements and the remaining property.  Additionally, LaSalle argued that two of the jury members had a preexisting bias in favor of Donnell Lands. The Court of Appeals ruled the following: 1) the jury did not err in its $604,950 award for the diminution of value to the remaining property; 2) the expert appraisals’ methods were sound; 3) the trial court did err in its award for temporary workspace damages, reducing the award to $6,402; 4) LaSalle failed to establish venire members’ existing bias.

The implications of this case are quite large. With the growing number of condemnation cases in the Eagle Ford Shale area, pipeline companies are now obligated to provide compensation for the damage done to the remainder of the condemnee’s land. Not only does this alter the general predictability of eminent domain cases in Texas, it also implies gradual shifts towards increasing the value of the landowner’s voice.

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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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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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