Tag Archives | natural gas

Commonwealth Pipeline

A recent Patriot News publication titled Here It Comes described the anticipated natural
gas pipeline planned to run from Lycoming County, PA, to Rockville, MD.

The article touted the anticipated lower energy prices in Central Pennsylvania. However,
other unfavorable aspects of the process are also coming to Central Pennsylvania.
The article repeatedly quoted Bill Moler, the Chief Operating Officer of the responsible
company, Inergy Midstream. He described the company’s approach of paying for
property damages in a manner in which the various owners along the route would receive
the same amount of money per foot of the right-of-way acquisition. Unfortunately, this
plan and approach to property rights is in direct conflict with the controlling Pennsylvania
law, the Pennsylvania Eminent Domain Code.

The correct approach to damages, which may be much more costly to Inergy Midstream,
is to pay eminent damages based on the fair market value of the entire property interest
before and after a condemnation. The proper approach would suggest that a peaceful
residential property would have much more significant monetary damages than a vacant
property. Property owners would be wisely cautious in dealing with a company which
seeks to avoid paying fairly for the acquisition of property rights.

Commonwealth Pipeline Plan

This post is in response to the article by Donald Gilliland which appeared in The Patriot-News: UGI’s ‘Commonwealth Pipeline’ would spread shale wealth through Pennsylvania

The planned Commonwealth Pipeline, recently announced, would bring natural gas from Lycoming County through central Pennsylvania to the Baltimore and Washington markets. It would also bring the threat of eminent domain to property owners in central Pennsylvania. Land agents for oil and gas companies recognize that they have an obligation to negotiate with property owners, but do not have any obligation of good faith negotiations. Property owners would be wise to be wary of negotiators on behalf of company designated to build and operate the pipeline – Inergy Mid-stream. That company recently proceeded with eminent domain actions against property owners in the path of the 39-mile MARC1 pipeline in northern Pennsylvania. The company used documentation of appraisals of the strips of land in negotiations and Sullivan County court filings. Those efforts and documents are in conflict with the Pennsylvania Eminent Domain Code protections whereby property owners are protected by the property damage calculation defined as the entire property interest before the taking as compared to the entire property interest after the taking. That approach will need to be considered for the property owners to adequately protect themselves and their constitutional right to just compensation.