Real Estate & Property Law

Indiana Bill Provides Private Firms the Right to Take Land for CO2 Pipelines

By Alan Ackerman

Indiana Economic Digest

The measure declares that the transportation of CO2 by pipeline "is declared to be a public use and service, in the public interest, and a benefit to the welfare of Indiana," citing its potential to reduce carbon emissions and to promote economic development.

"Granting eminent domain to a private entity is reason enough, we think, to oppose this bill," said Kerwin Olson, program director for Indianapolis-based Citizens Action Coalition.

The group said the measure is to benefit Indiana Gasification, which in 2006 proposed building a $1.5 billion plant in Spencer County to convert high-sulfur coal to gas. Utilities could use the gas for heating and to generate electricity.

Indiana Gasification, which planned to sell gas to Merrillville-based NIPSCO and Evansville-based Vectren, shelved plans in late-2008 after failing to reach long-term gas supply contracts with utilities, which feared such contracts could impair their long-term credit.

The Indiana measure provides for a reasonable public use; protecting society from carbon emissions. However, the unregulated transfer of property, so that private profit-making companies can simply bring their pipelines through private property, raises severe constitutional questions.  It is unlikely that many states will allow private companies without government regulation to acquire land for the pipelines.

Full post as published by National Eminent Domain Blog on February 12, 2010 (boomark / email).