Real Estate & Property Law

What Happens Once all the Easements Are Acquired?

By Alan Ackerman

This blog has previously discussed the Laser Marcellus Gathering LLC 33-mile natural gas pipeline extension. The company failed to obtain 'utility' status, meaning it did not possess the eminent domain power. Yet, in stark contrast to many other recent utility expansion projects, Laser Marcellus was able to obtain a right-of-way through voluntary purchase agreements with landowners. This raises many questions. How does the Pennsylvania Utility Commission regulate a pipeline that does not have utility status? Where there be price controls? Can the Commission enjoin the company from using the pipeline? 

Citizens Voice 

With an ambitious deadline of completing the 33-mile stretch by the end of summer, Laser Marcellus is moving forward despite failing to obtain utility status - and in turn the ability to condemn land by eminent domain. In December, Administrative Law Judge Susan D. Colwell recommended denial of Laser Marcellus' bid for utility status, saying a midstream pipeline company did not meet the definition of a utility and could conduct business without utility status or eminent domain.

Some involved with the case, including Laser Marcellus, have filed exemptions to the ruling which will be considered by the state Public Utility Commission, which will make the final decision. Historically, the commission defers to the judicial recommendation.

Despite not having eminent domain power, the company was able to secure from landowners all the easements required to complete the Pennsylvania portion of the line, said company spokesman Tom Collins. The project is expected to employ 350 construction workers and cost about $37 million.

Full post as published by National Eminent Domain Blog on February 01, 2011 (boomark / email).