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Real Estate & Property Law

: National Eminent Domain Blog

Detroit Heavy Oil Upgrade Project

By Alan Ackerman

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Monroe News, September 22, 2007

The old real estate maxim is proving itself once again - this time when it comes to installing an oil pipeline.

Although some property owners don't want any kind of expanded oil pipeline running through their yards, others are okay with it - sort of.

For Gary Doubler, location has been the sticking point in his negotiations with Marathon Petroleum on behalf of his in-laws' farmland in Frenchtown along N. Custer and Raisinville Rds.

The project is being referred to as the Detroit Heavy Oil Upgrade Project (DHOUP) and would run from Samaria up to Detroit.

At this point, the project is proposed; no definitive plans have been secured. The new line would follow an existing line about 70 percent of the time. The other 30 percent of the time, it would run near the existing line but has had to be rerouted in places because of easement requirements.

The new line would be a wider (24-inch) pipe that would allow more viscous Canadian crude to flow.

Chris Fox, spokesperson for Marathon Oil on the DHOUP project, said the company has been in communication with all of the property owners along the route and has been working to secure the easements since last summer.

Deborah Brown, who owns land in Frenchtown, said the money Marathon was offering was laughable.

Ms. Fox said the company still is committed to working openly with people.

-The real problem is the pipeline right of way agents are negotiating either knowingly or negligently proceeding. This is becuase there is a very specific legal process in Michigan which requires that an appraisal or statement of value be provided to an owner prior to negotiation and purchase. The oil company agents are violating a condemnation procedure intended to protect owner’s whose properties may be take for public use in this State! I understand the process may be different in Oklahoma, but that does not mean the lack of knowledge of our fair procedure should bar owners of their rights.

Full post as published by National Eminent Domain Blog on September 23, 2007 (boomark / email).