Consumers Power is seeking easements to facilitate construction of a new natural gas pipeline. Consumers’ promotional material includes a map of the route and indicates that it will be constructed in two phases.
Consumers’ project was approved by the Michigan Public Service Commission. The MPSC’s website includes an online docket where their Opinion can be found. That Opinion approves the project as a whole, the route proposed by Consumers subject to minor deviations, and authorizes construction of a “36-inch outside diameter pipeline.”
MCL 213.56(3) will limit challenges to the construction of this project because courts must defer to the findings of the MPSC. “Except as otherwise provided in this section, with respect to an acquisition by a private agency, the court at the hearing shall determine the public necessity of the acquisition of the particular parcel.The granting of a permanent or temporary certificate by the public service commission or by a federal agency authorized by federal law to make determinations of public convenience and necessity as to condemnation constitutes a prima facie case that the project in furtherance of which the particular parcel would be acquired is required by the public convenience and necessity. The granting of a certificate of public convenience and necessity by the public service commission pursuant to the electric transmission line certification act, Act No. 30 of the Public Acts of 1995, being sections 460.561 to 460.575 of the Michigan Compiled Laws, is binding on the court.” However, to the extent that Consumers seeks rights that are beyond the project approved by the MPSC (for example, the right to construct multiple pipelines or to expand the size of the pipeline), property owners could challenge the necessity of the acquisition of those rights.
Pipeline easements can have significant impacts on property values. Factors that must be considered include restrictions on development caused by easement building limitations, reduction in value caused by removal of vegetation, zoning issues, crop loss caused by compaction or other construction impacts, and market reluctance to purchase property encumbered by an easement. The impacts are unique and must be evaluated on a property by property basis.
I have handled many pipeline projects impacting a variety of properties, including challenging the scope of easements and just compensation. For example, I have successfully challenged attempts by pipeline companies to acquire excessive rights when compared to the project being constructed. I have also obtained significant increases in just compensation. Please feel free to contact me if you are being targeted for an eminent domain acquisition.