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EMINENT DOMAIN

August 3, 2012. EMINENT DOMAIN. Legislative and Legal Update. Senate Bill 18 Senator Estes (Representative Geren). Comprehensive Eminent Domain Reform Good faith negotiation before condemnation Improved Compensation Better Notice and Information to Property Owners Public Use

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EMINENT DOMAIN

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  1. August 3, 2012 EMINENT DOMAIN Legislative and Legal Update

  2. Texas Farm Bureau Presentation

  3. Senate Bill 18 Senator Estes (Representative Geren) Comprehensive Eminent Domain Reform • Good faith negotiation before condemnation • Improved Compensation • Better Notice and Information to Property Owners • Public Use • Applies to all Condemning Entities • Comptrollers list of Condemning Entities Texas Farm Bureau Presentation

  4. Senate Bill 18Disclosure of Information • Condemning entity to disclose all appraisals within last 10 years at time of offer • Property owner to disclose all appraisals • Tenth day after receipt of appraisal • Third business day before special commissioners hearing • No confidentiality provision in offer • Inform property owners they have the option to discuss or keep confidential Texas Farm Bureau Presentation

  5. Senate Bill 18Bona Fide Offer • Initial and Final Offer in Writing • Final Offer 30 days after initial offer • Before final offer obtain appraisal • Final Offer equal to or more than Appraisal • Provide Landowners Bill of Rights • 14 days to respond to final offer • Attorney fees and abate suit if no bona fide offer Texas Farm Bureau Presentation

  6. Senate Bill 18Compensation • Impairment of Direct Access to remaining property • Valuation to gain access • Valuation when access lost • Relocation Costs Required Texas Farm Bureau Presentation

  7. Senate Bill 18Special Commissioners Hearing • Each party allowed to strike one commissioner • Judge appoints a replacement • Special commissioners may not schedule hearing for 20 days after appointed • Notice to parties must be at least 20 days before hearing Texas Farm Bureau Presentation

  8. Senate Bill 18Ten Year Buy Back Provision • Notice given to property owners at acquisition • No actual progress on project 10 years or the public use for the project no longer exists • Original property owner repurchase property at the price paid when condemned Texas Farm Bureau Presentation

  9. Senate Bill 18Roads on Oil and Gas Pipeline Easements • Property owner may construct roads across oil and gas pipelines acquired by eminent domain • Cross at 90 degrees • 40 foot width • May not Violate pipeline regulations • May not Interfere with operation and maintenance • 30 day notice to easement owner for asphalt for concrete roads Texas Farm Bureau Presentation

  10. Senate Bill 18Governmental Entity Eminent Domain Procedures • Authorize condemnation by a record vote • Include as agenda item in public notice • Motion authorizing condemnation made in wording similar to language in statute • General area affected is sufficient if it gives reasonable notice to affected property owners Texas Farm Bureau Presentation

  11. Senate Bill 18Comptrollers List • Allentities with eminent domain authority • Submit letter to Comptroller • Stating the entity has eminent domain authority • Identifying provision of law granting authority • December 31, 2012 deadline • Eminent Domain authority expires September 1, 2013 if no letter submitted Texas Farm Bureau Presentation

  12. Senate Bill 18Property Owners Perspective • Level the playing field • Realize importance of oil, gas and utilities • Property owners not subsidizing projects • Want entities to work with them to make painless as possible • Remember – landowners do not ask to be involved projects come to them Texas Farm Bureau Presentation

  13. Enbridge Pipeline (East Texas)v. Avinger Timber • Texas Supreme Court • Gas processing plant in operation 30 years on leased property • Pipeline company bought plant and condemned property offering $35,000 • Avinger won in trial court and 6th Court of Appeals (Texarkana) affirmed $21 million Texas Farm Bureau Presentation

  14. Texas Rice Land Partners v. Denbury Green Pipeline-Texas Texas Supreme Court - March 2, 2012 • CO2 Pipeline from Mississippi to Texas • Cannot just check the box to be Common Carrier • Evidence allowed to prove common carrier status Texas Farm Bureau Presentation

  15. LaSalle Pipeline v. Donnell Lands Texas Supreme Court • Natural gas pipeline McMullen County • Trial Court awarded • $34,533 Permanent easement • $19,206 Temporary workspace easement • $604,950 Diminution in value to remainder Texas Farm Bureau Presentation

  16. LaSalle Pipeline v. Donnell Lands • 4th Court of Appeals (San Antonio) • Reduced award by $12,804 for temporary workspace easement • Upheld award of $604,950 for diminution in value to the remainder • LaSalle’s complaint on appeal – Legally or factually sufficient evidence • Appealed to Texas Supreme Court Texas Farm Bureau Presentation

  17. Texas Land and Resource ManagementInterim Hearings • Interim Hearing in Texas House - July 23rd • LaSalle Pipeline v. Donnell Lands • Texas Rice Land Partners v. Denbury Green Pipeline-Texas • Protecting private property rights during eminent domain • Pipeline companies transporting “to or for the public for hire” Texas Farm Bureau Presentation

  18. QUESTIONS?Regan Beck(254) 751-2547rbeck@txfb.org

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