In many situations, and most states, eminent domain is a power that is only used by the government. It can be exercised when the government is doing something considered beneficial to the public. For instance, the government may use eminent domain to claim private property for the construction of an interstate highway extension or a local military base.
In Texas, though, landowners have less freedom than they would elsewhere. Texas extends eminent domain rights to energy companies, often when they’re creating pipelines. This is allowed due to forms provided by the Railroad Commission of Texas. If a company is building a pipeline, there’s a checkbox that allows them to declare themselves a common carrier. This means that the construction of the pipeline is being done in the public interest, and the company then can use eminent domain to take private property for that construction.
Navigating a complex process
Many private landowners, naturally, are unhappy with this arrangement. They may believe that commercial enterprises shouldn’t be able to take their private property just to make money. But as long as the government authorizes this type of use in the energy sector, it’s going to continue happening.
As such, landowners need to understand exactly what steps to take. One of the biggest issues is seeking fair compensation for the property based on the current market price. Many disputes around eminent domain revolve around the offered payment, as landowners may claim that they are not being provided the compensation they would get if they sold the property to a third party.
Questions may also arise regarding which companies are allowed to use eminent domain and when it applies. Those working through this process must understand all the legal options at their disposal.
