Proposed CO2 Pipelines Aim to Cross Through NW Iowa Farms What Are Your Rights as a Landowner?
February 11, 2022 | By Bryan E. Shusterman
To build a hazardous liquid pipeline, companies must obtain a permit from the Iowa Utilities Board under Iowa Code § 479B. Pipeline companies granted a pipeline permit “shall be vested with the right of eminent domain, to the extent necessary and as prescribed and approved by the Board.” Iowa Code § 479B.16. In making its decision, the Board will weigh whether the pipeline will “promote the public convenience and necessity.” Iowa Code § 479B.9. This is a broad standard that favors pipeline companies over landowners.
In the previous case involving the Dakota Access pipeline, the Iowa Supreme Court held that the Iowa Legislature had vested the Board with the authority to interpret the statutory meaning of “public convenience and necessity.” The Court also upheld that the Utilities Board’s balancing test could include “public benefits inside and outside of Iowa” including generalized efforts to reduce the effects of climate change and economic benefits in the form of new jobs and tax revenues throughout the state. These “widespread” and “aggregate” benefits are then weighed against the individual harms of each affected landowner. Puntenney v. Iowa Utilities Bd., 928 N.W.2d 829, 834 (Iowa 2019).
Based on Iowa’s current statues and caselaw, it is very likely that the Utility Board will grant these companies the right to acquire easements through eminent domain in exchange for “just compensation” if they are unable to obtain the easements through voluntary agreements. Landowners should operate under the assumption that the Summit Carbon and Navigator pipelines will be permitted, barring dramatic changes in circumstance.
If you have been approached by either Summit or Navigator and offered a voluntary easement agreement, contact our offices so that we can help you understand their proposed terms and negotiate together with you to ensure that your rights and interests are protected. Working with our experienced agriculture and contract attorneys to negotiate and draft a customized voluntary agreement will serve to better protect your land and its productivity, especially compared to the default terms of an easement forcibly granted by eminent domain.
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