Natural Gas Pipelines

Eminent Domain Resources

The Takings Clause of the Fifth Amendment to the U.S. Constitution – “… nor shall private property be taken for public use, without just compensation.”

The Takings Clause prohibits the federal government from taking private property for public use without adequate compensation to the landowners

Eminent Domain and the Public Use Requirement

Public use is a legal requirement under the Takings Clause that does not necessarily imply actual use, but generally is identified as any project beneficial to the public, such as construction of pipelines or railroads, road widening, school expansions, etc.
In Kelo v. City of New London (2005), the U.S. Supreme Court interpreted the term “public use” more broadly to mean public purpose and held that promoting economic development qualifies as public use. Interestingly, the U.S. Supreme Court rejected the petitioners’ argument that “for takings of this kind the Court should require a ‘reasonable certainty’ that the expected public benefits will actually accrue.”

Just Compensation in Eminent Domain

Just compensation is generally calculated based on the “fair market value” of the property at the time of the taking. Some factors may be considered in determining fair market value of a property, including size of the property, accessibility, zoning, unique characteristics, level of development, current use or potential use, etc.

The Fourteenth Amendment to the U.S. Constitution – “… nor shall any State deprive any person of life, liberty, or property, without due process of law …”

The Takings Clause also applies to state and local governments through the Fourteenth Amendment.

Natural Gas Act; 15 U.S.C. §717f(h) – Right of Eminent Domain for construction of pipelines

“When any holder of a certificate of public convenience and necessity cannot acquire by contract, or is unable to agree with the owner of property to the compensation to be paid for, the necessary right-of-way to construct, operate, and maintain a pipe line … it may acquire the same by exercise of the right of eminent domain in the district court of the United States for the district in which such property may be located …”

Act of Jun. 24, 2018, P.L. 345, No. 45 – this Act amends Pennsylvania Statutes Title 26 limiting the ability to use eminent domain on certain “selected predominantly undeveloped open spaces or areas,” including farmland, parks and scenic areas, among others.