2020-03-22

Cato: Don’t Abuse Property Rights to Build Pipelines

The demand for American energy independence and expansion of the natural gas industry have led to a marked increase in the construction of new gas pipelines. The Natural Gas Act empowers the Federal Energy Regulatory Commission to delegate to private pipeline companies the power to take private property to build these pipelines, so long as they pay the just compensation due under the Fifth Amendment. Not content with the power to begin construction after judicially authorized transfer of title, however, these companies have claimed the equivalent of government power—not mere delegated authority—by taking property before any adjudication by means of preliminary injunctions, with even fewer owner protections than statutory “quick takes” (expedited title transfers).


Karolyn and Clarence Givens had farmed their land for a decade before a pipeline company undertook to construct a 303‐​mile pipeline from West Virginia to Virginia, including a segment that would cross their property. Since Clarence’s death in 2017, Karolyn has depended on rents from the farm to maintain her income. That income has been jeopardized by an early taking, forcing Karolyn to move her cattle onto a parcel occupied by a current tenant. Like other landowners in the area, Mrs. Givens has expressed concerns over the potential environmental and safety risks posed by the new pipeline. These concerns too have been vindicated as the company’s efforts have left her farm scarred by potholes, erosion, and twisted fencing.


Courts in three federal districts have granted preliminary injunctions allowing for the possession of Givens’s land before a final determination of just compensation, subject to a bond. The U.S. Court of Appeals for the Fourth Circuit upheld these injunctions on appeal.

Read more at https://www.cato.org/blog/dont-abuse-property-rights-build-pipelines

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