Situation 02
Understand how property acquisition through eminent domain begins, who is allowed to do it, and what is actually being asked for.
The first question in any Texas acquisition is who holds the power. Governmental entities do. So do certain private entities the Legislature has authorised, including common carrier pipelines and electric utilities.
For a private company, that authority can be tested. Under Texas Rice Land Partners v Denbury Green Pipeline, a pipeline does not become a common carrier by checking a box on a permit application. There must be a reasonable probability the line will serve the public by transporting product for one or more customers who will retain ownership.
These are different transactions and they are valued differently.
Width, depth of cover, access routes, repair obligations, crossing rights and future line rights are all terms. On a working property they are frequently worth more than the difference between two offers.
An entity with the power must still follow the procedure. Initial written offer, then a final offer on or after the thirtieth day, supported by a certified written appraisal, at or above that appraisal, with fourteen days to respond. If there is no agreement it files a petition, the court appoints three special commissioners, and they hold a hearing and set an award.
Common carrier status is a question that can be tested in Texas.
See Pipeline ProjectsStart with your situation
Learn what the notice may mean and what information you may want to review.
ExploreSituation 02Understand how property acquisition through eminent domain may begin.
ExploreSituation 03Explore questions related to property valuation and compensation.
ExploreSituation 04Learn about issues property owners may consider when they disagree with an offer.
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Common questions
You can decline an offer. If the entity holds the power and follows the procedure it may file a petition, and the case then decides the amount rather than whether the taking happens.
Certain authorised private entities can, including common carrier pipelines and electric utilities. Whether a particular company qualifies for a particular line can be challenged.
Neither is automatically better. An easement leaves you holding title and paying taxes on land you cannot fully use, so the terms decide whether it is a good outcome.
Only what is necessary for the project. The scope of what is sought, and whether it exceeds what the project needs, is a fair question to raise early.
Next step
Find out who is asking, what they want, and what you can still shape.