House committee approves bill restricting eminent domain for NGL pipelines

By JIM BROOKS
Nelson County Gazette

Wednesday, Feb. 26, 2014, 7 p.m. — Legislation that would prevent the Bluegrass Pipeline partners from using eminent domain to acquire easements in Kentucky passed out of committee Wednesday in Frankfort with thunderous applause from onlookers.

The House Judiciary Committee passed a version of House Bill 31 that specified Natural Gas Liquids (NGLs) — the product the Bluegrass Pipeline will transport — are not defined as oil or gas products and thus are not included in allowable uses of eminent domain to secure easements.

The bill was approved by the committee in an 11-1 vote. It now moves on to the full House.

Last week, the Judiciary committee heard testimony from oil and gas industry representatives who were concerned about the legislation’s impact on oil and gas lines in the state.

Committee chairman Rep. John Tilley defended the legislation Wednesday against allegations it was singling out a single project.

“There are multiple reasons why there is legal justification and common sense justification,” Tilley told legislators. “The statutes have never contemplated natural gas liquids, and there’s much heavier risk involved with them.”

Rep. David Floyd noted that the legislation will not kill the Bluegrass Pipeline. “They’ll just not be able to use eminent domain to condemn property from those who don’t want [the pipeline] to be done.”

Testimony was limited due to the committee’s work hearing testimony on other legislation.

Landowners from other parts of Kentucky testified briefly on the bill.

Susan  Goddard, who with her husband owns property in Woodford and Franklin counties, noted the importance of the discussion on the bill in her testimony.

“The eminent domain issue will transcend what is discussed today,” she said. Landowners could find themselves tied up in court fighting eminent domain proceedings and expand the use of eminent domain for other non-public projects.

As committee members discussed the bill, Tilley reminded its members that the issue before them is a very narrow one.

“There is no public service involved in this project,” Rep. David Floyd told the committee. “They claim the right to eminent domain, which is why we need this clarification.”

Eminent domain is properly reserved for public projects like roads and utilities, Floyd said. “We justify that use, but what is the justification here? Tax revenue? Jobs? Economic development?”

He noted that Ohio has no eminent domain and the pipeline is till acquiring easements. “This won’t kill the project, but it will only force them to come to agreement with landowners or find another route,” he said.

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