Judge rules Bluegrass Pipeline has no right to use eminent domain

By JIM BROOKS
Nelson County Gazette

Tuesday, March 25, 2014, 4:30 p.m. — Franklin Circuit Court Judge Phillip J. Shepherd ruled Tuesday that businesses like the Bluegrass Pipeline do not have the power to use eminent domain proceedings to acquire easements.

Shepherd’s ruling was in response to a lawsuit filed by Kentuckians United to Restrict Eminent Domain (KURED) which sought a ruling to determine if the pipeline partners could use eminent domain to acquire easements.

Representatives for the Bluegrass Pipeline are on record stating they believe state law grants them the power to use eminent domain.

KURED argued state law does not give the Bluegrass Pipeline the right to use eminent domain. Shepherd agreed, noting that the power of eminent domain is limited, and that Bluegrass sought to “benefit from the rights conferred on regulated utilities … without subjecting itself to the responsibilities, duties and regulatory oversight.”

In his ruling, Shepherd determined the pipeline would not be a pipeline “in public service,” and its only stated purpose is to transport natural gas liquids (NGLs) through Kentucky to the Gulf Coast.

Shepherd wrote that the power to use eminent domain “cannot be delegated to private parties without a clear legislative mandate that such a delegation is in the public interest.”

The ruling states the Bluegrass Pipeline can acquire easements from property owners willing to sell them, but the company cannot invoke eminent domain “to threaten or intimidate, or even to suggest to landowners who have no desire to sell, that Bluegrass has the right to take their property without consent.”

Property owners who do not wish to sell easements to the Bluegrass Pipeline “are entitled to know the law does not support Bluegrass’ assertion of the power of eminent domain.”

The Bluegrass Pipeline LLC has the right to appeal the ruling.

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