KELO's Ben Dunsmoor stirs some coals over the Transcanada oil pipeline, reporting that the Canadian corporation might turn to eminent domain to get the land it needs to run its pipeline across South Dakota. "They have the right to use [the land]," says Freeman farmer Mike Schultz, for whose land Transcanada has made an evidently unsatisfactory offer, "bu I would say they would be a lot better off if they could make 75 to 80 percent of the people happy."
Toughen up, Farmer Schultz! We can push Transcanada harder than they that. Transcanada isn't the government; it's a foreign company. It has no right to eminent domain. I would say they need to make 100% of the landowners along the proposed corridor happy or move their pipeline elsewhere. South Dakota is under no obligation to make this pipeline happen or help Transcanada minimize its costs. Eminent domain is only for projects that serve the public good, not private development, and I have yet to see how a pipeline through the state makes life better for South Dakotans. It's not like we'll suddenly see more oil in our state; it all gets pumped to Illinois. The pipeline won't increase anyone's land values or tax revenue. As Schultz points out, farmers would lose profitable land. The pipeline doesn't improve South Dakota's quality of life one iota; it just sends oil to Illinois and money to Canada.
I wouldn't worry about eminent domain on this one. In reaction to the Supreme Court's 2005 Kelo v. New London decision, the 2006 South Dakota Legislature passed HB 1080, which prohibits the use of eminent domain "For transfer to any private person, nongovernmental entity, or other public-private business entity." (The bill passed nearly unanimously, with just one nay in the House.) If anyone can show me how Transcanada is exempt from this law, I'll welcome the correction. But KELO seems to be raising a little ruckus that simply can't arise. The pipeline is a private business venture, not a highway, not a public utility. The state should see no benefit in and no legal basis for taking land out of the hands of farmers and putting it into the hands of a foreign company.
But wait! The Huron Plainsman, that bastion of better journalism, explains the situation in a bit more detail: "Eminent domain allows the taking of private property for public use, in exchange for just compensation to landowners. State law gives pipeline companies that are acting as 'common carriers' the right of eminent domain, and TransCanadas lawyers say the proposed pipeline meets the 'common carrier' definition" [AP, "Eminent Domain a Possibility for Pipeline," Huron Plainsman, 2007.06.29].
ReplyDeleteIf Transcanada starts playing hardball with farmers along the pipeline route, let's see if some of our lawyers can explain how this law squares with the 2006 eminent domain law. Transcanada may still get to play this card, since it isn't taking ownership of the land, but merely getting easements allowing construction of and access to the pipeline.
Hey, we are west of the proposed pipeline. If the company can't get the line built where they want it, come on over. We'd welcome some easement money to cross our land.
ReplyDeletePeople scream about the cost of oil and gas, but no one wants anything done to make more oil available within our own country, i.e. no drilling in Alaska, no new wells within sight of Kennedy's lake home, no this, no that.
I've seen the Alaskan pipeline and walked under it. Our guide said that when it was built there was a hullabaloo that it would hurt wildlife, but turns out the wildlife love it and stay near it in the winter as it somewhat warmer there.
Anyway, come on over Transcanada. You can cross our land anytime!
That's the spirit, Nonnie! I love a marketplace filled with willing buyers and willing sellers. If we're going to have capitalism, let's keep it pure. If we can avoid government coercion, we should! Be sure to call Transcanada and let them know you've got land and a price!
ReplyDeleteOh, by the way, if we have to do something to make more oil and gas available to earn the right to scream and holler about high energy prices, I hope my efforts have bought my hollering ticket. I'm riding a 90-mpg scooter back and forth to Brookings, and I've qut my job and taken up studies at DSU in part so I can ride my bike to work more often. I'm saving dozens of gallons of gas so folks can burn them up driving their SUVs 80 miles an hour on dry pavement.
Wildlife like those warm pipelines? Those animals sound like a bunch of freeloading immigrants to me.... ;-)