RANCHING Business
Be Proactive When It Comes to Eminent Domain By Gilda V. Bryant
J
UST THINKING ABOUT THE TAKING OF PRIVATE PROPERTY BY eminent domain is gut-wrenching for even the most seasoned rural landowners and ranchers, and for
good reason. Although, historically it has been a rare event in ranch and farm communities, during the last decade oil and gas companies have invoked eminent domain, causing havoc for ranchers and other property owners. What is eminent domain and how can cattle raisers make the best of a bad situation? It is the legal taking of private property for a public
use with just compensation. This process has been a tradition in the U.S., and our founding fathers made sure it was mentioned in the Fifth Amendment to the U.S. Constitution. Their intent was to ensure both due pro- cess and just compensation for private property owners. The federal government does not usually get involved
in eminent domain except for interstate highways and other large projects that cross state lines. The states regulate and consent to this procedure, so
rules and regulations vary from state to state. For instance, the Fifth Amendment mentions that
an individual may receive just compensation for pri- vate property taken for public use. In Texas, the term “just compensation” has been changed to “adequate compensation.” John F. Baum, Ph.D., consultant with the Texas
66 The Cattleman March 2016
Christian University (TCU) Energy Institute, business- man, rancher and royalty owner, says that eminent domain has traditionally been used by state and local organizations, such as cities or counties. They had to acquire right-of-ways for streets, high-
ways or public buildings — improvements that were in the public interest. The most common entities using eminent domain for public use are cities, land develop- ers, railroads, public utilities and oil and gas companies. The wind farm industry has also entered the fray. “It’s only been in fairly recent times that eminent
domain has become a big issue in the agriculture com- munity,” Baum explains. “That’s largely because of the oil and gas production that we’ve seen, particularly in the last 10 years or so.” For example, President Obama has vetoed legislation
to allow construction of the Keystone Pipeline. However, Canadian TransCanada Corporation has successfully condemned land along the proposed route in anticipa- tion of completing this project.
Beginning the process How does the eminent domain process begin? A
pipeline company decides to lay a pipeline to carry petroleum products across private land. The company will offer to pay the landowner for a right-of-way ease-
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