Public Comment. Volume III - Montana Legislature

company by statute, in order to obtain access to
private land for regulatory authorized use, with a
court determining compensation under state law.
What does an Easement Agreement Grant the
Pipeline ?
The easement agreement permits pipeline
companies to construct, operate, maintain and
patrol pipelines within certain boundaries on the
property through which the easement has been
granted. The area of land within these boundaries
is referred to as the right-of-way.
Can the Easement be Used for Anything Other
Than the Pipeline?
This is subject to negotiation. Easements can be
negotiated for what ever purposes the parties
mutually desire. A pipeline company can install in
the right-of-way the necessary equipment for
maintenance and operation of the pipeline, which
includes, but is not limited to, fiber optic cables,
cathodic protection equipment, test leads, and
communications devices for sending and receiving
signals, data and information. This is agreed to in
the Right-of-way Easement Agreement with the
landowner. If right-of-way easement is obtained
through eminent domain, this equipment may only
be used for the proposed pipeline and related
facilities.
What Type of Interest Can a Pipeline Company
Obtain in a Property by Condemnation?
The eminent domain statutes allow for either rightof-way
easements or fee simple title to be taken.
However, only the minimum necessary interest
may be taken. A right-of-way easement is a
sufficient interest for the purpose of buried oil
pipelines. The Montana Petroleum Association is
not aware of a single case in Montana where a
crude oil or petroleum products pipeline company
has ever condemned for title to the property.
Do Crude Oil or Petroleum Products Pipelines
Exercise the Right of Eminent Domain in Montana?
By statute, common carrier crude oil and petroleum
products pipelines have the right of eminent
domain in Montana. While the right of eminent
domain is necessary to ensure the viability of our
energy delivery system, pipeline companies very
rarely exercise their statutory right of
condemnation. In order to balance public good
with least private injury and just compensation,
condemnation proceedings are complex and
lengthy. Condemnation is used by pipelines only as
a last resort, when right-of-way negotiations fail,
and there is no other reasonable alternative. About
1000 miles of crude oil and fuel products pipeline
were built in Montana in the past decade. There
were only two condemnation proceedings
associated with all of that construction. Pipeline
companies filed a few other condemnation lawsuits
during the past decade; however, these were
settled prior to trial.
A condemnation proceeding can extend the
amount of time required for obtaining approvals by
an additional 2 years. If the condemnors are not
allowed to obtain possession of the property until
after the valuation process and valuation appeals,
the time frame would be even longer. This
extended time added to the negotiation process is
not in the best interest of the public or the pipeline
company, and every attempt is made to negotiate
with landowners to avoid the use of eminent
domain.
The Safety Record of Crude Oil and Petroleum
Products Pipelines
U.S. Government statistics show that oil pipelines
are the safest, most efficient method of
transporting crude oil and petroleum products.
Through the decade of the 1 990s, the average
annual fatality rate associated with crude oil and
petroleum products pipeline accidents in the United
States was 2.2 lives per year. For comparison,
42,524 people died in motor vehicle accidents in
1997 in the United States.
Government statistics also show that from 1990
through 1999, less than two teaspoons of oil were
spilled for each mile that one million gallons of oil
traveled by pipeline. Pipelines carry sixty-five
percent (65%) of all oil transported in the United
C~de Oil & Petroleum
Product Pipelines in Montana
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