Property Rights versus Public Good - March 5, 2007
I read with interest your article on property rights
versus the public good. A subject in general that is of
growing profile not only in the pipeline industry but
concerning infrastructure in general. The issues are
common to any project that has an impact on a third party.
Hydrocarbon pipelines, due to their large footprint and
hazardous product, have an enhanced exposure to these
issues.
The problem may be dealt with by using a sustainable
development methodology. Not surprisingly, the utilization
of scientific and economic principles along with a
transparent and equitable distribution of costs and
benefits will translate into smooth and low cost
development.
Many of the problems with the routing of new pipeline
projects is the result of poor planning. Regional
authorities responsible for zoning need to take into
account future demands for economic infrastructure. If
infrastructure corridors, transportation corridors and
industrial zones are not properly planned for they will
not proceed or the cost of those developments will be
prohibitive. The end result will be that the growth and
standard of living in the area will be retarded.
Imminent domain does not allow the public good to
trample individual rights. For example a pipeline project
cannot subject third parties to unacceptable risk. The
hierarchy of approach is generally: impact avoidance,
mitigation, and then finally compensation. Each
progressive alternative is utilized based on comparative
cost. When the cost of mitigation becomes less than the
cost of avoidance that alternative becomes preferred and
so forth. The principle of imminent domain allows a fair
price to be paid where compensation is the preferred
option. At the same time this does not mean that the
compensated individual is subject to an intolerable
increase in risk.
Some impacts such as visual impairment or diminished
enjoyment are quite subjective and in these cases it may
be difficult to come to terms that all parties are happy
with. The majority of the more tangible impacts are
manageable and a fair and equitable settlement that falls
within the framework and goals of sustainability is most
often possible.
Imminent domain allows for the economic surplus of a
project to be distributed in a fair and transparent
manner. It is the same type of protection given to the
public that prevents one party from grabbing and holding
economic benefits that should be distributed to a larger
group. As with any tool it may be abused and misused. If
so the short term gain of the offending party will lead to
the pain of another party and in the longer term it hurts
society through the propagation of mistrust and economic
distortion.
Ian Morrison
Principal
Stantec Consulting
What the article does not talk about is the path of the
pipeline and the extent of the right-of-way they are
seeking. It does not seem the people are upset about the
pipeline per se, but the land issues surrounding it. So I
would first want to ask just how much land is needed for
the pipeline and can it be installed using existing
right-of-ways, Possibly even replacing an existing
pipeline with a larger diameter to achieve the desired
delivery figures they want.
The other thing that I can see from the State's
perspective and the residents is to ask first if the
pipeline company is doing anything to promote energy
conservation. The gas people are in the business to sell
gas and the pipeline people are in the business to install
and transport gas, but both should be required to educate
people and even have programs to encourage consumers to be
more efficient with their use of gas. I have just received
a tankless water heater for installation in my home and I
am looking to use solar in a radiant heating system to
lower my overall use of gas. These are just two items that
I am doing and there are certainly many more. And there
are big savings to be achieved in commercial and
industrial applications.
Couple together such actions can mitigate the necessity
to add these new pipelines saving a lot of people a lot on
mental energy and expense in fighting these proposals. And
such cooperative workings will strengthen the
relationships between parties such that we are working
together rather than against one another.
Bradley Schneider
President/CEO
Recovered Energy Resources, Inc.
In your article, you quote "Eminent domain exists
because services such as electricity, natural gas, sewer
and water are considered necessities," says Mike Enoch,
general manager of the Chester County Natural Gas
Authority in South Carolina."
I would counter to say that eminent domain exists
because public works are considered important. Private,
for profit, companies would do better improving their
image and working with the residents they claim to serve,
rather than trying to push their way through using eminent
domain.
Chris Stehlik
Although your editorial makes a stab at telling both
sides of the story, your version of the property rights
disputes is decidedly one sided. I have only one comment.
The idea that infrastructure will not be built if property
rights are upheld is ludicrous. The pipelines will simply
have to be built where the property owners can agree on
the terms. If the gas company makes a few million dollars
less profit, so be it. And how do you feel about this
scenario: My little town has no grocery store, and I live
on a very nice piece of corner property... just right for
the location of the new Super Wal-Mart. Should my property
be taken from me so Wal-Mart doesn't have to build a store
a few miles away costing them some potential profits?
Everyone in town could conceivably benefit from having the
store close by... and if Wal-Mart has to spend more money
for the land maybe they won't build the store this year.
But property RIGHTS are just that, I have a right to own
that property and refuse to give it up to another private
entity.
Robert Wyner
Uvalde, Texas
I read this article with interest in both directions.
After 25 years in the utility sector, I have had to use
the right of eminent domain in only a few rare occasions.
Most problems can be negotiated, but it requires much work
and patience. I have seen other companies weigh the cost
of the time required in negotiating, against legal fees
and skip right to the IP hearing procedure and let the
courts determine the value to be paid after construction
is complete.
As a landowner, I do not want any company in pursuit of
profits restricting or taking my land or exercising any
rights on my land for their own gain. I feel that when
pipeline companies and electric utilities became
unregulated profit mongers, they forfeited any rights of
eminent domain. They no longer operate for the benefit of
the public sector, only to the benefit of stockholders and
their own management. Most supply shortages and deliver
constraints are more contrived by greed than the actual
inability of pipes and wires to deliver the product. The
actual need for these additional lines is greatly
exaggerated by lopsided market rules and protocols.
John Sheppard
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