Wolverine Pipeline Company seeks to add a second line along an existing easement.
This article describes Wolverine Pipeline’s intention to add a second line next to an existing line. Wolverine may have the right to do this based upon the original easement that it acquired. Frequently, pipelines include language allowing construction of additional pipelines in easements. To add the second line, Wolverine will need to acquire additional rights to clear vegetation.
This situation touches on several past posts.
First, it demonstrates why it is important to understand all of the rights being acquired and value the acquisition assuming that all rights would be used to the fullest extent allowed by law. At the time of the initial pipeline construction, it might have seemed speculative that a second line would actually be added. However, this project shows that these rights are used in reality, which is why Michigan law requires just compensation to be evaluated based on the assumption that property rights will be used to the fullest extent allowed by law. This article that I published in an international trade magazine discusses this general legal concept in this exact second-pipeline example.
Property owners must recognize their ability to challenge the acquisition of such excessive rights to prevent this type of issue arising in the future. This post discusses the ability of owners to challenge the acquisition of excessive rights even where use of eminent domain is appropriate to construct the project.
Finally, the article includes the laughable and self-serving assertion that pipelines do not reduce property values. Having a swath of property that cannot be landscaped certainly reduces property values.
If you are being targeted by an acquisition by Wolverine or any other pipeline company, please feel free to contact me.