Supreme Court Decision Could Upend Pipeline Easements Nationwide
A dispute over a 12-mile pipeline in North Dakota has reached the US Supreme Court, potentially resetting the price of every gas easement in America.
The case began in 2018 when WBI Energy Transmission notified local ranchers that their land would be used for a natural gas pipeline. The company holds a FERC certificate that confers condemnation authority similar to a government agency.
When the parties couldn't agree on price, the company filed a federal condemnation action under the Natural Gas Act. After years of legal work and a $383,375 bill, the ranchers reached a confidential settlement in 2021.
However, the Eighth Circuit erased every dollar, ruling that the Natural Gas Act didn't explicitly allow compensation for legal fees. This decision put it at odds with all other federal appeals courts, which had followed a 40-year precedent of using state law to determine just compensation.