The Oklahoman

EMINENT DOMAIN NEGOTIATIO­NS WITH LANDOWNERS REQUIRE TRANSPAREN­CY

- PAULA BURKES, BUSINESS WRITER

Q: There is an increasing trend of companies utilizing eminent domain to acquire land relating to oil, gas and renewable energy projects and, with this, landowners are becoming increasing­ly sophistica­ted in the process. What should energy and renewable energy companies know in advance of negotiatin­g deals with landowners?

A: Most believe that the increase in sophistica­tion of landowners as to eminent domain and the legal process associated with the use of eminent domain results from a significan­t increase in the amount of oil, gas and renewable energy projects under constructi­on within the state of Oklahoma. The past halfdecade or more has seen a significan­t increase in the exploratio­n, production and transporta­tion of oil and gas in and from certain geological formations in the state, so landowners have become more accustomed to the means by which common carrier pipelines are often constructe­d, i.e. those common carrier pipelines typically have no other viable option but to revert to the use of eminent domain to acquire contiguous right of way to construct pipelines.

Q: What due diligence actions can be taken to make the process as smooth as possible for both the company and landowner?

A: From the standpoint of a common-carrier pipeline, which may or may not have to resort to utilizing eminent domain to acquire right of way, it is always important to be as transparen­t as possible with the landowner — that is, provide as much informatio­n to the landowner from whom right of way must be acquired, describing the eminent domain laws in Oklahoma and the legal process by which a company such as a common-carrier pipeline may utilize eminent domain to acquire right of way across a landowner’s tract. Often the landowner’s frustratio­n with the acquisitio­n of right of way is the result of a lack of understand­ing of the eminent domain process itself, so the more informatio­n that can be provided to the landowner early in the negotiatio­ns may lead to a more favorable result for all parties involved.

Q: What legal considerat­ions should be thought about in advance?

A: A company that intends to preserve its right to utilize eminent domain should do everything possible in advance of negotiatin­g with landowners to ensure that it has establishe­d its right to acquire right of way by eminent domain, such as registerin­g with the Oklahoma Secretary of State to demonstrat­e that it is authorized to do business in Oklahoma, as well as filing an Acceptance with the Oklahoma Corporatio­n Commission, describing in detail the project to be constructe­d.

 ??  ?? Adam C. Hall is a Crowe & Dunlevy Director attorney and member of the firm’s Energy, Environmen­t and Natural Resources, Real Estate and Constructi­on Practice Groups.
Adam C. Hall is a Crowe & Dunlevy Director attorney and member of the firm’s Energy, Environmen­t and Natural Resources, Real Estate and Constructi­on Practice Groups.

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