Texas Supreme Court Denies Right of Eminent Domain for a Pipeline if the Only End User is the Pipeline Owner or an Affiliate

In Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline-Texas LLC, the Texas Supreme Court reversed a court of appeals decision allowing Denbury Resources, Inc. (“Denbury”) to use the power of eminent domain to condemn private property for a carbon dioxide pipeline. At issue was whether a common carrier permit granted by the Texas Railroad Commission (the “Railroad Commission”) automatically granted a pipeline company the right to use eminent domain and whether a landowner could challenge the eminent domain power of a pipeline company in court.

READ: Texas Supreme Court Denies Right of Eminent Domain for a Pipeline if the Only End User is the Pipeline Owner or an Affiliate