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Bluegrass Pipeline cannot use eminent domain
Says purpose doesn't match state's requirements
Mar 25, 2014
Franklin Circuit Court Judge Phillip Shepherd wrote in his opinion that private companies
can only enlist the help of eminent domain with an explicit mandate from the state
legislature.
Landowners have sued the company, complaining its representatives have been
threatening the use of eminent domain to force them to sell their properties and
accept lower prices.
“Bluegrass remains free to build its pipeline by acquiring easements from willing
property owners,” Judge Shepherd wrote. “However, Bluegrass cannot invoke the
sovereign power of eminent domain to threaten or intimidate, or even suggest to
landowners who have no desire to sell, that Bluegrass has the right to take their
property without their consent.”
Bluegrass Pipeline Company had argued it had the right to invoke eminent domain,
which gives the government the right to force property owners to sell their property.
They pointed to a Kentucky law that allows eminent domain for oil and natural gas
for “public use.”
But the landowners argued there was a difference between natural gas used as a
utility for heating homes and the natural gas liquids being transported in the pipeline,
which are used to make plastics and other products.
They also argued the pipeline was not for public use but for the company’s private gain,
because the product was being transported through Kentucky for distribution and export
elsewhere.
Edited by Lauren Ragland
FOR LOCAL EMERGENCY PLANNING COMMISSIONS
