April 21, 2019

SB 13-021: Reaffirming Grant of Power of Eminent Domain to Pipeline Companies Conveying Petroleum Products

On Wednesday, January 9, 2013, Sen. Mary Hodge introduced SB 13-021 – Concerning Technical Revisions to Article 5 of Title 38, Colorado Revised Statutes, that Reaffirm that the Provisions of that Article Relating to Rights-of-Way for Transmission Companies Apply to Pipeline Companies Operating Pipelines that Convey Petroleum and Hydrocarbon Products. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Article 5 of title 38, C.R.S., governs rights-of-way for transmission companies and grants the right of eminent domain to any domestic or foreign electric light power, gas, or pipeline company authorized to do business in Colorado for the purpose of obtaining rights-of-way for wires, pipes, regulator stations, substations, and systems needed to conduct its business. Until May 2012, it was commonly understood that article 5 applied to and granted the right of eminent domain to all pipeline companies authorized to do business in Colorado, including companies operating pipelines that convey oil, gasoline, or other petroleum products.

In May 2012, the Colorado Supreme Court held that article 5 grants the right of eminent domain only for acquisition of rights-of-way for pipelines involved in delivering electric power or natural gas and not for pipelines that convey oil, gasoline, or other petroleum products. The bill reaffirms that article 5 grants the power of eminent domain to pipeline companies operating pipelines that convey petroleum products by defining the term “pipeline company” to include such companies and by making additional clarifying technical revisions. Assigned to the Local Government Committee.

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