Texas Supreme Court Revises Test to Establish Common Carrier Status in Condemnation Cases

On March 2, 2012, the Texas Supreme Court revised its opinion in the controversial case, Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline-Texas, LLC. In its original decision, the Supreme Court held that merely filing the paperwork and offering to make the pipeline available for public use does not make the pipeline a "common carrier" with the power of eminent domain. Instead, the Supreme Court held that Denbury Green Pipeline-Texas, LLC ("Denbury") must also show that a reasonable probability exists, at or before the time common carrier status is challenged, that the pipeline will serve the public by transporting gas for customers who will use the gas themselves or sell it to another party other than the carrier.

To continue reading, please click the link below.


JW e-Alert: