Bridle Bit Ranch Co. v. Basin Electric Power Cooperative

2005 WY 108, 118 P.3d 996, 2005 Wyo. LEXIS 135, 2005 WL 2142995
CourtWyoming Supreme Court
DecidedSeptember 7, 2005
Docket04-134, 04-136
StatusPublished
Cited by9 cases

This text of 2005 WY 108 (Bridle Bit Ranch Co. v. Basin Electric Power Cooperative) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bridle Bit Ranch Co. v. Basin Electric Power Cooperative, 2005 WY 108, 118 P.3d 996, 2005 Wyo. LEXIS 135, 2005 WL 2142995 (Wyo. 2005).

Opinion

HILL, Chief Justice.

[¶ 1] Employing its powers of eminent domain, the Respondent, Basin Electric Power Cooperative (Basin), sought to condemn a right-of-way through a portion of Campbell County in order to build a 230-kilovolt (kV) power transmission line. Basin asserted that the transmission line was necessary so as to provide additional electrical power to areas of Campbell County where coal bed methane (CBM) is being developed and to otherwise enhance the availability and reliability of electrical service to that area. Basin is a regional wholesale electric generation and transmission cooperative that supplies wholesale electricity to its distribution cooperatives. Powder River Energy Corporation (PRECorp) is a Wyoming non-profit corporation and is one of Basin’s distribution cooperative members. PRECorp provides electricity at retail to its customers in Northeastern Wyoming, including Campbell County.

[¶ 2] Basin was able to reach settlements with approximately 82% of the private landowners affected by the transmission line, as well as with the United States Forest Service. 1 At the time of the hearing on this stage of the condemnation action (the “taking”), Basin had not yet reached agreements with two groups of landowners, nor with The State of Wyoming, Office of State Land and Investments (State Lands), or the Bureau of Land Management (BLM). 1 Case No. 04-134 is a challenge to the district court’s order granting Basin immediate possession of the lands owned by a group of landowners to whom we will refer collectively as “the Bridle Bit Group.” Case No. 04-136 is a similar challenge to that same order by another group of landowners to whom we will refer as “the Roush Group.”

[¶ 3] By order entered on July 13, 2004, this Court granted Petitions for Writ of Review under W.R.A.P. 13, in order to address the concerns of both groups of landowners. It was necessary for the landowners to utilize W.R.A.P. 13 because of a long-standing precedent articulated by this Court that the “taking” portion of a condemnation action is not *999 an appealable order. Arp v. State Highway Commission, 567 P.2d 736, 739 (Wyo.1977).

[¶ 4] Both groups of landowners contend that Basin is a public utility as defined by Wyo. Stat. Ann. § 37-1-101 (LexisNexis 2005), and, thus, Basin was required to obtain a certificate of public convenience and necessity from the Public Service Commission (PSC) before beginning the process of locating the transmission line. They also contend that Basin: Failed to show that public interest and necessity required the project; failed to show that the project is planned and located in a manner that will be most compatible with the greatest public good and the least private injury; and failed to negotiate in good faith. It is also contended that the district court erred in granting a taking that is, in essence, perpetual.

[¶ 5] We will affirm the district court’s order in all respects.

ISSUES

[¶ 6] The Bridle Bit Group raises these issues:

A. Did the district court commit clear error in finding Basin located the transmission line in the manner most compatible with greatest public good and least private injury?
B. Did the district court err in finding that a perpetual easement for transmission lines is permitted under Wyoming law?
C. Did the district court err in finding that Basin was not a public utility as defined by Wyoming Statute § 37-1-101?

The Roush Group states these issues:

I. Whether the district court erred in finding [that Basin] met all the requirements of Wyoming’s eminent domain statutes.
a. Did [Basin] comply with the statutory requirements for a condemnation action?
b. Is [Basin] a “public utility,” and therefore, required to obtain a “certificate of public convenience and necessity” from the Public Service Commission pri- or to eondemnation[?]
II. Whether [Basin] should be granted a limited easement or an easement in perpetuity.

We glean this more complete statement of the issues from Basin’s brief:

I. Basin has complied with the statutory requirements for its condemnation action.
a) Basin has shown that the public interest and necessity require the transmission line project.
b) Basin has proved that the project is planned or located in the manner that will be the most compatible with the greatest public good and the least private injury[.]
c) Basin has made reasonable and diligent efforts to acquire property by good faith negotiation.
II. Basin is entitled to a permanent easement for its transmission line and access rights-of-way.
III. Basin [is not a public utility] and was not required to obtain a certificate of public convenience and necessity from [PSC] [before proceeding with the] condemnation action.

FACTS AND PROCEEDINGS

[¶ 7] During the winter of 2000, Basin began looking at selecting a route for an additional power transmission line in Campbell County. By letter dated December 21, 2000, Basin submitted the following inquiry to PSC:

Basin Electric Power Cooperative (Basin Electric) is currently reviewing its resources for supplying wholesale power to its member Powder River Energy Corporation (PRECORP). PRECORP has experienced a sudden and rather substantial increase in its membership load because of the development of coal bed methane in the Powder River Basin.
While Basin Electric is considering several options for power supply, the first phase of an overall program needs to move forward expeditiously so that Basin Electric can meet its power supply obligations. Our studies show that Basin Electric needs approximately 40-50 MW [megawatt] of capacity in place in the PRECORP service territory on or before May of 2002.
*1000 To meet this need, we anticipate installing up to 15 MW of combustion turbine capacity adjacent to each of the PRECORP substations located in Arvada, Barber Creek and Hartzog for a total of 45 MW. A map of the proposed locations is attached. There will be three or four combustion turbines located at each substation, depending on the size of the units ultimately selected. The estimated cost of these facilities is $36 million.
Basin Electric seeks a ruling from the Commission on whether it must obtain a Certificate of Public Convenience and Necessity under Section 37-2-204[ 2 ] of the Wyoming Statutes Annotated for the installation of these turbines.

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Bluebook (online)
2005 WY 108, 118 P.3d 996, 2005 Wyo. LEXIS 135, 2005 WL 2142995, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bridle-bit-ranch-co-v-basin-electric-power-cooperative-wyo-2005.