Larson v. Sinclair Transportation Co.

2012 CO 36, 284 P.3d 42, 175 Oil & Gas Rep. 901, 2012 WL 1825229, 2012 Colo. LEXIS 349
CourtSupreme Court of Colorado
DecidedMay 21, 2012
DocketNo. 09SC966
StatusPublished
Cited by12 cases

This text of 2012 CO 36 (Larson v. Sinclair Transportation Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larson v. Sinclair Transportation Co., 2012 CO 36, 284 P.3d 42, 175 Oil & Gas Rep. 901, 2012 WL 1825229, 2012 Colo. LEXIS 349 (Colo. 2012).

Opinions

Justice RICE

delivered the Opinion of the Court.

1 In this eminent domain action, we address whether section 88-5-105, C.R.S. (2011), grants condemnation authority to a company for the construction of a petroleum pipeline. We conclude that the General Assembly did not grant, expressly or by clear implication, the power of eminent domain to companies for the construction of pipelines conveying petroleum. Section 88-5-105 therefore does not grant condemnation authority to Sinclair Transportation Company (Sinclair) for the purpose of constructing its pipeline. Accordingly, we reverse the court of appeals' opinion upholding the trial court's order granting Sinclair immediate possession of the subject property.

I. Facts and Procedural History

T2 Since 1963, Sinclair and its predecessors have owned right-of-way easements across two properties, one property now owned by Ivar E. Larson and Donna M. Larson and another property now owned by Lauren Sandberg and Kay F. Sandberg (collectively, landowners). The easements allow Sinclair to run a single six-inch gasoline pipeline underground across the properties. In 2006, Sinclair approached the landowners to negotiate for new easements, adjacent to the existing easements, so that it could run a second underground gasoline pipeline parallel to the first pipeline. The parties did not reach an agreement and Sinclair petitioned the trial court for immediate possession of the desired property rights.

3 The trial court determined that Sinclair had authority to condemn the property pursuant to section 88-5-105. The trial court granted the petition for immediate possession and held a valuation hearing to determine the market value of the condemned property. At the hearing, the trial court refused to admit almost all of the landowners' evidence on valuation and granted a directed verdict in favor of Sinclair.

¶ 4 The landowners appealed and the court of appeals affirmed. The court of appeals concluded that Sinclair had authority to condemn the property pursuant to section 38-5-105 because it is a "pipeline company." Sinclair Transp. Co. v. Sandberg, 228 P.3d 198, 204 (Colo.App.2009). It also concluded that the trial court did not abuse its discretion by refusing to admit the landowners' valuation evidence and directing a verdict in favor of Sinclair. Id. at 208-11.

¶ 5 We granted certiorari to review the court of appeals' determination of condemnation authority and also its determination of other claimed errors during the proceedings.1

II. Analysis

¶ 6 We conclude that section 38-5-105 does not grant condemnation authority, either expressly or by clear implication, to companies for the construction of a petroleum pipeline. Rather, the General Assembly intended to authorize condemnation for the construction of electric power infrastructure.

A. Standard of Review

¶ 7 The eminent domain issue in this case presents a question of statutory interpretation. We review de novo the court of appeals' interpretation of a statute. Boulder Cnty. Bd. of Comm'rs v. HealthSouth Corp., 246 P.3d 948, 951 (Colo.2011).

¶ 8 Our primary task when interpreting a statute is to give effect to the [44]*44intent of the General Assembly. Smith v. Exec. Custom Homes, Inc., 230 P.3d 1186, 1190 (Colo.2010). We look first to the plain language of the statute, giving the language its commonly accepted and understood meaning. Id. Where the language is ambiguous, we look to the legislative history of the statute and the context of the overall statutory scheme to ascertain the legislature's intent. Sperry v. Field, 205 P.3d 365, 367 (Colo.2009). We may also consider the title of the statute and any accompanying statement of legislative purpose. People v. Cross, 127 P.3d 71, 73 (Colo.2006); Concerned Parents of Pueblo, Inc. v. Gilmore, 47 P.3d 311, 313 (Colo.2002).

¶ 9 In addition, we construe narrowly statutes which confer condemnation power upon private entities. Bly v. Story, 241 P.3d 529, 533 (Colo.2010) (citing Coquina Oil Corp. v. Harry Kourlis Ranch, 643 P.2d 519, 522 (Colo.1982)). We have stated, therefore, that condemnation authority, "being against the common right to own and keep property, must be given expressly or by clear implication; it can never be implied from doubtful language." Coguina, 643 P.2d at 522 (quoting Town of Eaton v. Bouslog, 133 Colo. 130, 131-32, 292 P.2d 343, 344 (1956)); see also Potashnik v. Pub. Serv. Co. of Colo., 126 Colo. 98, 101, 247 P.2d 137, 138 (1952).

B. Condemnation Authority

¶ 10 The court of appeals determined that, according to its plain language, section 38-5-105 grants eminent domain authority to any "pipeline company." Sinclair, 228 P.3d at 204. It then reasoned, based upon cases from other jurisdictions, that a "pipeline company" is a company that conveys "power, air, gas, water, ... oil, ... steam, natural gas, processed gas, manufactured gas, crude oil, refined petroleum products, coal, and related products" through a pipeline. Id. Because Sinclair conveys petroleum products through its pipelines, the court of appeals concluded that Sinclair is a pipeline company under section 38-5-105. Id. We disagree because section 88-5-105 does not expressly define a pipeline company as a company conveying petroleum, and nothing in Article 5 of Title 38 clearly implies such a definition.

¶ 11 Section 38-5-105 provides: "Such telegraph, telephone, electric light power, gas, or pipeline company or such city or town is vested with the power of eminent domain, and authorized to proceed to obtain rights-of-way for poles, wires, pipes, regulator stations, substations, and systems for such purposes by means thereof."

¶ 12 Reading Article 5 as a whole, the words "such ... company" in section 105 mean companies described in sections 38-5-101 and ~102, C.R.S. (2011). Those sections describe these companies as: "Any domestic or foreign electric light power, gas, or pipeline company authorized to do business under the laws of this state." §§ 38-5-101, -102.

¶ 13 Section 105 also provides that these companies are authorized to obtain rights-of-way for certain physical installations "for such purposes." Just as "such ... companies" is more completely described in see-tions 101 and 102, we also look to those two sections for the meaning of the phrase "such purposes" in section 105. Section 101 provides:

Any domestic or foreign electric light power, gas, or pipeline company authorized to do business under the laws of this state or any city or town owning electric power producing or distribution facilities shall have the right to construct, maintain, and operate lines of electric light, wire or power or pipeline ....

(Emphasis added). Section 102 provides:

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Bluebook (online)
2012 CO 36, 284 P.3d 42, 175 Oil & Gas Rep. 901, 2012 WL 1825229, 2012 Colo. LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larson-v-sinclair-transportation-co-colo-2012.