§ 22 — Compensation for damages to the surface

(a) An affected landowner is entitled to reasonable compensation from an applicant who has been granted a certificate of authority under this Act for damages resulting from access to the landowner's property for required activities taken to construct the pipeline, including, but not limited to, the following: (1) compensation for damage to growing crops, trees, shrubs, fences, roads, structures, improvements, personal property, and livestock thereon and compensation for the loss of the value of a commercial crop impacted by pipeline installation; the value of the crop shall be calculated based on local market price by: (A) determining the average per acre yield for the same crop on comparable adjacent acreage; (B) determining the price received for the sale of the same crop on comparable adjacent acreage; (C) determining the acreage of the area impacted by pipeline activities and applying the determined price; and (D) making an initial determination of the value of the crop, which shall be determined by the affected landowner and submitted to the applicant who has been granted a certificate of authority under this Act; (2) compensation to return the surface estate, including soil conservation practices, such as terraces, grassed waterways, and other conservation practices, to the condition of the surface prior to accessing the property; (3) compensation for damage to the productive capability of the soil resulting from compaction or rutting if the parties are incapable of reaching resolution for such issues under the mitigation agreement detailed in paragraph (6) of subsection (b) of Section 20. An applicant shall not access a property where excessively wet soil conditions would not allow normal farming operations due to increased risk of soil erosion, rutting, or compaction. The Department of Agriculture may temporarily halt construction or any other activities on a proposed pipeline upon a finding of an applicant's noncompliance with this paragraph. If there is a dispute between the applicant who has been granted a certificate of authority under this Act and the landowner regarding the value of the damage to the productive capability of the soil, the applicant who has been granted a certificate of authority under this Act and the landowner shall consult with a representative of the soil and water conservation district in the respective county where the parcel of property is located for recommendations to restore the productive capability of the soil; and (4) compensation for damage to surface and subsurface drainage, including, but not limited to: (A) compensation in that the applicant who has been granted a certificate of authority under this Act shall perform immediate and temporary repairs for damage that occurs to subsurface drainage tiles that have water actively flowing through them at the time of damage; and (B) compensation such that the applicant who has been granted a certificate of authority under this Act shall compensate the affected landowner to permanently restore drainage to the condition of the drainage prior to accessing the property. (b) The compensation for damages required by subsection (a) shall be paid in any manner mutually agreed upon by the applicant who has been granted a certificate of authority under this Act and the affected landowners. Unless otherwise agreed, the applicant who has been granted a certificate of authority under this Act shall tender to the landowner payment by check or draft no later than 60 days after completing the required activities under the application if the occurrence or value of damages is not disputed. The landowner's remedy for unpaid or disputed compensation shall be an action for damages in any court of competent jurisdiction for the parcel of property or the greater part thereof on which the activities were conducted, and the landowner shall be entitled to recover reasonable damages and attorney's fees if the landowner prevails. (c) If any landowner prevails in litigation seeking compensation for damages under this Section, the applicant who has been granted a certificate of authority under this Act shall be responsible for such reasonable attorney's fees and costs as the court may allow and a judgment may be entered therefor in favor of the plaintiff if the attorney's fees and costs are not paid as provided by the court. (d) Nothing in this Section shall have any impact on an applicant's fulfillment of the requirement to enter into an agreement with the Department of Agriculture that governs the mitigation of agricultural impacts associated with the construction of the proposed pipeline as detailed in paragraph (6) of subsection (b) of Section 20. An applicant shall comply with the requirements of the agreement that governs the mitigation of agricultural impacts as detailed in paragraph (6) of subsection (b) of Section 20.

Legislative History

(Source: P.A. 104-390, eff. 1-1-26 .)