§1108. Eminent domain; expropriation
A.
(1)Any storage operator is hereby authorized, after obtaining any permit and any
certificate of public convenience and necessity from the secretary required by this Chapter,
to exercise the power of eminent domain and expropriate needed property to acquire surface
and subsurface rights and property interests necessary or useful for the purpose of
constructing, operating, or modifying a storage facility and the necessary infrastructure
including the laying, maintaining, and operating of pipelines for the transportation of carbon
dioxide to a storage facility, together with utility, telegraph, and telephone lines necessary
and incidental to the operation of these storage facilities and pipelines, over private property
thus expropriated; and have the fu
Free access — add to your briefcase to read the full text and ask questions with AI
§1108. Eminent domain; expropriation
A.(1) Any storage operator is hereby authorized, after obtaining any permit and any
certificate of public convenience and necessity from the secretary required by this Chapter,
to exercise the power of eminent domain and expropriate needed property to acquire surface
and subsurface rights and property interests necessary or useful for the purpose of
constructing, operating, or modifying a storage facility and the necessary infrastructure
including the laying, maintaining, and operating of pipelines for the transportation of carbon
dioxide to a storage facility, together with utility, telegraph, and telephone lines necessary
and incidental to the operation of these storage facilities and pipelines, over private property
thus expropriated; and have the further right to construct and develop storage facilities and
the necessary infrastructure, including the laying, maintaining, and operating of pipelines
along, across, over, and under any navigable stream or public highway, street, bridge, or
other public place; and also have the authority, under the right of expropriation herein
conferred, to cross railroads, street railways, and other pipelines, by expropriating property
necessary for the crossing under the general expropriation laws of this state. The right to run
along, across, over, or under any public road, bridge, or highway, as before provided for, may
be exercised only upon condition that the traffic thereon is not interfered with, and that such
road or highway is promptly restored to its former condition of usefulness, at the expense of
the storage facility and the pipeline owner if different from the storage operator, the
restoration to be subject also to the supervision and approval of the proper local authorities. (2) The exercise of eminent domain or expropriation powers under this Section shall
not allow for the expropriation of reservoir storage rights for geologic storage. This
prohibition against the use of expropriation of reservoir storage rights for geologic storage
shall not apply to the exercise of expropriation powers in connection with any parish as to
which Paragraph (B)(2) of this Section is applicable.
(3) In the exercise of the privilege conferred by this Section, owners or operators of
such storage facilities and pipelines shall compensate the parish, municipality, or road
district, respectively, for any damage done to a public road, in the construction of storage
facilities, and the laying of pipelines, utility, telegraph, or telephone lines, along, under, over,
or across the road. Nothing in this Chapter shall be construed to grant any transporter the
right to use any public street or alley of any parish, incorporated city, town, or village, except
by express permission from the parish, city, or other governing authority.
B.(1) Except as provided in Paragraph (2) of this Subsection, the exercise of the right
of eminent domain granted in this Chapter shall not prevent persons having the right to do
so from drilling through the storage facility in such manner as shall comply with the rules of
the secretary issued for the purpose of protecting the storage facility against pollution or
invasion and against the escape or migration of carbon dioxide. Furthermore, the right of
eminent domain set out in this Section shall not prejudice the rights of the owners of the
lands or minerals as to all other uses not acquired for the storage facility and not reasonably
necessary for the use of the acquired property.
(2) The exercise of the right of eminent domain granted in this Section may prohibit
persons having the right to do so from drilling through the storage facility located in
Caldwell Parish only when the following requirements are satisfied:
(a) A period of five years has elapsed from the actual drilling or operation of any oil
or gas well within the boundaries of the storage facility to depths below the base of the
underground reservoir component of the storage facility as determined by the secretary.
(b) All reservoirs below the underground reservoir component of the storage facility
that were drilled to and produced in any oil or gas well located within the boundaries of the
storage facility are no longer capable of producing minerals in paying quantities as
determined by the secretary.
(3) If a party who has the right to explore for and produce minerals from depths
below the base of the underground reservoir component of the storage facility is prohibited
from drilling through the storage facility under Paragraph (2) of this Subsection by the
exercise of the right of eminent domain granted in this Section, that prohibition shall
terminate upon a finding by the secretary, after notice and hearing conducted in accordance
with R.S. 30:1105(C), that the storage facility operator abandoned all reasonable efforts to
use, or cause others to use, the storage facility prior to any use of the underground reservoir
component of the storage facility for the storage of carbon dioxide.
C.(1) In addition to the requirements of Paragraph (2) of this Subsection and any
other power of eminent domain authorized by law, eminent domain authority authorized
under this Chapter shall be exercised pursuant to the procedures found in R.S. 19:2.
Notwithstanding any law to the contrary, expropriation hearings conducted pursuant to this
Chapter shall be heard in the parish in which the property subject to the expropriation is
situated.
(2) Prior to initiating any eminent domain proceedings, the owner or operator of a
carbon sequestration storage facility or pipeline shall comply with the following
requirements:
(a) Provide written notice to the landowner of the intent to acquire property or
property rights. The notice shall be sent to all property owners whose addresses are known,
unless those owners have jointly designated a representative to receive such communications.
The notice shall include:
(i) A clear statement of the owner or operator’s interest in the property.
(ii) An explanation of the owner's or operator's obligation to obtain one or more
appraisals of the property.
(iii) Any additional information reasonably necessary to inform the landowner of the
process and their rights.
(b) Provide the landowner or designated representative a reasonable opportunity to
be present during any inspection of the property conducted for appraisal purposes. The
landowner or representative shall be allowed to provide input regarding the condition and
features of the property to the appraiser.
(c) Engage in good faith negotiations with the landowner or their representative.
Such negotiations shall include no fewer than five in-person meetings or documented
attempts to meet in person.
(d) Submit a written offer to the landowner or their representative that includes:
(i) The amount offered as just compensation.
(ii) A legal description of the property and the specific interest to be acquired.
(iii) A list and description of any buildings or improvements located on the property
to be affected by the acquisition.
(e) Allow the landowner or their representative at least ten calendar days from receipt
of the written offer to respond with additional information or a counteroffer.
(f) The act of the landowner or his designated representative providing additional
information or a counteroffer, or the act of the owner or operator of a storage facility or
pipeline responding in writing to the additional information or counteroffer shall not extend
or affect the thirty-day time period for filing a petition for expropriation as provided in R.S.
19:2.2(C).
D. The secretary is neither a necessary nor indispensable party to an eminent domain
proceeding, and if named as a party or third party has an absolute right to be dismissed from
said action at the expense of the party who names the secretary. The secretary shall recover
all costs reasonably incurred to be dismissed from the action, including attorney fees.