What to do when facing Eminent Domain

The Monroe News recently published a very informative article on what to do when you are faced with eminent domain.

If you're approached by an oil company, gas company, or any other utility, eminent domain attorney Alan Ackerman says there are a few things you can do to ensure you're treated fairly.

Mr. Ackerman first suggested retaining a lawyer or at least consulting with one throughout the process. In most cases, he said, the entity attempting to obtain land or get easements will be responsible for homeowners' legal fees under Michigan law.

However, those who shy from attorneys also have options:

• Keep quiet, get the offer in writing and figure out what the basis for the offer is. Keeping quiet at this stage is important, said Mr. Ackerman, since whatever you say can be used later.

• Figure out exactly where the pipeline, wires, etc., are being installed. How will this affect the property next year? In 20 years? Does it destroy the farm tiles?

• Make sure you know what your local government mandates.

• Get everything in writing, make sure you can understand it and make sure it's specific. Do not sign anything until you have read it thoroughly and understand it.

• Keep the property well maintained.

• Keep in mind the people who come to negotiate the use of your property are professionals at this.

• Get an independent assessment.

• Get exact definitions.

• Beware of the tactics.

Marthon Pipeline Construction

UPDATE:  Right of way agencies are once again contacting owners.

Detroit News, September 19, 2007

City Council members grilled officials from Marathon Petroleum on Tuesday over the environmental impact of its $1.5 billion refinery expansion proposal and put pressure on the company to commit to hiring more Detroiters and minorities.

The project, which could bring up to 1,200 construction jobs and close to $9 million a year in taxes as well as increase gasoline supplies.

But some residents and environmental groups fear it would increase air pollution and say their southwest Detroit neighborhood is already overburdened with industry.

Company officials said they are committed to hiring Detroiters. They have scheduled job fairs and have set aside money for technical training and scholarships. The project will generate 135 permanent refinery jobs.

"The focus clearly is on Detroit residents," said Angelia Graves, a company spokeswoman.

-Marathon is still working to establish a plan, allowing for more temporary construction jobs and a number of permanent jobs. There is much to face in both the acquisition as well as construction process.

Detroit Heavy Oil Upgrade Project

Monroe News, September 22, 2007

The old real estate maxim is proving itself once again - this time when it comes to installing an oil pipeline.

 

Although some property owners don't want any kind of expanded oil pipeline running through their yards, others are okay with it - sort of.

For Gary Doubler, location has been the sticking point in his negotiations with Marathon Petroleum on behalf of his in-laws' farmland in Frenchtown along N. Custer and Raisinville Rds.

The project is being referred to as the Detroit Heavy Oil Upgrade Project (DHOUP) and would run from Samaria up to Detroit.

At this point, the project is proposed; no definitive plans have been secured. The new line would follow an existing line about 70 percent of the time. The other 30 percent of the time, it would run near the existing line but has had to be rerouted in places because of easement requirements.

The new line would be a wider (24-inch) pipe that would allow more viscous Canadian crude to flow.

Chris Fox, spokesperson for Marathon Oil on the DHOUP project, said the company has been in communication with all of the property owners along the route and has been working to secure the easements since last summer.

Deborah Brown, who owns land in Frenchtown, said the money Marathon was offering was laughable.

Ms. Fox said the company still is committed to working openly with people.

 

-The real problem is the pipeline right of way agents are negotiating either knowingly or negligently proceeding. This is becuase there is a very specific legal process in Michigan which requires that an appraisal or statement of value be provided to an owner prior to negotiation and purchase. The oil company agents are violating a condemnation procedure intended to protect owner’s whose properties may be take for public use in this State! I understand the process may be different in Oklahoma, but that does not mean the lack of knowledge of our fair procedure should bar owners of their rights.

Marathon Pipeline Slows

Detroit News, September 4, 2007

Marathon cleared a hurdle this morning toward a proposed $1 billion expansion of its Detroit refinery.

The expansion would add 135 jobs at the refinery and increase gasoline supplies in Michigan.  The project would also create 1200 construction jobs.

Several city council members have said they have serious questions about the project's impact on the neighborhood.

-Apparently Marathon has slowed down its acquisition attempts in Monroe and Wayne Counties. Marathon is awaiting a final determination of which community will obtain the pipeline.

There are concerns about the negative impact on the neighborhood of the refinery. However, the station vis a vis the community and the brownfield cleanup may offset these concerns.

One thing is for certain, with a billion dollar proposed expansion, even if only a half tax occurs, an economic boom will occur in the local area.

The eminent domain proceeding, consisting of the condemnation necessary for the pipeline, would shift into high gear.

Gas/ Petroleum Pipeline: Monroe, Buckeye and CMS

Monroe Evening News, January 18, 2007

When property owners in Monroe Michigan found out about a proposed Marathon Petroleum pipeline they understood that pipelines are a fact of life, but that doesn't mean they have to like it.

Marathon has been laying the groundwork for installing a new pipeline through Monroe County.   The pipeline would bring crude oil from Canada to the transfer station in Detroit.

The new line would be wider by 24 inches.

-Pipelines often have different attributes. Some are gas, while others are oil or gasoline.
Each pipeline has a different effect on the property. The environmental considerations are of paramount import. Affects on the property may occur in any of a number of ways.

The pipeline companies can be challenged. Despite a pipeline agent telling people that it will be very expensive for them, in many jurisdictions, the agency is required to pay the expert fees of the owners even as part of a settlement or litigation. The Marathon pipeline discussed in the Monroe Evening News will be particularly challenging for owners.