(MintPress)—TransCanada Corporation announced on Monday its plan to go ahead with construction on the southern portion of the Keystone XL pipeline despite opposition from landowners and denial of a Presidential Permit granting construction rights for the full pipeline from Canada to Texas.
The Gulf Coast Project, which will stretch from Oklahoma to Texas, does not need Presidential approval since it does not cross international borders. The project does, however, need approval for the land acquisition from frustrated property owners affected by the construction.
The Obama administration welcomed the Canadian company’s announcement to proceed with the portion of the pipeline that would address the bottleneck of oil in Cushing, Oklahoma. According to a statement by Press Secretary Jay Carney, “Moving oil from the Midwest to the world-class, state-of-the-art refineries on the Gulf Coast will modernize our infrastructure, create jobs, and encourage American energy production.”
Carney expressed the President’s enthusiasm for the $2.3 billion project, saying, “We look forward to working with TransCanada to ensure that it is build in a safe, responsible and timely manner, and we commit to take every step possible to expedite the necessary Federal permits.”
TransCanada estimates that around 4,000 jobs will be created as a result of the Gulf Coast Project. The company also plans to support American companies through existing contracts with 50 suppliers in equipment manufacturing locations across the U.S.
According to a press release by TransCanada, “The Keystone XL project offers Americans a choice of receiving Canadian and U.S. oil through this pipeline system or continuing to import crude oil from unstable places such as the Middle East and Venezuela that do not share American values.”
Landowners Fight Back Against Eminent Domain Claims
However, not all Americans believe TransCanada has American values at heart. Since last fall, TransCanada has been involved in a series of eminent domain lawsuits to confiscate private property for use in the Keystone XL pipeline project.
As of last October, TransCanada already had at least 56 cases underway in Texas and South Dakota in addition to dozens or letters sent to families in Nebraska. Currently, there are estimated to be 89 ongoing eminent domain cases in Texas alone.
TransCanada continues to say its “commitment is to treat landowners with honesty, fairness and respect.” So far, the company claims to have negotiated over 99 per cent of easements in Texas and almost 100 per cent in Oklahoma through voluntary negotiations.
According to TransCanada, through voluntary easements, “Residents maintain ownership of the land and landowners receive a payment equal to or greater than the land’s market value.” Similar easements have been negotiated for water, sewer and utility lines.
Many residents claim to have only agreed to voluntary easements because of bullying tactics used by TransCanada. Susan Scott, a farm owner in Sulpher Springs, TX, claims she signed a voluntary easement agreement after a representative from TransCanada threatened to sue Scott under eminent domain, saying that Scott would surely lose the lawsuit and be stuck with enormous fees.
Julia Trigg Crawford, a Northeast Texas landowner, refused to sign the a land agreement and is fighting back against TransCanada’s eminent domain claims. Protesters gathered in Paris, TX on Friday, February 17th to support Crawford’s request for a restraining order to prevent construction on her property until her lawsuit is settled.
Crawford was granted a temporary restraining order, but a judge has since dissolved the order. However, Crawford is still actively pursuing a lawsuit challenging TransCanada’s legal entitlement as a common carrier.
TransCanada believes it has legal rights to seize private property for private use under eminent domain as a common carrier because of the public character of the oil pipeline. Even though TransCanada is a private foreign company, it claims the completed pipeline will benefit the general public in the United States.
Texas Supreme Court Gives Hope to Landowners
Historically, property owners have rarely won suits against pipelines and railroads companies claiming eminent domain as common carriers. However, in 2011 the Texas Supreme Court raised serious questions about the ability of private energy companies to claim common carrier status.
According to the opinion, written by Justice Don R. Willett, “Private property is constitutionally protected, and a private enterprise cannot acquire condemnation power merely by checking boxes on a one-page form.”
The ruling gives landowners the right to challenge the eminent-domain power of energy companies, therefore providing an avenue for Crawford to demand further justification for the public nature of the Keystone XL project. According to Amaro Law Firm, the Court’s decision has given Texas attorneys and landowners a small amount of bargaining power against TransCanada. Crawford’s case is expected to be heard in court in mid-April.
The Gulf Coast Project is just one section of the larger 1,700 mile Keystone XL pipeline project. TransCanada also gave notice to the State Department on Monday that it will reapply for Presidential approval for the segment stretching from Canada to Steele City, Nebraska as soon as a new route for the pipeline is selected.