Texas Supreme Court Issues Ruling in Denbury Green Pipeline

Although the Texas Supreme Court decision in Denbury Green Pipeline-Texas, LLC v. Texas Rice Land Partners, Ltd. has put an end to the litigation, there are a number of unanswered questions and potential issues that remain in the opinion’s aftermath. This case will continue to have serious impacts on landowners and pipeline companies dealing with the use of eminent domain in Texas.  When the Denbury Green Pipeline project planned to build a C02 pipeline from Missisippi to Brazoria and Galveston Counties in Texas, the company declared themselves a “common carrier” on a Railroad Commission form in March 2008, which granted them the power of eminent domain.  Under Texas law at that time, Denbury was not required to provide any other additional information to prove its common carrier status to the Railroad Commission. Denbury’s planned pipeline route crossed two tracts of land owner by Texas Rice Partners.   When Denbury contacted the landowner to conduct a survey over the Texas Rice Partners property, they were denied entry.  Denbury then sued for an injunction to get access to the property for surveying.