April 19, 2024

Iowa landowners sue IUB over oil pipeline

By Mike Mendenhall

A stockpile of 30-inch pipe continues to grow in a farm field north of Highway 6 East on East 76th Street North, three miles east of Newton. The pipe is intended for the pending Dakota Access Pipeline. Three Iowa landowners held a press conference Wednesday in Des Moines after filing a lawsuit in Cherokee County against the Iowa Utilities Board, claiming the project does not fall under the IUB’s jurisdiction to allow the use of eminent domain. (File Photo)

DES MOINES — Three Iowa landowners have filed a lawsuit against the Iowa Utilities Board, claiming the three-member panel does not have the authority to grant the use of eminent domain in the construction of the proposed Dakota Access crude oil pipeline.

The lawsuit was filed in Cherokee County District County on Monday by Marian Johnson of Cherokee County, Brent Jesse of Buena Vista County and Richard Lamb of Boone County.

According to the civil court petition, the plaintiffs argue the IUB does not have jurisdiction over an interstate pipeline, not qualifying the project as a public utility as deemed necessary by the Iowa Code for the IUB to allow the use of eminent domain.

The 1,134-mile, 30-inch diameter oil pipeline would carry 570,000 barrels of crude oil per day. If approved by the IUB, the Iowa segment will be part of a connecting line between the North Dakota Bakken crude oil fields with a hub in Patoka, Ill., leading to gulf coast refineries. Nearly 34 miles of the proposed pipeline route goes through Jasper County, affecting landowners and farmland from Mingo to Reasnor.

In the suit, the landowners allege that representatives for Dakota Access, LLC — a subsidiary of Texas-based Energy Transfer Partners — led them to believe that IUB would allow Dakota Access to use eminent domain to condemn their land if they do not “immediately” sign an easement. Dakota Access is allowed to seek voluntary land easements from landowners for the proposed project, but the IUB will make the final decision following a final public hearing on whether the company is allowed to use eminent domain to construct the pipeline on the remaining land.

Following a press conference in Des Moines Wednesday, Bill Hanigan, the attorney representing the landowners in the suit, said his clients are asking the IUB to respond to the petition by Aug. 20.

“The Iowa law allowing limited condemnation of farmland requires that a crude oil pipeline either be subject to Iowa safety regulatory jurisdiction or be a utility. Interstate crude oil pipelines are subject to federal jurisdiction, and they are not utilities because no Iowans utilize their services. There are no oil refineries in Iowa,” Hanigan said.

Hanigan said one of his plaintiffs felt threatened by Dakota Access representatives’ claims that the use of eminent domain for the limited condemnation of their farmland was a certainty if they did not agree to an easement.

“Petitioners lack an adequate remedy at the administrative level because of the immediate and irreparable injury associated with the permanent grant of an easement under the threat of eminent domain,” the lawsuit reads. “Petitioners require clarity from the court as to whether they ultimately have a choice — are they negotiating with the interstate pipeline company at arm’s length, or are the threats of eminent domain substantiated and therefore the Petitioners must ultimately acquiesce.”

IUB spokesperson Don Tormey said Wednesday the IUB does not comment on pending litigation.

The IUB released a tentative timeline in June for final approval the project. The board set tentative dates for a final public hearing from Nov. 12 through Dec. 2. If all parties adhere to the timeline, the project’s fate could be decided by late December 2015 or early January 2016.

Contact Mike Mendenhall at mmendenhall@newtondailynews.com