HOUSE BILL NO. 573

INTRODUCED BY S. BOOKOUT-REINICKE

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING EMINENT DOMAIN LAWS; ESTABLISHING CONDITIONS FOR THE EXERCISE OF EMINENT DOMAIN POWERS FOR PIPELINES TRANSPORTING HAZARDOUS AND DELETERIOUS SUBSTANCES; MODIFYING REQUIREMENTS TO BE MET PRIOR TO CONDEMNATION; AMENDING SECTIONS 69-13-104, 70-30-111, AND 70-30-309, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

WHEREAS, condemnation of property may result in adverse impacts on private property; and

WHEREAS, there are risks associated with pipelines that transport hazardous substances; and

WHEREAS, when private property is condemned for a pipeline right-of-way the condemnee should be compensated for damages incurred as a result of leaks from the pipeline; and

WHEREAS, when private property is condemned for a pipeline right-of-way, the condemnee should not be liable for damages incurred by others as a result of leaks from the pipeline; and

WHEREAS, the Montana Environmental Policy Act and the Montana Major Facility Siting Act establish procedures for evaluating the potential impacts of certain actions and this information is relevant to a determination that the public interest requires a taking of property; and

WHEREAS, Montana law authorizes the adoption of a master plan and zoning regulations to promote the public health and safety and provides an opportunity for citizens to participate in decisions affecting land use through a public hearing on the adoption of master plans and zoning regulations; and

WHEREAS, the condemnor should make every effort to obtain the consent of the owners of property to be condemned.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 69-13-104, MCA, is amended to read:

"69-13-104. Use of power of eminent domain. A common carrier described in 69-13-101 that has filed with the commission its acceptance of the provisions of this chapter has the right and power of eminent domain. In exercising the power of eminent domain, the common carrier may enter upon and condemn the land, rights-of-way, easements, and property of any person or corporation necessary for the construction, maintenance, or authorization of the common carrier pipeline, subject to the requirements of Title 70, chapter 30. If the pipeline is designed to transport hazardous or deleterious substances as defined in 75-10-701, the common carrier shall comply with [section 2]. "

NEW SECTION. Section 2. Eminent domain requirements for pipelines transporting hazardous or deleterious substances. The following requirements apply to the exercise of eminent domain powers for a pipeline that is designed to transport hazardous or deleterious substances as defined in 75-10-701:

(1) The common carrier shall indemnify and hold harmless the condemnee for any damages incurred by any injured party that arise from or are caused by the operation of the pipeline, including a discharge or leak from the pipeline.

(2) The common carrier shall post a surety bond with the department of environmental quality, conditioned to compensate the condemnee or any injured party for damages that arise from or are caused by the operation of the pipeline, including a discharge or leak from the pipeline. Compliance with this subsection does not relieve the common carrier of the responsibility to post a performance bond if a bond is required by the department of environmental quality pursuant to 75-20-302.

Section 3. Section 70-30-111, MCA, is amended to read:

"70-30-111. Conditions before condemnation -- determination of public interest. Before property may be taken:

(1) an environmental impact statement must be completed if the law requires an environmental impact statement for the action for which the property is to be condemned;

(2) a certificate of environmental compatibility must be issued by the department if required by Title 75, chapter 20, for the type of action for which the property is to be condemned;

(3) the plaintiff shall submit signatures of 60% of the owners of the property proposed to be condemned;

(4) the plaintiff shall show by a preponderance of the evidence that the public interest requires the taking based on the information required under subsections (1) and (2) and the following findings:

(a) that the use to which it is to be applied is a use authorized by law;

(b) that the taking is necessary to the use;

(c) if already appropriated to some public use, that the public use to which it is to be applied is a more necessary public use; and

(d) that an effort to obtain the interest sought to be condemned was made by submission of a written offer and that the offer was rejected; and

(5) the plaintiff shall show that the land use is authorized by:

(a) the master plan, if adopted pursuant to Title 76, chapter 1, for each jurisdictional area within which property is proposed to be condemned; and

(b) zoning regulations, if adopted pursuant to Title 76, chapter 2, for each jurisdictional area within which property is proposed to be condemned."

Section 4. Section 70-30-309, MCA, is amended to read:

"70-30-309. Final order of condemnation -- contents -- vesting upon filing. (1) When payments have been made and the bond given, if required by [section 2] or if the plaintiff elects to give one, as required by 70-30-307 and 70-30-308, the court shall make a final order of condemnation, which must describe the property condemned and the purposes of the condemnation.

(2) A copy of the order must be filed in the office of the county clerk and recorder, and the property described in the order must vest in the plaintiff for the purposes specified in the order."

NEW SECTION. Section 5. Codification instruction. [Section 2] is intended to be codified as an integral part of Title 69, chapter 13, part 1, and the provisions of Title 69, chapter 13, part 1, apply to [section 2].

NEW SECTION. Section 6. Coordination instruction. If [LC 1612] is passed and approved, then [section 2(2) of this act] is void.

NEW SECTION. Section 7. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

NEW SECTION. Section 8. Effective date. [This act] is effective on passage and approval.

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