SENATE BILL NO. 461

INTRODUCED BY B. GLASER

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE POWER OF EMINENT DOMAIN FOR PIPELINES AND OTHER DELIVERY SYSTEMS; AND AMENDING SECTIONS 69-13-104 AND 70-30-106, MCA."

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. Subject to 70-30-106, a person, firm, corporation, limited partnership, joint-stock association, or association of any kind mentioned in this chapter that has filed with the commission its acceptance of the provisions of this chapter has the power of eminent domain and, in the exercise of the power, may enter upon and condemn the land, rights-of-way, easements, and property of any person or corporation as necessary for the construction, maintenance, or authorization of a common carrier pipeline. The manner and method of condemnation and the assessment and payment of the damages is as provided by law in the case of railroads."

Section 2. Section 70-30-106, MCA, is amended to read:

"70-30-106. Eminent domain not to be used for coal mining or for pipelines and other delivery systems in certain cases -- policy. (1) For the following reasons the state's power of eminent domain may not be exercised to mine and extract coal owned by the plaintiff located beneath the surface of property when the title to the surface is vested in others:

(a) Because of the large reserves of and the renewed interest in coal in eastern Montana, coal development is potentially more destructive to land and watercourses and underground aquifers and potentially more extensive geographically than the foreseeable development of other ores, metals, or minerals and affects large areas of land and large numbers of people.

(b) In many areas of Montana set forth in subsection (1)(a) , the title to the surface is vested in an owner other than the mineral owner, and the surface owner is putting that surface to a productive use, and it is the public policy of the state to encourage and foster the productive use by the surface owner, and to permit the mineral owner to condemn the surface owner is to deprive the surface owner of the right to use the surface owner's property in a productive manner as the surface owner determines and is also contrary to public policy as set forth in subsection (1)(d).

(c) The magnitude of the potential coal development in eastern Montana will subject landowners to undue harassment by excessive use of eminent domain.

(d) It is the public policy of the state to encourage and foster diversity of land ownership, and the surface mining of coal and control of large areas of land by the surface coal mining industry would not foster public policy and further the public interest.

(2) (a) The power of eminent domain may not be exercised for a pipeline or other system for conducting water, heat, gas, petroleum, electricity, or communications services for the use of the inhabitants of a county, city, or town that would parallel or roughly parallel the route of an existing pipeline or other system already conducting the same item to those inhabitants.

(b) The owner of an existing pipeline or other system conducting any item referred to in subsection (2)(a) on property taken by eminent domain, or a person or entity that has taken an interest in property by eminent domain for the purpose of installing a pipeline or other system to conduct any item referred to in subsection (2)(a), may not allow any other person or entity to install another pipeline or other system conducting any item referred to in subsection (2)(a) on the taken property unless the owner of each parcel of the condemned property consents and is compensated in an amount demanded by the owner. There is no power of eminent domain for the additional pipeline or other system."

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