First District Affirms NGL Pipeline's Eminent Domain Authority and Valuation Award After Landowner Fails to Present Competing Evidence
First District affirmed Grand Prix Pipeline's condemnation of a 0.71-acre easement across Madison County property for its 720-mile Permian-to-Mont Belvieu NGL common carrier, holding the pipeline satisfied Texas Natural Resources Code §111.002's eminent domain requirements. The court upheld a $5,588 special commissioners' valuation award after landowner T.B. Farms failed to present competing appraisal evidence or effectively rebut Grand Prix's common carrier status under the statutory framework.
Background
Grand Prix Pipeline, LLC operates a 720-mile natural gas liquids common carrier pipeline system transporting product from the Permian Basin to Mont Belvieu. To complete the pipeline route, Grand Prix sought to condemn a 0.71-acre easement, 50 feet in width, across property owned by T.B. Farms, Ltd. in Madison County, Texas. After special commissioners awarded T.B. Farms $5,588 in compensation for the taking, T.B. Farms challenged both the valuation and Grand Prix's underlying authority to exercise eminent domain.
The Condemnation Authority Dispute
The case turned on whether Grand Prix possessed condemnation authority under Texas Natural Resources Code §111.002, which grants eminent domain power to common carrier pipelines. T.B. Farms contested Grand Prix's status as a common carrier entitled to invoke the statute's condemnation provisions. The landowner also challenged the adequacy of the $5,588 compensation award determined by the special commissioners, arguing the valuation failed to adequately compensate for the property interest taken.
First District's Analysis
The Court of Appeals for the First District of Texas affirmed on both grounds. The court held that Grand Prix had established its status as a common carrier pipeline under §111.002, satisfying the statutory prerequisites for eminent domain authority. On valuation, the court found T.B. Farms failed to meet its burden of presenting competing evidence to challenge the special commissioners' award. Without expert appraisal testimony or other valuation evidence contradicting the $5,588 figure, T.B. Farms could not overcome the commissioners' determination. The court's analysis emphasized that a condemnee bears the burden of producing evidence to support a higher valuation than that awarded by special commissioners.
Implications for Pipeline Condemnation Practice
The decision reinforces the substantial burden landowners face in challenging both the condemnation authority and valuation determinations in Texas pipeline takings. Practitioners representing property owners in eminent domain proceedings must present affirmative evidence—typically expert appraisal testimony—to rebut special commissioners' valuations; mere disagreement with the award proves insufficient. For pipeline companies, the ruling confirms that common carrier status under §111.002 remains a viable path to condemnation authority for NGL transportation infrastructure connecting major production basins to processing and export hubs.