Pantagraph.com Weather forecast, local radar and more
NewsTuesday, July 10, 2007 6:11 PM CDT
Caution urged on pipeline plan
Advertisement

BLOOMINGTON -- With companies eyeing rural land for wind farms and pipelines, landowners must quickly learn to protect their interests when negotiating contracts.

“Be extremely cautious and careful when you’re first approached … There’s no rush (to sign),” said Matt Jontry, a lawyer for the Illinois Farm Bureau, speaking to McLean County residents Monday about a proposed crude-oil pipeline that would cut through Central Illinois farmland.

Enbridge Inc. wants to install a 175-mile underground pipeline from its Flanagan terminal near Pontiac to Patoka in Southern Illinois that would ultimately help pump more than 400,000 barrels of Canadian crude oil to the Gulf Coast daily.

To do so, the Canadian company needs to negotiate contracts with about 130 landowners in McLean County.

120 people attend

On Monday, the McLean County Farm Bureau sponsored an informational meeting at the Interstate Center in Bloomington to discuss landowners’ rights in relation to those contracts. More than 120 people attended, as Enbridge has yet to begin negotiations.

Jontry said landowners should look for more than a one-time payment when discussing options with Enbridge. Landowners should request compensation for crop loss, for example, he said.

If receiving crop-loss payments for several years, they should consider inflation. Landowners also must be aware of future property tax liability associated with the pipeline and request that Enbridge pay any of those costs, Jontry said.

“You want to get everything in writing of what you agree to with these people,” he said.

Steve Chard, of the Illinois Department of Agriculture, said landowners also must ensure 5 feet of soil covers the pipeline, among other recommendations for maintaining a fertile farm.

Eminent domain issues

Affected landowners also face the prospect of eminent domain. Enbridge has not sought eminent domain yet, but a spokesman has said it is a last option.

To do so, the company must file a request with the Illinois Commerce Commission.

Video
Most commented stories
Browse online archives
Recent issues:
Reader comments on this story - 2 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Why Pump it? wrote on Jul 10, 2007 11:04 AM:

" To the gulf coast refineries...so a hurricane can wipe them out and double gas prices again? How about building a new refinery closer to the source? "

Hilldweller wrote on Jul 10, 2007 9:23 AM:

" The same pipeline is coming from the North into the Flanagan station. Enbridge filed for and received eminent domain status in a seperate proceding after getting approval from the state for the project in January 2007. "

Add your own comments

Please read the rules before posting comments.

You must be logged in to leave comments.
If you don't have a member ID, please register.

*Member ID:
*Password:
Remember login?
(requires cookies)
  Forgot Your Password?