Company may seek order again if negotiations fail
SPRINGFIELD - Enbridge-Illinois has proven the need for a 170-mile crude oil pipeline through central Illinois but the company has not earned the right just yet to take land from property owners along the route, according to a proposed order filed Friday with the Illinois Commerce Commission.
Enbridge has been challenged for two years by landowners who oppose plans to build the pipeline that could carry Canadian crude oil from a terminal near Flanagan to a crude oil hub at Patoka.
Enbridge spokesman Joe Martucci said Monday the 66-page order was still under review but the company's initial reaction was gratitude that the proposal recommends an authorization to construct the pipeline based on necessity and public interest.
Eminent domain withheld
However, the recommended order submitted by Administrative Law Judge Larry Jones does not find that eminent domain is required for the pipeline project to be completed. The opinion suggests that Enbridge continue its negotiations with landowners to try to reach agreements on outstanding easements.
Enbridge plans to move forward with those negotiations, said Martucci.
"While the recommended order does not authorize eminent domain at this particular time, Enbridge's position has consistently been that eminent domain should only be used as a last resort," said Martucci.
If the two sides fail to reach an agreement, Enbridge could return to the ICC to request eminent domain, he said.
A LeRoy attorney who claims to represent 200 landowners said the recommendation represents an important victory for opponents.
"We don't oppose the pipeline process. We just don't believe Enbridge should have been granted the right to force landowners to give up their property. It's a huge victory for landowners," said Pluira.
Jones' proposed order differs from a February opinion from ICC staff that eminent domain power be given to Enbridge.
The ICC could vote on the proposed order in the next six weeks. Enbridge has the opportunity to submit comments on the proposal and the law judge may revise his recommendation.
Route approved
In his opinion to the five-member commission, Jones recommended that the proposed route for the pipeline be approved. Concerns raised by the McLean County Board and Village of Downs should be considered in any final ruling, said Jones.
Enbridge should fulfill its commitment to work with McLean County officials on the location of an east side highway as it relates to the pipeline, said Jones.
The pipeline company also must work with Downs officials to address concerns that the pipeline could interfere with a planned sewer project. An agreement to alter the depth of the pipe could solve that problem, the law judge suggested.
Much of the pipeline will follow 120 miles of existing easements from Heyworth to Salem Enbridge contends it secured with the 2006 purchase of the Central Illinois Pipeline Co.
Construction on the $500 million project could begin in 2010.
Posted in Business on Wednesday, May 27, 2009 12:00 am Updated: 11:41 am.
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