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Caution urged on pipeline plan

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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.

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