Another Deadly Pipeline Explosion

Clark Hill PLC
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A pipeline explosion in Shelby, Alabama killing one worker and sending five to the hospital.

While there may be thousands of miles of pipelines throughout the country, accidents involving them are unfortunately too common. For example, I recently included a blog post describes a pipeline that exploded in New Mexico that killed ten campers. 

While I do not know at this time what the statistical dangers are for being close to pipelines, these type of events being publicized will cause an impact on market value. Quite simply, if a property owner has a choice between two identical houses on two identical lots and two otherwise identical locations and one house includes a pipeline that may explode, the owner will pay less for that property. This does not take into account diminution of value caused by the property rights enjoyed by the pipeline company and the limitations of use on the property imposed upon the owner. 

Southeastern Michigan has undergone an unprecedented volume of pipeline construction or plans for pipelines in recent times. I personally handled or am handling pipeline projects involving Nexus Pipeline, ET Rover Pipeline, DTE, and Wolverine Pipe Line Company. In all of the cases that have reached a conclusion, I have been able to both reduce the contractual rights acquired by the pipeline companies while increasing the just compensation paid to the owners. 

This blog post provides a general discussion of issues implicated in these cases.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Clark Hill PLC

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