Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline-Texas, LLC

381 S.W.3d 465 (Tex. 2012) · Supreme Court of Texas · August 17, 2012

Summary

Justice Wainwright, joined by Justice Johnson, concurs in the denial of rehearing while addressing the scope of the Court’s holding concerning common-carrier status for carbon dioxide pipelines. The concurrence discusses whether transporting gas only for a corporate parent or affiliate satisfies the public-use requirement for eminent domain under Texas law. It urges a narrower and more defined understanding of “affiliate,” based on ownership or operational control, to protect property rights and preserve corporate separateness.

Holdings

  1. A carbon dioxide pipeline seeking common-carrier status and the power of eminent domain must demonstrate that it transports carbon dioxide to or for the public for hire; merely checking a box on a government form is insufficient.
  2. The Court's opinion held that a pipeline does not serve a public use if it transports gas only for a corporate parent or affiliate; Justice Wainwright agreed with the principle but would limit the term "affiliate" to relationships involving some defined ownership interest, operational control, or both.

Questions Presented

  1. Whether a carbon dioxide pipeline may qualify as a common carrier with eminent-domain authority merely by declaring itself a common carrier on a government form.
  2. Whether transporting carbon dioxide only for a corporate parent or affiliate fails the public-use requirement for common-carrier status.
  3. Whether the term "affiliate" should be construed broadly without requiring a defined ownership interest, operational control, or other limiting relationship.

Disposition

other

Cases Cited (3)

  • Severance v. Patterson, 370 S.W.3d 705 (Tex. 2012)(followed)
  • Eggemeyer v. Eggemeyer, 554 S.W.2d 137, 140 (Tex. 1977)(followed)
  • Upjohn Co. v. United States, 449 U.S. 383, 386 (1981)(followed)

Cited In (0)

No citing cases on record yet.

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