17-02-2025
Bill supports North Dakota landowners caught in costly legal battles
Sen. Jeff Magrum, R-Hazelton, talks to landowners Jan. 30, 2025, at the Capitol. (Jeff Beach/North Dakota Monitor)
Sen. Jeff Magrum has not had much success backing bills that seek to protect landowner rights and curb the use of eminent domain and the development of carbon pipelines.
But Magrum, a Republican from Hazelton, got strong backing last week from Senate Majority Leader David Hogue on a bill that would allow landowners to recoup legal fees in eminent domain cases and easement negotiations.
'I love pipelines,' Hogue, R-Minot, said testifying Wednesday in favor of House Bill 2321, 'but that doesn't mean the landowner shouldn't be treated fairly.'
Lawmakers vote down 6 bills to limit carbon capture in North Dakota
Landowners are asked to provide right-of-way on their land by developers of large infrastructure projects such as pipelines, power lines and roads. Landowners are compensated for that right-of-way, known as an easement, but how much they are paid is subject to negotiation between the developer and landowner.
If an agreement can't be reached, a developer may be able to obtain the easement through a legal proceeding known as eminent domain.
With eminent domain, a landowner can be forced to provide right-of-way. The court would determine how much a landowner is paid if it allows eminent domain.
But during negotiations and court proceedings, the landowners may incur thousands of dollars in expenses through fees to attorneys or obtaining an appraisal or other expert testimony.
Bismarck attorney Derrick Braaten, who represents landowners, said a growing number of eminent domain cases are ending up in federal court because one of the parties is from out of state. He said federal judges are still basing their rulings on state law, including awarding of fees and expenses, and that federal judges are looking for clarity in state law on how to handle those awards.
He said judges also have discretion not to award the full amount of fees and expenses if it seems unreasonable.
The bill could also address situations where a project developer begins negotiations with a landowner but abandons the project or changes the project footprint. In those cases, a judge could award compensation to the landowner.
'This addresses the situation where there is no win or loss,' said Hogue, who is an attorney.
The Senate Judiciary Committee did not act on the bill but indicated it might pick up the bill again Monday.
More 2025 legislative session coverage
The bill is one of several backed by Magrum to give support to landowner rights. In testimony, he has singled out the Summit Carbon Solutions pipeline as being forced on landowners who can't afford the court costs to fight back.
Earlier in the week, the Senate defeated Senate Bill 2322, sponsored by Magrum, which would have eliminated eminent domain for carbon dioxide pipelines.
Hogue voted against the bill but noted during discussion on the Senate floor that North Dakota eminent domain law is flawed, treating half-inch fiber optic cable and 24-inch pipelines the same way and without fair compensation for landowners who seek to negotiate the best possible contract with a project developer.
Another Magrum bill, Senate Bill 2320, sought to remove property tax exemptions for interstate carbon pipelines. That bill also failed last week.
Magrum was a co-sponsor of six House bills related to carbon capture. All six failed on the House floor Friday.
His bills addressing carbon pipelines in the 2023 session also failed.
There is opposition to Magrum's bill addressing fees and expenses.
'Eminent domain is a necessary tool to ensure reliable and affordable electric service, particularly in the development of transmission infrastructure,' lobbyist Dennis Pathroff wrote on behalf of the Power Companies of North Dakota. 'The added costs mandated by SB 2321 could increase project expenses, delay infrastructure investments, and result in higher costs for North Dakota electric consumers.'
After hearing Hogue's comments on eminent domain, Magrum said he looked forward to getting more support on the bill to improve the stand of landowners in easement negotiations.
'Thanks, Mr. Leader,' Magrum said.
SUPPORT: YOU MAKE OUR WORK POSSIBLE
SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
