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NJ group sues FERC over process that lets pipelines take land

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NJ group sues FERC over process that lets pipelines take land

Concerned over anticipated federal approvals of natural gas pipeline projects, a New Jersey conservation group asked a U.S. district court to require changes in how the Federal Energy Regulatory Commission grants pipelines the power of eminent domain as part of Natural Gas Act certificates.

The New Jersey Conservation Foundation filed the request with the U.S. District Court for the District of New Jersey and announced it Nov. 27. The foundation claimed FERC pipeline certificates, which Congress gave the power to take private land, were unconstitutional because a federally approved project might not have yet acquired all necessary state and local approvals that would permit developers to begin construction and operation activities.

"When FERC issues certificates conditioned on subsequent state and federal approvals that have the power to change the route of the pipeline, the [certificates] have been used to condemn lands that may not be necessary for the construction of the pipeline," the group said in the filing.

The group also said landowners could have their property taken away in instances where the pipeline is ultimately never built.

FERC and pipelines have said the power of eminent domain is only used as a last resort if a pipeline company and a landowner cannot reach agreement on compensation for a piece of private property.

The conservation foundation asked the court to declare that the commission's approval process for pipelines violates the Fifth Amendment to the U.S. Constitution by granting the power to take land from individuals and private parties without a proved public need. The Fifth Amendment states that any property taken from private owners for public use must be compensated. The organization also asked for a finding that FERC cannot accept private shipping contracts as evidence of market demand.

"The Fifth Amendment says that private property can only be taken for public use, and FERC's pipeline review process doesn't pass that test," the group's campaign director Tom Gilbert said in a statement. "For example, hundreds of homeowners, organizations and local governments could have their land seized through eminent domain for the unneeded, proposed PennEast pipeline, and would be victims of unconstitutional action by the federal government."

PennEast Pipeline Co. LLC's project was not directly named in the filing, so company spokesperson Patricia Kornick said they would not respond. The 1-Bcf/d PennEast pipeline would run from Pennsylvania into New Jersey to deliver gas from the Marcellus Shale.

Environmental groups and landowners have complained about the FERC approval process giving too much power to pipelines before, and they have been backed by some U.S. congressmen.