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By Paul R. Yagelski, Esq.

Rothman Gordon

Pittsburgh, Pennsylvania

In Tennessee Gas Pipeline Co., LLC v. Permanent Easement For 7.053 Acres, 931 F.3d 237 (3rd Cir. 2019), the Third Circuit Court of Appeals set the standard for the calculation of damages in a federal pipeline condemnation action in Pennsylvania under the Natural Gas Act.

In Tennessee Gas Pipeline Company, Tennessee Gas Pipeline, LLC ("Tennessee Gas") commenced a condemnation act under the Natural Gas Act of 1938 ("NGA"), 15 U.S.C. §§ 717-717z, to acquire easements to construct natural gas pipelines over a 975 acre tract owned by King Arthur Estates, LP ("King Arthur") and located in Pike County, Pennsylvania. As required by the NGA, Tennessee Gas obtained a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission authorizing it, inter alia, to construct natural gas pipelines in New Jersey and Pennsylvania to augment its natural gas delivery capacity to the region. As part of this project, Tennessee Gas sought to obtain easements. Upon unsuccessfully attempting to purchase the requisite easements from King Arthur, Tennessee Gas filed a condemnation action under Federal Rule of Civil Procedure 71.1 in the United States District Court for the Middle District of Pennsylvania.

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