Knight v. Enbridge Pipelines, L.L.C.

In 1952 an Illinois owner granted a pipeline operator an easement for two pipelines across the parcel. The first was built immediately; the second, if built, had to be within 10 feet of the first. The contract says that any pipeline must be “buried to such depth as will not interfere with such cultivation.” In 2012 the operator notified the owner that it planned to build a second pipeline. The owner filed a quiet-title suit, alleging that either the right to build a second line had expired or that another line would violate the farmability condition. The operator replied that 49 U.S.C. 60104(c), preempts enforcement of the farmability condition. The district court dismissed. A second pipeline has been built 50 feet from the first, using eminent domain to obtain the necessary rights, but the owner anticipates construction of a third pipeline. Vacating the judgment, the Seventh Circuit held that no construction is currently planned and the district court acted prematurely. Until details of a third pipeline’ are known, it is not possible to determine what effect it would have on agricultural use. Only if a third pipeline prevents using the land for agriculture would it be necessary (or prudent) to determine whether section 60104(c) establishes a federal right to destroy more of the land’s value than paid for in 1952. The court stated that it had no reason to think that Illinois would call the 1952 contract an option or apply the Rule Against Perpetuities. View "Knight v. Enbridge Pipelines, L.L.C." on Justia Law