Pennsylvania Court Grants Condemnation Of A Temporary Construction Easement To Operator

The Court of Common Pleas of Lycoming County, Pennsylvania recently granted the condemnation of a temporary construction easement to UGI Penn Natural Gas, Inc. (UGI).  UGI is a public utility, regulated by the Pennsylvania Public Utility Commission.  The term of the easement is for 1 year in order to park and store vehicles and equipment and materials related to the construction, maintenance, replacing and changing of one or more pipelines for the transportation, transmission and distribution of gas.   

 

The issue in the case was whether a public utility’s condemnation for the construction and maintenance of a pipeline for the transportation, transmission and distribution of natural gas to a private business which operates as a power generating plant within its service area violates Pennsylvania’s Property Rights Protection Act.  The court concluded that it did not.  Because UGI is a public utility, regulated by the Public Utility Commission, it falls within “the limited, defined class of condemners” permitted to use the eminent domain power to provide public services in tandem with benefits to a  private enterprise.  26 Pa.C.S. Sec. 204(b)(2)(i).  The Court also distinguished the present case from prior cases in that UGI, as the public utility, will own the easement rather than the private enterprise.