What is Eminent Domain?
How is it used in the Energy Industry?
Eminent domain is the legal power of the government to take private property for public use. It is exercised with just compensation to the owner.
In the energy industry, private companies may use eminent domain to acquire right-of-way access to land for the construction of pipelines, power lines and other utility projects. Companies must receive permission from the state or local government before they can exercise this power. Companies must also pay the landowner a fair market value for the property and provide just compensation for any damages that may be caused by the project. Additionally, companies must prove that the project is for a public use, such as providing electricity to the community.