Real Estate & Property Law

Montana Faces Difficulty in Reforming Eminent Domain

By Alan Ackerman

Like many others legislatures dealing with the expansive demands of utility infrastructure, Montana is having difficulty balancing the supposed need for new power lines and railroads against the alleged abuses of property owners. Of course, utilities are not always wrong. A law that gives landowners unlimited power would hinder needed upgrades to infrastructure. On the other hand, a statute that gives too much power to the utilities would ensure that property owners continue to face abuse and unjust compensation. Hopefully, the Montana Legislature will work out a compromise that protects both sides. 

The Greenfield Reporter 

"The power of eminent domain is abused too often," said Chuck Hahn of Townsend. "We are being forced to give up what we believe is our property, property we have worked long and hard for."

The supporters included the Montana Stockgrowers Association, a ranching group, and Northern Plains Resource Council, a group of landowners and environmentalists.

But opponents led by NorthWestern Energy argue the proposal would let just one or two landowners permanently derail a project or extort enormous sums.

John Fitzpatrick, NorthWestern Energy's lobbyist, argued the bill if enacted would derail big projects like the planned development of the Otter Creek coal fields that will need railroad service. He said it sets no timeframe for landowner opposition, arguing it will create a legal quagmire that would go on and on.

"Pass this bill and you are going to find it next to impossible to do anything," he said. "This is a perfect example of tyranny of the minority. All it takes is one, particularly a large landowner, to stop a project."

Full post as published by National Eminent Domain Blog on January 24, 2011 (boomark / email).