MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Energy

By: Representative Staples

House Bill 967

AN ACT TO AMEND SECTION 11-27-47, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT OIL OR GAS PIPELINES BUILT, CONSTRUCTED OR EXTENDED USING EMINENT DOMAIN MUST BE OPERATED AS COMMON CARRIERS; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 11-27-47, Mississippi Code of 1972, is amended as follows:

     11-27-47.  (1)  All companies, associations of persons, municipalities, associations of municipalities, public utility districts authorized by and under the laws of the State of Mississippi, or natural gas districts, incorporated or organized for the purpose of building or constructing pipelines and appliances for the conveying and distribution of oil or gas, including carbon dioxide or other gaseous substances for use in connection with secondary or tertiary recovery projects located within the State of Mississippi for the enhanced recovery of liquid or gaseous hydrocarbons, or for the purpose of constructing, maintaining and operating lines for transmitting electricity for lighting, heating and power purposes, or for the purpose of constructing, maintaining and operating lines and appliances, for storing, transmitting and distributing water and for transmitting, treating and disposing of sewage, are * * * hereby empowered to exercise the right of eminent domain in the manner now provided by law, subject to the provision of subsection (2) of this section, and to build and construct the * * * saidpipelines and appliances along or across highways, waters, railroads, canals and public lands, above or below ground, but not in a manner to be dangerous to persons or property, nor to interfere with the common use of such roads, waters, railroads, canals and public lands.

     (2)  (a)  Any existing pipeline or appliance for the conveying and distribution of oil or gas, including carbon dioxide or other gaseous substances for use in connection with secondary or tertiary recovery products located within the State of Mississippi for the enhanced recovery of liquid or gaseous hydrocarbons, that was built, constructed or extended using the power of eminent domain, including threat of such, must be operated as a common carrier, as a condition of having exercised the power of eminent domain, including threat of such.

          (b)  If an entity intends to build or construct a new pipeline or appliance or extend an existing pipeline or appliance on or after July 1, 2018, for the conveying and distribution of oil or gas, including carbon dioxide or other gaseous substances for use in connection with secondary or tertiary recovery projects located within the State of Mississippi for the enhanced recovery of liquid or gaseous hydrocarbons, the entity must first make a declaration on a form developed by the State Oil and Gas Board declaring whether the entity desires to exercise the power of eminent domain to build, construct or extend the pipeline or appliance.  The form shall state that if the entity exercises the power of eminent domain to build, construct or extend the pipeline or appliance, the entity must operate the pipeline or appliance for which eminent domain was exercised to build, construct or extend as a common carrier, as a condition of exercising the power of eminent domain.

          (c)  No entity that is subject to this subsection may exercise the power of eminent domain to build, construct or extend a pipeline or appliance until the entity has made the required declaration on the form, and any entity that exercises the power of eminent domain to build, construct or extend a pipeline or appliance must operate the pipeline or appliance for which eminent domain was exercised to build, construct or extend as a common carrier.

     (3)  The board of supervisors of any county through which any such line may pass shall have the power to regulate, within its respective limits, the manner in which such lines and appliances shall be constructed and maintained on and above the highways and bridges of the county.  All such companies, associations of persons, municipalities, associations of municipalities, public utility districts authorized by and under the laws of the State of Mississippi or natural gas districts shall be responsible in damages for any injury caused by such construction or use thereof.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2018.