Tennessee Gas Easement Compensation Dictated by State Law

State law will decide how much compensation Tennessee Gas Pipeline Co. must pay for an easement over private property, the Third Circuit said July 23.

The Fifth Amendment requires the United States government to pay just compensation when it takes private property.

Tennessee Gas, a Kinder Morgan Inc. subsidiary, is a private company, but has been given eminent domain power by federal law. It exercises the power with a certificate of public convenience from the Federal Energy Regulatory Commission, Judge Joseph A. Greenaway Jr. said for the court.

The Natural Gas Act of 1938 requires that the “practice and procedure” ...