Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline-Texas, LLC

Texas permitted the exercise of eminent domain by private companies for public use in certain circumstances. One such circumstance in which a private company was permitted to exercise eminent domain was during the construction of a carbon-dioxide pipeline by a pipeline company serving as a common carrier. The Texas Natural Resources Code required only that an applicant to operate a carbon-dioxide pipeline indicate that the pipeline would be operated as a common carrier. In its application to the Texas Railroad Commission, Denbury Green Pipeline–Texas, LLC (Denbury) (plaintiff) merely checked a box on its application (Form T-4) indicating that its pipeline would be operated as a common carrier. Denbury also checked a box indicating that the carbon dioxide to be transported would be owned by others but transported for a fee. In addition, Denbury submitted a letter to the Railroad Commission, as required by the Natural Resources Code, expressly agreeing that the company was subject to the duties and obligations of a common carrier. The commission gave no notice to any affected parties, received and reviewed no evidence, and conducted no investigation regarding Denbury’s application. The commission granted Denbury a T-4 permit and confirmed its status as a common-carrier pipeline eight days after Denbury filed its application. Texas Rice Land Partners, Ltd. (Texas Rice) (defendant) owned property interests in two pieces of land along the pipeline route. Texas Rice refused entry by Denbury’s land surveyors when they attempted to survey the land in preparation for condemnation. Denbury sued Texas Rice for an injunction granting access to the land. The trial court resolved cross-motions for summary judgment in favor of Denbury. It found that Denbury was a common carrier and permanently enjoined Texas Rice from interfering with land surveys. The appellate court affirmed the trial court’s judgment. Texas Rice appealed to the Texas Supreme Court.