Legal Trend: No Eminent Domain to Private Company that Does not Provide a Public Benefit Within the State.

Where did a state Supreme Court deny eminent domain power to a pipeline? Kentucky.

What do legal pundits say was the issue triggering the denial of eminent domain authority? That the pipeline isn’t regulated as a utility under Kentucky law.

Why wouldn’t a pipeline be regulated under Kentucky law? Because Kentucky law restricts regulated utilities to those operating within the state. The proposed pipeline would traverse the state but not deliver goods, therefore wouldn’t operate, in the state.

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