Court

issues

pipeline

order

Condemnation cases will be

consolidated

By KURT NESBITT

Journal Staff Writer

ST. PAUL -- The Minnesota Supreme Court issued an order that consolidates all seven of the City of Hutchinson's condemnation cases in Martin, Watonwan, Brown, Nicollet, Sibley and McLeod counties into one large case Friday.

The cases were filed more than two months ago by a team of attorneys hired by the city's utilities commission to get the rights to use farmland for a $23 million natural gas pipeline project.

To date, some landowners have already settled with Hutchinson. However, a larger number are resisting HUC's offers, saying they represent too little compensation for too large a project.

HUC decided to pursue building its own pipeline after negotiations with Northern Natural Gas broke down. Hutchinson's contract with Northern for natural gas services expires in November.

Northern's representatives have indicated they probably won't renew their agreement with the city.

Bruce E. Hanson of Minneapolis, attorney representing HUC in the condemnation proceedings, said the court cases will affect the project's timeline in that HUC won't have voluntary easements with which to start the project. He said HUC is seeking quicker resolution to the proceedings for several reasons.

"At this point it's been over a year and a half and we need to move forward," he said. "The longer this goes, the more expensive it becomes, so it saves time and money."

Ann E. Kennedy of Minneapolis, attorney for SibRenFAIR, a group of landowners who say they don't oppose HUC's project but question its offers for compensation, said she thinks the consolidation is a "smart thing" but also voiced three objections to HUC's actions.

"We don't think HUC's eminent domain authority is clear. Second, HUC hasn't followed the proper procedure for condemnation. Third, it improperly assessed the damages done to landowners and it hasn't named all the interested parties including tenants," said Kennedy.

Chief Justice Kathleen Blatz ordered consolidated the seven cases because they have at least one common question of law and were so related that central management was best. Her ruling was issued on May 16.

She ordered District Judge Rex D. Stacey, who sits in Dakota County, to decide the future of some 130 tracts of land along the route, which starts the high-pressure natural gas pipe in Trimont in Martin County and ends in Hutchinson after traversing about 90 miles of farmland, including streams and the Watonwan, Little Cottonwood and Minnesota rivers.

Kennedy earlier sent a letter to Richard S. Slowes, the court commissioner of the Supreme Court, saying that her clients don't object to the consolidation but are concerned about HUC's urgings for quick resolutions of the cases.

"These concerns are based upon the complex issues which exist regarding HUC's alleged eminent domain power and the proper exercise of such power," wrote Kennedy on May 5. "Because our clients are not responsible for the timing or circumstances of the condemnation actions, they should not be penalized through expedited processing which impedes or in any way limits their procedural rights."

Kennedy also pointed out that HUC's certificate of need, which is a required step in the legal process toward completion of the project, is on appeal "leaving open certain basic questions, including whether HUC is indeed authorized to construct the pipeline and whether the pipeline will serve the public good or is even necessary."

Hanson said HUC has moved to dismiss the appeal of the certificate of need "on the basis that it is untimely." The appeal was made by Northern Natural Gas, which currently supplies natural gas to the city. The Court of Appeals has not yet issued a ruling on that matter.

Hanson said HUC's certificate is still valid and will stay that way unless the appellate court overturns the Minnesota Public Utilities Commission's decision, which was issued this winter.

Hearings for all landowners in Watonwan, Martin and Brown counties are set for June 4 in St. Peter and those in McLeod, Sibley and Nicollet counties will have a similar hearing in St. Peter on June 12.