Date: 04-05-2013

Case Style: DCP Southern Hills Pipeline, LLC v. Leonard E. Wallace

Case Number: CJ-2012-127

Judge: Louis A. Duel

Court: District Court, Logan County, Oklahoma

Plaintiff's Attorney: Jayne Jarnigan Robertson

Defendant's Attorney: Robert N. Sheets

Description: DCP Southern Hills Pipeline, LLC sued Leonard E. Wallace and others on eminent domain theories claiming:

Plaintiff DCP Southern Hills Pipeline, LLC, for its cause of action against the Defendants
Leonard E. Wallace, Margery L. Wallace, Anna Wallace, United-But Homes, L.L.C., Sohio
Petroleum Company a/Ida Standard Oil Production Company, County Treasurer of Logan
County and Board of County Commissioners of Logan County, alleges and states as follows:

1. Plaintiff is a Delaware limited liability company, duly registered with the Oklahoma Secretary of State and authorized to do business in the State of Oklahoma.

2. Plaintiff is engaged in business as a pipeline company.

3. Plaintiff filed an acceptance with the Oklahoma Corporation Commission of 52 Okla.Stat. § 21, et seq. and 52 Okla.Stat. § 51, et seq., and of the Constitution of the State of Oklahoma; therefore, Plaintiff is authorized and empowered by the Constitution and statutes of the State of Oklahoma to exercise the right of eminent domain in furtherance of its purposes as a pipeline company, including acquisition of necessary easements and rights of way for the construction and operation of common carrier natural gas liquids pipelines.

4. Plaintiff has deemed it advisable and necessary to construct, operate and maintain a pipeline and such other equipment and facilities as are required upon and across certain lands located in Logan County, Oklahoma, more particularly described as the West Half (W/2) of the Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma, LESS AND EXCEPT the North 495 feet of the West Half (W12) of the Southeast Quarter (SEI4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma; and LESS AND EXCEPT the Southeast Quarter (SE/4) of the Southwest Quarter (SWI4) of the said Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma; and LESS AND EXCEPT the South One Hundred Feet (100’) of the Northeast Quarter of the Southwest Quarter (SWI4) of the said Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma; and LESS AND EXCEPT a tract of land located in the West Half (W/2) of the Southeast Quarter (SF14) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma, being more particularly described as follows: Commencing at the Southwest corner of said West Half (W12); Thence East along the South line of said West Half (W/2) a distance of 345.50 feet to the point of Beginning; Thence continuing East along the South line of said West Half (W/2) a distance of 314.50 feet; Thence North and parallel with the West line of said West Half (W12) a distance of 760 feet; Thence East and parallel with the South line of said West Half (W/2) a distance of 660 feet to a point on the East line of said West Half (W12); Thence North along the East line of said West Half (W/2) a distance of 560 feet; Thence West and parallel with the North line of said West Half (W/2) a distance of 377.33 feet; Thence South 3426’ 16” West a distance of 1056.88 feet; Thence South and parallel with the West line of said West Half(W/2) a distance of 448.00 feet to the Point of Beginning (the “Property”).

5. The necessary easement and right of way for construction, operation and maintenance of the pipeline will extend for a total distance of2 1.02 rods across the Property, as shown by the survey attached as Exhibit “A” and made a part hereof

6. Defendants Leonard B. Wallace and Margery L. Wallace are the record owners of thc Property.

7. Defendants Anna Wallace, United-Bilt Homes, L.L.C., Sohio Petroleum
Company a/k/a Standard Oil Production Company, County Treasurer of Logan County and
Board of County Commissioners of Logan County may claim some right, title or interest in the
Property or in the commissioners’ award rendered herein by virtue of tenancies, unrecorded
instruments, easements, mortgages, or ad valorem taxes which may be due or payable.

8. In order to operate and maintain the pipeline, it is necessary that Plaintiff, its successors and assigns, have and obtain a permanent easement fifty feet (50’) in width along the centerline route and location over, through, under, and across the Property as more particularly described on Exhibit “A” attached hereto and made a part hereof (the “Permanent Easement”), for the right of ingress and egress, and for the right now or in the future to survey, construct, lay, maintain, inspect, erect, alter, operate, protect, repair, replace with the same or different size pipe and remove one (1) pipeline (the “Pipeline”) and any above ground valves, appurtenances, cathodic protection equipment, including but not limited to necessary rectifiers mounted above ground on poles with wires connecting to a source of AC or DC electricity, ground beds, cables, and deep wells; communication lines, electric lines and appurtenances (collectively the “Facilities”), together with fences and structures as required to enclose any of the above-ground Facilities at the sole discretion of Plaintiff, for the use and prudent operation of the Pipeline for gathering and transportation of hydrocarbons and any liquids that can be transported through the Pipeline. Plaintiff further requires that the Permanent Easement include such portions of the surface as are required now or in the future for the construction, installation, operation and maintenance of the Pipeline and Facilities, and further Plaintiff shall have the right to remove or clear obstructions within the Permanent Easement that may injure, endanger, or interfere with the construction, installation, operation, maintenance or removal of the Pipeline or Facilities, including without limitation, trees, shrubs and brush.

9. Plaintiff will bury the Pipeline to a sufficient depth based on soil conditions and terrain, except insofar as surface installation of Facilities is required. Further, Plaintiff will restore the ground surface as nearly as practicable to the original contour existing immediately prior to commencement of any work, will provide suitable ditch cross-overs during construction, and will install H-frame bracing before cutting any fences.

10. During initial construction and installation of the Pipeline and Facilities, it is also necessary that Plaintiff have additional temporary workspace of twenty-five feet (25’) in width adjacent to and parallel with the Permanent Easement (the “Temporary Easement”), including but not limited to rights of ingress and egress, together with such additional workspace as necessary for difficult crossings such as roads, creeks and railroads, which Temporary Easement shall terminate by its own terms six (6) months after such date as the Pipeline and Facilities shall be fully and completely constructed on the Property.

11. The owner of the Property shall have and retain the full right to use and enjoy said property and premises subject only to the easement rights to be acquired by Plaintiff in this proceeding, and except further that it is necessary that Defendants, their successors and assigns, be restricted from (a) impounding water or building, constructing, creating, installing, or permitting others to impound water, or to build, construct, create or install any buildings, structures, fences, trees, engineering works or any obstructions on or within the Permanent Easement, (b) altering the grade of the Permanent Easement without the express written consent of the Plaintiff, and (c) placing or permitting others to place any debris on or within the Permanent Easement.

12. Plaintiff shall have the right to clear and keep cleared from within the Permanent Easement all trees, brush, shrubs, undergrowth, buildings, structures, improvements, or other obstructions, though Plaintiff shall have no obligation to do so. After the Pipeline and Facilities shall have been installed, Plaintiff shall not be liable for damages caused within the Permanent Easement by keeping the Permanent Easement clear of trees, brush, shrubs, undergrowth, buildings, structures, improvements, or other obstructions in the exercise of its rights acquired herein.

13. Plaintiff shall have the right, at its option, to install gates in fences crossing the Permanent Easement.

14. The Permanent Easement sought to be acquired by Plaintiff upon and across the Property is necessary in order to perform Plaintiffs duties as a common carrier natural gas liquids pipeline. Plaintiff has determined the necessity of same by filing its acceptance with the Oklahoma Corporation Commission as shown by the Acceptance attached hereto as Exhibit “B” and made a part hereof

15. Prior to the commencement of this action, Plaintiff endeavored in good faith to acquire by purchase from Defendants Leonard E. Wallace and Margery L. Wallace an appropriate easement for the Pipeline and Facilities, but said Defendants have reffised and continue to refuse to grant Plaintiff the necessary easement for such Pipeline and Facilities for
any fair and reasonable consideration.

WHEREFORE, plaintiff prays that the Court (a) set a date for the hearing of this Petition, (b) upon such hearing, after due and legal notice has been given to the Defendants ordered by this Court and as prescribed by law, enter an order appointing three disinterested freeholders of Logan County, Oklahoma, to be selected by the Court as Commissioners, and who are not interested in a like question, to inspect the Property and to consider the injury which the owner of the Property will or may sustain by reason of the appropriation of the same for the public purpose set forth above, and to determine just compensation due to the owner, and to forthwith make their report in writing to the Court setting forth the amount payable by Plaintiff as damages to the Property for the taking of the Permanent Easement and Temporary Easement, and (e) that upon payment to the Court Clerk of such sum as may be assessed and reported herein, an easement and right of way across, through, over and under the Property be vested in Plaintiff and Plaintiff be authorized to enter upon the Property and to take, appropriate and use the same for the purposes set forth above.

COME NOW the undersigned Commissioners heretofore appointed by the Court to inspect the real property hereinafter described and to consider the injury which the owner(s) thereof may sustain by reason of the taking of permanent and temporary easements for construction and operation of a pipeline as set forth on the survey attached hereto as Exhibit “A” and made a part hereof by reference, all as set forth in the Petition filed herein, and respectfUlly report that we were and are freeholders of Logan County, Oklahoma, not interested in this or any like question, and pursuant to the Order Appointing Commissioners heretofore entered on the day of May, 2012, took the oath prescribed by law, and thereupon proceeded to inspect the hereinafter described real property:

The West Half (W/2) of the Southeast Quarter (SE/4) of Section Eight (8),
Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma,
LESS AND EXCEPT the North 495 feet of the West Half(W/2) of the Southeast
Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2)
West, Logan County, Oklahoma; and LESS AND EXCEPT the Southeast Quarter
(SE/4) of the Southwest Quarter (SW/4) of the said Southeast Quarter (SEI4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma; and LESS AND EXCEPT the South One Hundred Feet (100’) of the Northeast Quarter of the Southwest Quarter (SWI4) of the said Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma; and LESS AND EXCEPT a tract of land located in the West Half (W/2) of the Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma, being more particularly described as follows: Commencing at the Southwest corner of said West Half (W/2); Thence East along the South line of said West Half (W/2) a distance of 345.50 feet to the point of Beginning; Thence continuing East along the South line of said West Half (W/2) a distance of 314.50 feet; Thence North and parallel with the West line of said West Half (W/2) a distance of 760 feet; Thence East and parallel with the South line of said West Half (W/2) a distance of 660 feet to a point on the East line of said West Half (W/2); Thence North along the East line of said West Half (W/2) a distance of 560 feet; Thence West and parallel with the North line of said West Half (W/2) a distance of 377.33 feet; Thence South 3426’ 16” West a distance of 1056.88 feet; Thence South and parallel with the West line of said West Half (W/2) a distance of 448.00 feet to the Point of Beginning (the “Property”).
We further report that we have considered the fair market value of the permanent and temporary easements, plus any injury to the Property left remaining after the taking of the easements, and we hereby assess such injury and just compensation due to the owners, lessees or others claiming any right, title or interest in the Property, to be as follows:

$11,349

We further report that we have well and truly executed our duties as Commissioners herein and are entitled to be paid the following sums as reasonable fees for our services herein:
$375 for each Commissioner.

Outcome: This matter comes on for consideration this 5th day of April, 2013, Plaintiff DCP Southern I-Iills Pipeline, LLC appearing by and through its counsel Jayne Jarnigan Robertson and Defendants appearing not. Upon review of the file, the Court finds:
1. The Defendants were properly served with notice herein.

2. Commissioners were appointed by the Court, signed their oath and filed their
of Commissioners (“Report”) on May 29, 2012. The damages assessed in the Report
were in the amount of $11,349.00.

3. The Defendants were properly notified of the filing of the Report.

4. The Plaintiff deposited the award, along with appropriate poundage, into the Court’s fund on May 31, 2012. Plaintiff has paid all court costs and fees of the Commissioners.

5. No party filed written exceptions to the Report of Commissioners within the time limit set forth in 66 Okla.Stat § 55.

6. Further, no party filed a demand for jury trial within the time limit set forth in 66 Okla.Stat. § 55.

7. By Order entered August 3, 2012, the Court Clerk was directed to disburse the amount of the Commissioners’ award to Defendants Leonard E. Wallace, Margery L. Wallace and Anna Wallace, and such funds were so disbursed as evidenced by Affidavit for Receipt of Funds filed August 7, 2012.
8. Final judgment confinning the Report and confirming possession and title in the Plaintiff is therefore appropriate.

IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that Plaintiff DCP Southern Hills Pipeline, LLC (“DCP”) is a common carrier natural gas liquids pipeline and has determined the necessity of taking and acquiring property and rights by eminent domain by filing its acceptance with the Oklahoma Corporation Commission.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that DCP has the right of eminent domain to have and obtain, and title is hereby vested in DCP, effective as of May 31, 2012, to the following:

A permanent easement fifty feet (50’) in width along the centerline route and location
over, through, under, and across the West Half (W/2) of the Southeast Quarter (SE/4) of
Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County,
Oklahoma, LESS AND EXCEPT the North 495 feet of the West Half (W/2) of the Southeast
Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan
County, Oklahoma; and LESS AND EXCEPT the Southeast Quarter (SE/4) of the Southwest
Quarter (SW/4) of the said Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen
(15) North, Range Two (2) West, Logan County, Oklahoma; and LESS AND EXCEPT the

South One Hundred Feet (100’) of the Northeast Quarter of the Southwest Quarter (SW/4) of the said Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West, Logan County, Oklahoma; and LESS AND EXCEPT a tract of land located in the West Half (W/2) of the Southeast Quarter (SE/4) of Section Eight (8), Township Fifteen (15) North, Range Two (2) West,
Logan County, Oklahoma, being more particularly described as follows:

Commencing at the Southwest corner of said West Half (W/2); Thence East along the South line of said West Half (W/2) a distance of 345.50 feet to the point of Beginning; Thence continuing East along the South line of said West Half (W/2) a distance of 3 14.50 feet; Thence North and parallel with the West line of said West Half (W/2) a distance of 760 feet; Thence East and parallel with the South line of said West Half (W!2) a distance of 660 feet to a point on the East line of said West Half (W/2); Thence North along the East line of said West Half (W/2) a distance of 560 feet; Thence West and parallel with the North line of said West Half(W/2) a distance of 377.33 feet; Thence South 34°26’16” West a distance of 1056.88 feet; Thence South and parallel with the West line of said West Half (W/2) a distance of 448.00 feet to the Point of Beginning (the “Property”), as more particularly described on Exhibit “A” attached hereto and made a part hereof (the “Permanent Easement”), for the right of ingress and egress, and for the right now or in the future to survey, construct, lay, maintain, inspect, erect, alter, operate, protect, repair, replace with the same or different size pipe and remove one (1) pipeline (the “Pipeline”) and any above ground valves, appurtenances, cathodic protection equipment, including but not limited to necessary rectifiers mounted above ground on poles with wires connecting to a source of AC or DC electricity, ground beds, cables, and deep wells; communication lines, electric lines and appurtenances (collectively the “Facilities”), together with fences and structures as required to enclose any of the above-ground Facilities at the sole
discretion of DCP, for the use and prudent operation of the Pipeline for gathering and transportation of hydrocarbons and any liquids that can be transported through the Pipeline. The Permanent Easement shall include such portions of the surface of the Property as are required now or in the future for the construction, installation, operation and maintenance of the Pipeline and Facilities. DCP shall have the right to remove or clear obstructions within the Permanent Easement that may injure, endanger, or interfere with the construction, installation, operation, maintenance or removal of the Pipeline or Facilities, including without limitation, trees, shrubs and brush.

DCP will bury the Pipeline to a sufficient depth based on soil conditions and terrain, except insofar as surface installation of Facilities is required. Further, DCP will restore the ground surface as nearly as practicable to the original contour existing immediately prior to commencement of any work, will provide suitable ditch cross-overs during construction, and will install H-frame bracing before cutting any fences.

During initial construction and installation of the Pipeline and Facilities, DCP shall have additional temporary workspace of twenty-five feet (25’) in width adjacent to and parallel with the Permanent Easement (the “Temporary Easement”), including but not limited to rights of ingress and egress, together with such additional workspace as necessary for difficult crossings such as roads, creeks and railroads, which Temporary Easement shall terminate by its own terms six (6) months after such date as the Pipeline and Facilities shall be fully and completely constructed on the Property.

The owners of the Property, their successors and assigns, shall have and retain the full right to use and enjoy said Property and premises subject only to the easement rights hereby conveyed to DCP, and except further that it is necessary that the owners, their successors and assigns, be restricted from (a) impounding water or building, constructing, creating, installing, or permitting others to impound water, or to build, construct, create or install any buildings, structures, fences, trees, engineering works or any obstructions on or within the Permancnt Easement, (b) altering the grade of the Permanent Easement without the express written consent of DCP, and (c) placing or permitting others to place any debris on or within the Permanent Easement.

DCP shall have the right to clear and keep cleared from within the Permanent Easement all trees, brush, shrubs, undergrowth, buildings, structures, improvements, or other obstructions, though DCP shall have no obligation to do so. After the Pipeline and Facilities shall have been installed, DCP shall not be liable for damages caused within the Permanent Easement by keeping the Permanent Easement clear of trees, brush, shrubs, undergrowth, buildings, structures, improvements, or other obstructions in the exercise of its rights acquired herein.

DCP shall have the right, at its option, to install gates in fences crossing the Permanent Easement.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all orders appointing commissioners, instructions to commissioners, and oath of commissioners filed herein are in proper form, and that the Report of Commissioners filed herein on May 29, 2012, is hereby confirmed and approved in all respects.

Plaintiff's Experts:

Defendant's Experts:

Comments: