On Friday, January 6, 2017, the Texas Supreme Court issued its long-awaited opinion in Denbury Green Pipeline–Texas, LLC v. Texas Rice Land Partners, Ltd. (“Texas Rice II”), [1]15-0225, 2017 WL 65470 (Tex. Jan. 6, 2017). holding that:
- Denbury’s evidence of a post-construction transportation agreement with an unaffiliated customer was relevant to the “reasonable probability test,”
- rejecting a rule that the requisite intent must exist at the time the pipeline was contemplated,
- rejecting the appellate court’s “substantial public interest” test, and
- holding that Denbury had “conclusively” established its qualification as a common carrier with the power of eminent domain.
The opinion provides clarity as to the test previously set forth in Texas Rice Land Partners, Ltd. v. Denbury Green Pipeline–Texas, LLC (“Texas Rice I”), [2]363 S.W.3d 192, 202 (Tex. 2012). and the types of evidence relevant to that determination.
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