Property Rights Abuse w/ Pooling & Pipelines
Forced pooling of gas wells looks something like eminent domain on steroids
Guest Commentary by Jay Taylor, Morgantown Dominion Post, October 25, 2015
When governments use eminent domain, we expect it to be a rare but necessary occurrence. To be used for something like a road, or maybe a school. It certainly wouldn’t be right just to take property away because someone else thinks they want it more. The Fifth Amendment imposes limitations on the exercise of eminent domain, the taking must be for public use and just compensation must be paid.
There is a similar discussion going on in politics in the area of forced pooling. In a nutshell, gas wells tend to go over large areas of land and you need to get permission from all those affected. Once deals are made with a certain percentage the other can then be forced into the deal.
Arguments can be made that once a vast majority agrees on a deal the hold out shouldn’t stop the deal.
But don’t they have rights too? Maybe they don’t want their property changed. Maybe they don’t believe in the taking of these resources. Maybe there is some other reason that we don’t know about. Who are we to say that they must comply with what the majority says is best for their property? That doesn’t sound like freedom at all. That is how tyrants rule.
Our country has a tradition of standing up for the little guy. We might not agree with the reasons for holdouts on these deals in the least, but why do we think government should have the final say here?
Some argue that forced pooling actually protects property owners by making the companies pay them something instead of the nothing they would get when the resources are drained to their neighbors property anyway. This is a fine argument, but in our country we have the freedom to do as we please and it is not government’s job to protect us from ourselves.
Is it intriguing that lawmakers support this. When these forced deals are made it is for a lower price than would have been made otherwise. This of course, means less money for the owner and reduced revenue. Usually lawmakers like more money to spend on things like roads.
Finally, we are talking about the taking of property for private use. This is not what was intended with eminent domain. Where does this stop? Where do we draw the line? When does someone’s property actually mean something?
We need to stand up for freedom and not allow greed to rule the day and make our laws. Legislators should be put on notice that supporting forced pooling could cost them their seats. Make sure your lawmaker knows that you want them to stand up for your rights.
Jay Taylor is chairman of the Taylor County Republican Executive Committee. He lives in Grafton, WV
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It should also be pointed out that forcing owners to sell for “market value” actually keeps market value artificially low. Forced pooling is what the industry wants when it is unwilling to pay *actual* market value — in other words, it’s unwilling to pay what the owner feels his or her property is worth, what the owner would be willing to sell for.
How crazy would it be if you were forced to sell your home to the next flipper who knocked on your door and offered to buy your house for far less than your family home was worth to you? That, my friends, is forced pooling in a nutshell.