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Larson v. Sinclair Transportation Co.
2012 CO 36
Colo.
2012
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Background

  • Sinclair and predecessors held right-of-way easements crossing two parcels for a six-inch gasoline pipeline since 1963.
  • In 2006 Sinclair sought new adjacent easements to lay a second pipeline; negotiations failed and Sinclair petitioned for immediate possession.
  • Trial court held Sinclair had condemnation authority under section 38-5-105 and granted immediate possession, with a valuation hearing later.
  • Court of Appeals affirmed, interpreting section 38-5-105 to include petroleum pipelines as within condemnation authority for pipeline companies.
  • Colorado Supreme Court reversed, holding section 38-5-105 does not authorize condemnation for petroleum pipelines and that the power is limited to electric power infrastructure.
  • Dissenting opinions argued that pipeline companies, including petroleum pipelines, fall within the statute and should have eminent domain authority.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does §38-5-105 authorize condemnation for petroleum pipelines? Sinclair: pipeline companies may condemn under §38-5-105. Landowners: petroleum pipelines are not within the statute's scope. No; condemnation authority not granted for petroleum pipelines.
Does Article 5’s structure limit condemnation to electric power infrastructure? Sinclair's broader reading fits pipeline company language. Landowners: oil pipelines fall outside the built context of electric infrastructure. Yes; authority limited to electric power infrastructure.
Is the phrase 'such purposes' tied to electric power or oil/petroleum transport in §38-5-105? Petroleum pipelines fall within the purposes of section 105. Purposes relate to electric power systems, not petroleum. Such purposes refer to electric-related systems; petroleum not included.
Should the existence of other statutes authorizing pipeline condemnation affect the interpretation of §38-5-105 here? Overlapping statutes do not negate the scope of §38-5-105. Other statutes show the narrowly defined scope for condemnation. Overlaps do not render §38-5-105 ambiguous; petroleum pipelines are not covered.

Key Cases Cited

  • Coquina Oil Corp. v. Harry Kourlis Ranch, 643 P.2d 519 (Colo.1982) (condemnation power must be granted expressly or by clear implication)
  • Bly v. Story, 241 P.3d 529 (Colo.2010) (condemnation authority construed narrowly in private-entity contexts)
  • Town of Eaton v. Bouslog, 133 Colo. 130, 292 P.2d 343 (Colo.1956) (principles of narrowly constraining condemnation powers)
Read the full case

Case Details

Case Name: Larson v. Sinclair Transportation Co.
Court Name: Supreme Court of Colorado
Date Published: May 21, 2012
Citations: 2012 CO 36; 284 P.3d 42; 2012 Colo. LEXIS 349; 175 Oil & Gas Rep. 901; 2012 WL 1825229; No. 09SC966
Docket Number: No. 09SC966
Court Abbreviation: Colo.
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