Text: SSB00302 Text: SSB00304 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 479A.27 TIME OF REVERSION.
1 2 Underground storage rights are presumed to be extinguished
1 3 upon cessation of operations to inject and remove natural gas
1 4 in the naturally occurring subsurface stratum or naturally
1 5 occurring formation of the earth and are finally divested one
1 6 year after the pipeline company has received an abandonment
1 7 order from the federal energy regulatory commission or a
1 8 predecessor or successor of the commission. The surface or
1 9 adjacent landowner may acquire ownership of facilities
1 10 associated with an abandoned underground storage facility
1 11 pursuant to this chapter. If ownership of facilities is not
1 12 obtained, the pipeline company shall remove ancillary surface
1 13 facilities within one year of the presumed extinguishment of
1 14 the underground storage rights.
1 15 Sec. 2. NEW SECTION. 479A.28 REVERSION OF UNDERGROUND
1 16 STORAGE RIGHTS.
1 17 1. If underground storage rights are presumed to be ex-
1 18 tinguished under section 479A.27, the underground storage
1 19 rights pass to the surface landowner at the time of divestment
1 20 under section 479A.27.
1 21 2. Any surface property easement ancillary to the under-
1 22 ground storage project pass to the adjacent landowner or
1 23 landowners at the time of divestment under section 479A.27.
1 24 If different adjacent landowners are situated on either side
1 25 of the surface property easement involved, each adjacent
1 26 landowner takes to the center of the surface property easement
1 27 of the pipeline company.
1 28 3. Section 614.24, which requires the filing of a verified
1 29 claim, does not apply to reversion of property rights under
1 30 this section.
1 31 4. A surface landowner or an adjoining landowner may
1 32 perfect title under this section by filing an affidavit of
1 33 ownership with the county recorder in the county in which the
1 34 overlying or ancillary property of an underground storage
1 35 facility claimed by a landowner is located. The affidavit
2 1 shall include the name of the surface landowner or the
2 2 adjoining landowner, a description of the property or rights
2 3 subject to reversion, the present name of the pipeline
2 4 company, the jurisdiction, docket number, and date of
2 5 abandonment order of the federal energy regulatory commission
2 6 or a predecessor or successor of the commission, and if
2 7 applicable the approximate date the surface facilities
2 8 ancillary to the project were removed. A copy of the
2 9 affidavit must be mailed by the landowner by certified mail to
2 10 the pipeline company. The landowner is liable for taxes on
2 11 the property interest from the date the affidavit is filed.
2 12 Sec. 3. NEW SECTION. 479A.29 SALE OF UNDERGROUND STORAGE
2 13 RIGHTS.
2 14 Subject to section 479A.28, and except for a transfer to an
2 15 affiliate or successor of the pipeline company, when a pipe-
2 16 line company, its trustee, or its successor in interest has
2 17 interests in real property, other than an easement, but
2 18 including fixtures, ancillary to an underground storage
2 19 project adjacent to or upon an easement that is abandoned by
2 20 order of the federal energy regulatory commission or a
2 21 predecessor or successor of the commission, reorganization
2 22 court, or bankruptcy court, or when a pipeline company, its
2 23 trustee, or its successor in interest seeks to sell its
2 24 interests in that property under any other circumstance, the
2 25 pipeline company, its trustee, or its successor in interest
2 26 shall extend a written offer to sell at a fair market value
2 27 price to the persons holding leases, licenses, or permits upon
2 28 the property, or the owner of the adjoining or surface
2 29 property, allowing sixty days from the time of receipt for a
2 30 written response. If a disagreement arises between the
2 31 parties concerning the price or other terms of the sale
2 32 transaction, a party may make written application to the
2 33 compensation commission created under section 6B.4 to resolve
2 34 the disagreement. The application shall be made within sixty
2 35 days from the time an initial written response is mailed to
3 1 the pipeline company, trustee, or successor in interest by the
3 2 party wishing to purchase the property. The compensation
3 3 commission shall notify the department of inspections and
3 4 appeals which shall hear the controversy and make a final
3 5 determination of the fair market value of the property and the
3 6 other terms of the transaction which are in dispute, within
3 7 ninety days after the application is filed. All
3 8 correspondence shall be by certified mail.
3 9 The decision of the department of inspections and appeals
3 10 is binding on the parties, except that a party who seeks to
3 11 purchase the real property may withdraw the offer to purchase
3 12 within thirty days of the decision of the department. If a
3 13 withdrawal is made, the pipeline company, trustee, or suc-
3 14 cessor in interest may sell or dispose of the real property
3 15 without further order of the department of inspections and
3 16 appeals.
3 17 This section does not apply when underground storage rights
3 18 are conveyed for continued underground storage use.
3 19 Sec. 4. NEW SECTION. 479A.30 VALUING PROPERTY IN
3 20 CONTROVERSY.
3 21 The department of inspections and appeals' determination
3 22 and order shall be just and equitable and in the case of the
3 23 determination of the fair market value of the property, shall
3 24 be based in part upon at least three independent appraisals
3 25 prepared by certified appraisers. Each party shall select one
3 26 appraiser and each appraisal shall be paid for by the party
3 27 for whom the appraisal is prepared. The two appraisers shall
3 28 select a third appraiser and the costs of this appraisal shall
3 29 be divided equally between the parties. If the appraisers
3 30 selected by the parties cannot agree on selection of a third
3 31 appraiser, the compensation commission shall appoint a third
3 32 appraiser and the costs of this appraisal shall be divided
3 33 equally between the parties.
3 34 The department's determination and order is final agency
3 35 action for the purpose of judicial review by the district
4 1 court as provided in chapter 17A.
4 2 EXPLANATION
4 3 This bill provides for the reversion to the surface land-
4 4 owner or underground natural gas storage rights when storage
4 5 or recovery operations cease and the gas pipeline company
4 6 receives an abandonment order from the federal energy regula-
4 7 tory commission. Provisions are also made for adjacent land-
4 8 owners to acquire surface property rights ancillary to the
4 9 abandoned underground storage project. Similar to the rever-
4 10 sion of railroad rights-of-way to adjacent landowners, this
4 11 bill provides procedures for valuation and settling of dis-
4 12 putes.
4 13 LSB 2554SC 76
4 14 js/jw/5
Text: SSB00302 Text: SSB00304 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Thu Feb 8 16:38:58 CST 1996
URL: /DOCS/GA/76GA/Legislation/SSB/00300/SSB00303/950310.html
jhf