House File 561 - Introduced HOUSE FILE 561 BY ZUMBACH A BILL FOR An Act providing for the compensation of losses due to the 1 installation of a pipeline on agricultural land. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1962YH (5) 88 da/rn

H.F. 561 Section 1. Section 479.45, subsection 2, Code 2019, is 1 amended to read as follows: 2 2. a. A claim for damage for future crop deficiency within 3 the easement strip shall not be precluded from renegotiation 4 under section 6B.52 on the grounds that it was apparent at the 5 time of settlement unless the settlement expressly releases the 6 pipeline company from claims for damage to the productivity of 7 the soil. The landowner shall notify the company in writing 8 fourteen days prior to harvest in each year to assess crop 9 deficiency. 10 b. A landowner whose land was affected by the installation 11 or construction of a pipeline, and who has elected to be 12 covered by crop insurance with the federal crop insurance 13 corporation or a private insurer authorized to offer a 14 multiperil crop insurance line of authority in this state 15 may elect to calculate a claim for damage caused by a crop 16 deficiency at the end of each crop year. The claim for damage 17 shall be based on the difference between the average yield of 18 the crop produced within the easement strip and the average 19 yield of the same crop produced on that portion of the parcel 20 or parcels of real estate where the easement strip is located, 21 but excluding the easement strip. The average yield for parcel 22 or parcels of real estate excluding the easement strip shall be 23 deemed to be the same as listed in the landowner’s insurance 24 policy for that crop year. The landowner may continue to claim 25 damage for five crop years after the pipeline has been wholly 26 abandoned. 27 Sec. 2. Section 479.46, subsection 1, Code 2019, is amended 28 to read as follows: 29 1. a. The county board of supervisors shall determine 30 when installation of a pipeline has been completed in that 31 county for the purposes of this section . Not less than ninety 32 days after the completion of installation, and if an agreement 33 cannot be made as to damages, a landowner whose land was 34 affected by the installation of the pipeline or a pipeline 35 -1- LSB 1962YH (5) 88 da/rn 1/ 6

H.F. 561 company may file with the board of supervisors a petition 1 asking that a compensation commission determine the damages 2 arising from the installation of the pipeline. 3 b. If the pipeline company files the petition under this 4 subsection, the landowner shall receive a notice of the 5 request in the same manner provided by the Iowa rules of civil 6 procedure for the personal service of original notice. The 7 landowner shall be deemed to have accepted any decision by the 8 county board of supervisors to approve the petition as provided 9 in subsection 2, unless the landowner responds by notifying the 10 board of supervisors in writing of an election to preserve the 11 landowner’s right to bring a cause of action in district court. 12 The landowner must deliver the response to the county board of 13 supervisors within sixty days after receiving the notice of the 14 petition. 15 Sec. 3. Section 479A.11, Code 2019, is amended to read as 16 follows: 17 479A.11 Damages. 18 1. A pipeline company operating pipelines or underground 19 storage shall be given reasonable access to the pipelines and 20 storage areas for the purpose of constructing, operating, 21 maintaining, or locating their pipes, pumps, pressure 22 apparatus, or other stations, wells, devices, or equipment 23 used in or upon a pipeline or storage area , but . However, the 24 pipeline company shall pay the owner of the lands for the right 25 of entry and the owner of crops on the land all damages caused 26 by entering, using, or occupying the lands for these purposes; 27 and shall pay to the owner of the lands, after the completion 28 of construction of the pipeline or storage, all damages caused 29 by settling of the soil along and above the pipeline, and 30 wash or erosion of the soil along the pipeline due to the 31 construction of the pipeline. However, this 32 2. A landowner whose land was affected by the installation 33 or construction of a pipeline, and who has elected to be 34 covered by crop insurance with the federal crop insurance 35 -2- LSB 1962YH (5) 88 da/rn 2/ 6

H.F. 561 corporation or a private insurer authorized to offer a 1 multiperil crop insurance line of authority in this state 2 may elect to calculate a claim for damage caused by a crop 3 deficiency at the end of each crop year. The claim for damage 4 shall be based on the difference between the average yield of 5 the crop produced within the easement strip and the average 6 yield of the same crop produced on that portion of the parcel 7 or parcels of real estate where the easement strip is located, 8 but excluding the easement strip. The average yield for parcel 9 or parcels of real estate excluding the easement strip shall be 10 deemed to be the same as listed in the landowner’s insurance 11 policy for that crop year. The landowner may continue to claim 12 damage for five crop years after the pipeline has been wholly 13 abandoned. 14 3. This section does not prevent the execution of an 15 agreement with other terms between the pipeline company and the 16 owner of the land or crops with reference to their use. 17 Sec. 4. Section 479B.17, Code 2019, is amended to read as 18 follows: 19 479B.17 Damages. 20 1. A pipeline company operating a pipeline or an 21 underground storage facility shall have reasonable access to 22 the pipeline or underground storage facility for the purpose 23 of constructing, operating, maintaining, or locating pipes, 24 pumps, pressure apparatus, or other stations, wells, devices, 25 or equipment used in or upon the pipeline or underground 26 storage facility. A pipeline company shall pay the owner of 27 the land for the right of entry and the owner of crops for all 28 damages caused by entering, using, or occupying the lands and 29 shall pay to the owner all damages caused by the completion 30 of construction of the pipeline due to wash or erosion of the 31 soil at or along the location of the pipeline and due to the 32 settling of the soil along and above the pipeline. However, 33 this 34 2. A landowner whose land was affected by the installation 35 -3- LSB 1962YH (5) 88 da/rn 3/ 6

H.F. 561 or construction of a pipeline, and who has elected to be 1 covered by crop insurance with the federal crop insurance 2 corporation or a private insurer authorized to offer a 3 multiperil crop insurance line of authority in this state 4 may elect to calculate a claim for damage caused by a crop 5 deficiency at the end of each crop year. The claim for damage 6 shall be based on the difference between the average yield of 7 the crop produced within the easement strip and the average 8 yield of the same crop produced on that portion of the parcel 9 or parcels of real estate where the easement strip is located, 10 but excluding the easement strip. The average yield for parcel 11 or parcels of real estate excluding the easement strip shall be 12 deemed to be the same as listed in the landowner’s insurance 13 policy for that crop year. The landowner may continue to claim 14 damage for five crop years after the pipeline has been wholly 15 abandoned. 16 3. This section does not prevent the execution of an 17 agreement between the pipeline company and the owner of the 18 land or crops with reference to the use of the land. 19 Sec. 5. Section 479B.30, subsection 1, Code 2019, is amended 20 to read as follows: 21 1. a. The county board of supervisors shall determine when 22 construction of a pipeline or underground storage facility has 23 been completed in that county for the purposes of this section . 24 Not less than ninety days after the completion of construction 25 and if an agreement cannot be made as to damages, a landowner 26 whose land was affected by the construction of the pipeline 27 or underground storage facility or the pipeline company may 28 file with the board of supervisors a petition asking that a 29 compensation commission determine the damages arising from 30 construction of the pipeline. 31 b. If the pipeline company files the petition under this 32 subsection, the landowner shall receive a notice of the 33 request in the same manner provided by the Iowa rules of civil 34 procedure for the personal service of original notice. The 35 -4- LSB 1962YH (5) 88 da/rn 4/ 6

H.F. 561 landowner shall be deemed to have accepted any decision by the 1 county board of supervisors to approve the petition as provided 2 in subsection 2, unless the landowner responds by notifying the 3 board of supervisors in writing of an election to preserve the 4 landowner’s right to bring a cause of action in district court. 5 The landowner must deliver the response to the county board of 6 supervisors within sixty days after receiving the notice of the 7 petition. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 GENERAL. This bill provides for a claim alleging a crop 12 deficiency within an easement strip over agricultural land due 13 to a pipeline carrying a solid, liquid, or gaseous substance. 14 The bill amends the following three Code chapters: Code 15 chapter 479 governing intrastate pipelines, Code chapter 479A 16 governing interstate pipelines, and Code chapter 479B governing 17 hazardous liquid pipelines. 18 DAMAGE BASED ON INSURANCE POLICY. The bill provides that 19 under each of the three Code chapters the landowner’s claim for 20 damage may be determined by calculating the difference between 21 the average yield of the crop produced within the easement and 22 the average yield for the same crop produced on the remaining 23 part of the agricultural land according to the landowner’s 24 insurance policy listing insurable crops for that same crop 25 year. The landowner may continue to claim damage for five 26 successive years after the pipeline has been abandoned. 27 CLAIM BROUGHT IN DISTRICT COURT. The bill also provides 28 that in the case of Code chapter 479 and Code chapter 479B 29 a landowner may elect not to utilize a proceeding conducted 30 by a compensation commission to determine damages caused by 31 the installation of the pipeline. Under current law, either 32 the landowner or the pipeline company may petition the board 33 of supervisors in the county where the pipeline is located 34 to establish such a commission. The bill provides that if 35 -5- LSB 1962YH (5) 88 da/rn 5/ 6

H.F. 561 the landowner receives a notice by a pipeline company that 1 it has filed such a petition, the landowner may respond by 2 notifying the board of the landowner’s election not to proceed 3 by decision of the commission but instead to preserve the 4 landowner’s right to bring a cause of action in district court. 5 -6- LSB 1962YH (5) 88 da/rn 6/ 6