HF 2683 (LSB 6625HV (1) 91)

HOUSE FILE 2683

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 691)

A BILL FOR

An Act relating to pipeline projects, including damage claims and landowner rights, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 479.25, Code 2026, is amended to read as follows:
   479.25  Damages.
   1.  A pipeline company operating a pipeline or a gas storage area shall have reasonable access to the pipeline or gas storage area for the purpose of constructing, operating, maintaining, or locating pipes, pumps, pressure apparatus or other stations, wells, devices, or equipment used in or upon the pipeline or gas storage area; shall pay the owner of the land for the right of entry and the owner of crops for all damages caused by entering, using, or occupying the land; and shall pay to the owner all damages caused by the completion of construction of the pipeline due to wash or erosion of the soil at or along the location of the pipeline and due to the settling of the soil along and above the pipeline. However, this section shall not prevent the execution of an agreement between the pipeline company and the owner of land or crops with reference to the use of the land.
   2.  A claim for damages pursuant to this section shall not be precluded from renegotiation under section 6B.52 on the grounds that the damages were apparent at the time of settlement or on the grounds that more than five years have elapsed since the date of the settlement.
   3.  An owner of the land or the owner of the crops that incurred damage under this section is eligible for compensation for damages. An owner of the land or the owner of the crops may file an action for relief against a pipeline company in small claims or district court for a violation of this section or pursue remedies under section 479.45 or 479.46.
    Sec. 2.  Section 479.29, subsection 5, Code 2026, is amended to read as follows:
   5.  If the pipeline company or its contractor does not comply with the requirements of this section, with the land restoration plan, or with an independent agreement on land restoration or line location executed in accordance with subsection 10, the county board of supervisors or an affected landowner may petition the commission for an order requiring corrective action to be taken. In addition, the county board of supervisors or the landowner may file a complaint with the commission seeking imposition of civil penalties pursuant to section 479.31.  The landowner may supply a copy of the complaint to the county board of supervisors where the complaint originated.
    Sec. 3.  Section 479.45, Code 2026, is amended to read as follows:
   479.45  Particular damage claims.
   1.  Compensable losses shall include, but are not limited to, all of the following:
   a.  Loss or reduced yield of crops or forage on the pipeline right-of-way, whether caused directly by construction or from disturbance of usual farm operations.
   b.  Loss or reduced yield of crops or yield from land near the pipeline right-of-way resulting from lack of timely access to the land or other disturbance of usual farm operations, including interference with irrigation or drainage.
   c.  Fertilizer, lime, or organic material applied by the landowner to restore land disturbed by construction to full productivity.
   d.  Loss of or damage to trees of commercial or other value that occurs at the time of construction, restoration, or at the time of any subsequent work by the pipeline company.
   e.  The cost of or losses in moving or relocating livestock, and the loss of gain by or the death or injury of livestock caused by the interruption or relocation of normal feeding.
   f.  Erosion and soil compaction on lands attributable to pipeline construction.
   g.  Damage to farm equipment caused by striking a pipeline, debris, or other material reasonably associated with pipeline construction while engaged in normal farming operations as defined in section 480.1.
   h.  Damage to soil or water conservation structures caused by construction, restoration, or subsequent work by the pipeline company including but not limited to terraces, grassed waterways, water and sediment control basins, ponds, saturated buffers, and biofilters.
   i.  Damage to irrigation or drainage systems caused by construction, restoration, or subsequent work by the pipeline company.
   2.  A claim for damage for future crop deficiency within the easement strip damages incurred under this section shall not be precluded from renegotiation under section 6B.52 on the grounds that it was apparent at the time of settlement unless the settlement expressly releases the pipeline company from claims for damage to the productivity of the soil or on the grounds that more than five years have elapsed since the date of the settlement. The landowner shall notify the company in writing fourteen days prior to harvest in each year to assess crop deficiency or by providing global positioning system yield monitoring data or similar assessment data demonstrating crop deficiency to the company.
   3.  A landowner that incurred damage under this section is eligible for compensation for damages. The landowner may file an action for relief against a pipeline company in small claims or district court for a violation of this section or pursue remedies under section 479B.30.
   4.  For the purposes of this section, “landowner” also includes a farm tenant.
    Sec. 4.  Section 479A.11, Code 2026, is amended to read as follows:
   479A.11  Damages.
   1.  A pipeline company operating pipelines or underground storage shall be given reasonable access to the pipelines and storage areas for the purpose of constructing, operating, maintaining, or locating their its pipes, pumps, pressure apparatus, or other stations, wells, devices, or equipment used in or upon a pipeline or storage area, but shall pay the owner of the lands for the right of entry and the owner of crops on the land all damages caused by entering, using, or occupying the lands for these purposes; and shall pay to the owner of the lands, after the completion of construction of the pipeline or storage, all damages caused by settling of the soil along and above the pipeline, and wash or erosion of the soil along the pipeline due to the construction of the pipeline. However, this section does not prevent the execution of an agreement with other terms between the pipeline company and the owner of the land or crops with reference to their use.
   2.  A claim for damages pursuant to this section shall not be precluded from renegotiation under section 6B.52 on the grounds that the damages were apparent at the time of settlement or on the grounds that more than five years have elapsed since the date of the settlement.
   3.  An owner of the land or an owner of the crops that incurred damage under this section is eligible for compensation for damages. An owner of the land or an owner of the crops may file an action for relief against a pipeline company in small claims or district court for a violation of this section.
    Sec. 5.  Section 479B.20, subsection 5, Code 2026, is amended to read as follows:
   5.  If the pipeline company or its contractor does not comply with the requirements of this section, with the land restoration plan or line location, or with an independent agreement on land restoration executed in accordance with subsection 10, the county board of supervisors or an affected landowner may petition the commission for an order requiring corrective action to be taken. In addition, the county board of supervisors or the landowner may file a complaint with the commission seeking imposition of civil penalties under section 479B.21.  The landowner may supply a copy of the complaint to the county board of supervisors where the complaint originated.
    Sec. 6.  Section 479B.20, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  13.  For purposes of this section, “landowner” also includes a farm tenant.
    Sec. 7.  Section 479B.29, Code 2026, is amended to read as follows:
   479B.29  Particular damage claims.
   1.  Compensable losses shall include, but are not limited to, all of the following:
   a.  Loss or reduced yield of crops or forage on the pipeline right-of-way, whether caused directly by construction or from disturbance of usual farm operations.
   b.  Loss or reduced yield of crops or yield from land near the pipeline right-of-way resulting from lack of timely access to the land or other disturbance of usual farm operations, including interference with irrigation or drainage.
   c.  Fertilizer, lime, or organic material applied by the landowner to restore land disturbed by construction to full productivity.
   d.  Loss of or damage to trees of commercial or other value that occurs at the time of construction, restoration, or at the time of any subsequent work by the pipeline company.
   e.  The cost of or losses in moving or relocating livestock, and the loss of gain by or the death or injury of livestock caused by the interruption or relocation of normal feeding.
   f.  Erosion and soil compaction on lands attributable to pipeline construction.
   g.  Damage to farm equipment caused by striking a pipeline, debris, or other material reasonably associated with pipeline construction while engaged in normal farming operations as defined in section 480.1.
   h.  Damage to soil or water conservation structures caused by construction, restoration, or subsequent work by the pipeline company including but not limited to terraces, grassed waterways, water and sediment control basins, ponds, saturated buffers, and biofilters.
   i.  Damage to irrigation or drainage systems caused by construction, restoration, or subsequent work by the pipeline company.
   2.  A claim for damage for future crop deficiency within the easement strip damages incurred under this section shall not be precluded from renegotiation under section 6B.52 on the grounds that it was apparent at the time of settlement unless the settlement expressly releases the pipeline company from claims for damage to the productivity of the soil or on the grounds that more than five years have elapsed since the date of the settlement. The landowner shall notify the pipeline company in writing fourteen days prior to harvest in each year to assess crop deficiency or by providing global positioning system yield monitoring data or similar assessment data demonstrating crop deficiency to the company.
   3.  A landowner that incurred damage under this section is eligible for compensation for damages. The landowner may file an action for relief against a pipeline company in small claims or district court for a violation of this section or pursue remedies under section 479B.30.
   4.  For the purposes of this section, “landowner” also includes a farm tenant.
    Sec. 8.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to pipeline projects, including damage claims and landowner rights.
    Under current law, landowners and crop owners who incur damages from the construction, reconstruction, maintenance, or operation of pipelines are eligible for compensation. The bill provides that claims for damages are not precluded from renegotiation under Code section 6B.52 solely because the damages were apparent at the time of settlement or because more than five years have elapsed since settlement. The bill further authorizes a landowner or crop owner to file an action for relief against a pipeline company in small claims or district court for violations of the damage payment provisions, in addition to existing remedies.
   The bill authorizes landowners, in addition to county boards of supervisors, to petition the utilities commission for corrective action and to file complaints seeking civil penalties for violations of land restoration requirements.
   The bill expands the list of compensable losses resulting from pipeline construction, operation, restoration, or subsequent work to include loss or reduced yield as a result of drainage, soil compaction, damage to soil and water conservation structures, and damage to irrigation systems and allows for global positioning system yield monitoring data or similar assessment data to be used for demonstrating any crop deficiency.
   The bill amends a provision related to interstate natural gas pipelines to make conforming changes for damage claims and available relief actions.
   The bill amends provisions related to hazardous liquid pipelines and underground storage facilities, including related to damage claims, available relief actions, petitions for corrective action, and compensable losses.
   The bill takes effect upon enactment.