House File 561 - IntroducedA Bill ForAn Act 1providing for the compensation of losses due to the
2installation of a pipeline on agricultural land.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 479.45, subsection 2, Code 2019, is
2amended to read as follows:
   32.  a.  A claim for damage for future crop deficiency within
4the easement strip shall not be precluded from renegotiation
5under section 6B.52 on the grounds that it was apparent at the
6time of settlement unless the settlement expressly releases the
7pipeline company from claims for damage to the productivity of
8the soil. The landowner shall notify the company in writing
9fourteen days prior to harvest in each year to assess crop
10deficiency.
   11b.  A landowner whose land was affected by the installation
12or construction of a pipeline, and who has elected to be
13covered by crop insurance with the federal crop insurance
14corporation or a private insurer authorized to offer a
15multiperil crop insurance line of authority in this state
16may elect to calculate a claim for damage caused by a crop
17deficiency at the end of each crop year. The claim for damage
18shall be based on the difference between the average yield of
19the crop produced within the easement strip and the average
20yield of the same crop produced on that portion of the parcel
21or parcels of real estate where the easement strip is located,
22but excluding the easement strip. The average yield for parcel
23or parcels of real estate excluding the easement strip shall be
24deemed to be the same as listed in the landowner’s insurance
25policy for that crop year. The landowner may continue to claim
26damage for five crop years after the pipeline has been wholly
27abandoned.
28   Sec. 2.  Section 479.46, subsection 1, Code 2019, is amended
29to read as follows:
   301.  a.  The county board of supervisors shall determine
31when installation of a pipeline has been completed in that
32county for the purposes of this section. Not less than ninety
33days after the completion of installation, and if an agreement
34cannot be made as to damages, a landowner whose land was
35affected by the installation of the pipeline or a pipeline
-1-1company may file with the board of supervisors a petition
2asking that a compensation commission determine the damages
3arising from the installation of the pipeline.
   4b.  If the pipeline company files the petition under this
5subsection, the landowner shall receive a notice of the
6request in the same manner provided by the Iowa rules of civil
7procedure for the personal service of original notice. The
8landowner shall be deemed to have accepted any decision by the
9county board of supervisors to approve the petition as provided
10in subsection 2, unless the landowner responds by notifying the
11board of supervisors in writing of an election to preserve the
12landowner’s right to bring a cause of action in district court.
13The landowner must deliver the response to the county board of
14supervisors within sixty days after receiving the notice of the
15petition.
16   Sec. 3.  Section 479A.11, Code 2019, is amended to read as
17follows:
   18479A.11  Damages.
   191.  A pipeline company operating pipelines or underground
20storage shall be given reasonable access to the pipelines and
21storage areas for the purpose of constructing, operating,
22maintaining, or locating their pipes, pumps, pressure
23apparatus, or other stations, wells, devices, or equipment
24used in or upon a pipeline or storage area, but. However, the
25pipeline company
shall pay the owner of the lands for the right
26of entry and the owner of crops on the land all damages caused
27by entering, using, or occupying the lands for these purposes;
28and shall pay to the owner of the lands, after the completion
29of construction of the pipeline or storage, all damages caused
30by settling of the soil along and above the pipeline, and
31wash or erosion of the soil along the pipeline due to the
32construction of the pipeline. However, this
   332.  A landowner whose land was affected by the installation
34or construction of a pipeline, and who has elected to be
35covered by crop insurance with the federal crop insurance
-2-1corporation or a private insurer authorized to offer a
2multiperil crop insurance line of authority in this state
3may elect to calculate a claim for damage caused by a crop
4deficiency at the end of each crop year. The claim for damage
5shall be based on the difference between the average yield of
6the crop produced within the easement strip and the average
7yield of the same crop produced on that portion of the parcel
8or parcels of real estate where the easement strip is located,
9but excluding the easement strip. The average yield for parcel
10or parcels of real estate excluding the easement strip shall be
11deemed to be the same as listed in the landowner’s insurance
12policy for that crop year. The landowner may continue to claim
13damage for five crop years after the pipeline has been wholly
14abandoned.
   153.   Thissection does not prevent the execution of an
16agreement with other terms between the pipeline company and the
17owner of the land or crops with reference to their use.
18   Sec. 4.  Section 479B.17, Code 2019, is amended to read as
19follows:
   20479B.17  Damages.
   211.  A pipeline company operating a pipeline or an
22underground storage facility shall have reasonable access to
23the pipeline or underground storage facility for the purpose
24of constructing, operating, maintaining, or locating pipes,
25pumps, pressure apparatus, or other stations, wells, devices,
26or equipment used in or upon the pipeline or underground
27storage facility. A pipeline company shall pay the owner of
28the land for the right of entry and the owner of crops for all
29damages caused by entering, using, or occupying the lands and
30shall pay to the owner all damages caused by the completion
31of construction of the pipeline due to wash or erosion of the
32soil at or along the location of the pipeline and due to the
33settling of the soil along and above the pipeline. However,
34this

   352.  A landowner whose land was affected by the installation
-3-1or construction of a pipeline, and who has elected to be
2covered by crop insurance with the federal crop insurance
3corporation or a private insurer authorized to offer a
4multiperil crop insurance line of authority in this state
5may elect to calculate a claim for damage caused by a crop
6deficiency at the end of each crop year. The claim for damage
7shall be based on the difference between the average yield of
8the crop produced within the easement strip and the average
9yield of the same crop produced on that portion of the parcel
10or parcels of real estate where the easement strip is located,
11but excluding the easement strip. The average yield for parcel
12or parcels of real estate excluding the easement strip shall be
13deemed to be the same as listed in the landowner’s insurance
14policy for that crop year. The landowner may continue to claim
15damage for five crop years after the pipeline has been wholly
16abandoned.
   173.   Thissection does not prevent the execution of an
18agreement between the pipeline company and the owner of the
19land or crops with reference to the use of the land.
20   Sec. 5.  Section 479B.30, subsection 1, Code 2019, is amended
21to read as follows:
   221.  a.  The county board of supervisors shall determine when
23construction of a pipeline or underground storage facility has
24been completed in that county for the purposes of this section.
25Not less than ninety days after the completion of construction
26and if an agreement cannot be made as to damages, a landowner
27whose land was affected by the construction of the pipeline
28or underground storage facility or the pipeline company may
29file with the board of supervisors a petition asking that a
30compensation commission determine the damages arising from
31construction of the pipeline.
   32b.  If the pipeline company files the petition under this
33subsection, the landowner shall receive a notice of the
34request in the same manner provided by the Iowa rules of civil
35procedure for the personal service of original notice. The
-4-1landowner shall be deemed to have accepted any decision by the
2county board of supervisors to approve the petition as provided
3in subsection 2, unless the landowner responds by notifying the
4board of supervisors in writing of an election to preserve the
5landowner’s right to bring a cause of action in district court.
6The landowner must deliver the response to the county board of
7supervisors within sixty days after receiving the notice of the
8petition.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
   12GENERAL. This bill provides for a claim alleging a crop
13deficiency within an easement strip over agricultural land due
14to a pipeline carrying a solid, liquid, or gaseous substance.
15The bill amends the following three Code chapters: Code
16chapter 479 governing intrastate pipelines, Code chapter 479A
17governing interstate pipelines, and Code chapter 479B governing
18hazardous liquid pipelines.
   19DAMAGE BASED ON INSURANCE POLICY. The bill provides that
20under each of the three Code chapters the landowner’s claim for
21damage may be determined by calculating the difference between
22the average yield of the crop produced within the easement and
23the average yield for the same crop produced on the remaining
24part of the agricultural land according to the landowner’s
25insurance policy listing insurable crops for that same crop
26year. The landowner may continue to claim damage for five
27successive years after the pipeline has been abandoned.
   28CLAIM BROUGHT IN DISTRICT COURT. The bill also provides
29that in the case of Code chapter 479 and Code chapter 479B
30a landowner may elect not to utilize a proceeding conducted
31by a compensation commission to determine damages caused by
32the installation of the pipeline. Under current law, either
33the landowner or the pipeline company may petition the board
34of supervisors in the county where the pipeline is located
35to establish such a commission. The bill provides that if
-5-1the landowner receives a notice by a pipeline company that
2it has filed such a petition, the landowner may respond by
3notifying the board of the landowner’s election not to proceed
4by decision of the commission but instead to preserve the
5landowner’s right to bring a cause of action in district court.
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