NEW YORK COURT DECIDES UTILITY COMPANY ENTITLED TO BE REIMBURSED FOR EXPENSES INCURRED IN PROTECTING ITS PIPELINE FROM PRESSURE OF NEW ROAD

A GAS PIPELINE COMPANY HAD LAID PART OF ITS LINE UNDER LAND ON WHICH IT HAD AN EASEMENT. SUBSEQUENTLY, THE COUNTY OF ALBANY PURCHASED THE FEE OF THE LAND, SUBJECT TO THE COMPANY'S EASEMENT, AND CONSTRUCTED A HIGHWAY ON THE LAND. AT THE REQUEST OF THE COUNTY, THE COMPANY ENCASED ITS PIPELINE AT THE POINT WHERE IT PASSED UNDER THE HIGHWAY TO PROTECT IT FROM THE PRESSURE OF THE NEW HIGHWAY. THE COMPANY BROUGHT ACTION TO BE REIMBURSED FOR THE EXPENSES. A SUPREME COURT NOTED THAT THE ISSUE OF WHO PAID SUCH EXPENSES WAS OF FIRST IMPRESSION IN THE STATE OF NEW YORK. IT FURTHER NOTED THAT THE POLICE POWER CONCEPT HAD BEEN SPECIFICALLY REJECTED IN SIMILAR CASES AND THAT IN A MAJORITY OF JURISDICTIONS, DEALING WITH SIMILAR CASES, IT HAD BEEN HELD THAT A UTILITY COMPANY WAS ENTITLED TO REIMBURSEMENT BECAUSE THE COMPANY'S EASEMENT WAS PROPERTY IN THE CONSTITUTIONAL SENSE AND THAT THE OWNER WAS ENTITLED TO COMPENSATION IF IT WAS TAKEN OR INJURED. THE COURT FOLLOWED THIS RULE AND ORDERED THE COUNTY TO PAY THE COSTS. (NEW YORK STATE NATURAL GAS CORP. V. COUNTY OF ALBANY, 262 N.Y.S.2D 661, AUG 1965)

  • Supplemental Notes:
    • No 32, pp 2-3
  • Publication Date: 1966-7

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  • Accession Number: 00238594
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Feb 10 1994 12:00AM