Opinion ID: 1698690
Heading Depth: 1
Heading Rank: 3

Heading: Exxon Pipeline v. V. Price LeBlanc, et al.

Text: In May 1997, the LeBlancs purchased approximately 418 acres of undeveloped land in Iberville Parish for $1,000 per acre. Approximately six acres of the land purchased are located on the western side of Highway 30; the remaining approximate 412 acre tract is east of the highway. [3] On March 11, 1998, Exxon filed a petition for expropriation averring entitlement to temporary and permanent servitudes for the construction and installation of three pipelines on the LeBlancs property. The LeBlancs filed an answer, challenging the need and necessity of the expropriation, the route selection, as well as the size of the parcels of land upon which the servitude was proposed to be situated. In the alternative, the LeBlancs claimed entitlement to the fair market value of the property taken and severance damages for the reduction of the fair market value of the remainder of their land. The permanent servitude which Exxon seeks encumbers two separate parcels of land within the 412-acre tract of land. The eastern-most parcel (Tract 1) is approximately 22.83 feet wide by 290 feet in length; the westerly tract (Tract 2) is 30 feet wide (at the widest part) by approximately 600 feet long. Both parcels are subject to numerous existing servitudes which allow the respective servitude owners to install inter alia power lines, pipelines and a fiber optic cable as set forth in their respective servitude agreements. Tract 1 is entirely encumbered by preexisting servitude agreements, while all but.285 of the 412 acres which comprise Tract 2 are encumbered. [4] On October 30, 1998, the trial court signed a judgment and concluded that Exxon was a common carrier of petroleum products with the power to expropriate, and awarded $125,904.14 as just compensation to the LeBlancs. Exxon appealed the trial court's decision and the Court of Appeal, First Circuit, affirmed the lower courts' rulings. Exxon Pipeline Co. v. LeBlanc, 99-1437 (La.App. 1 Cir. 6/23/00) 763 So.2d 128. The court agreed with the trial court that the land-owners' expert, Russell, was reliable and that the highest and best use for the subject property was as a pipeline corridor. The court noted that there were differing highest and best, depending on the tract of land. Recognizing the differing highest and best uses of the land, the court nonetheless concluded that the highest and best use of the land which the permanent servitude was to be placed was properly designated as a pipeline corridor. The court also rejected Exxon's argument that the trial court used an inappropriate method, rod measurements, to determine compensation. It concluded, based on the highest and best use, that the strip of land at issue as a pipeline/utility corridor is measured in the pipeline industry by rod rather than by acre, as supported by the trial testimony. Thus, the court found all the evidence relative to measurement and valuation supported the appraisal technique offered by the landowners' expert. Exxon filed two separate applications in this court seeking review of the lower court's opinions. We granted certiorari and consolidated the matters for oral argument. Exxon Pipeline Co. v. Hill, 00-2535 (La.11/27/00), 774 So.2d 986; Exxon Pipeline Co. v. LeBlanc, 00-2559 (La.11/27/00), 775 So.2d 448.