The meteoric development of the Marcellus Shale is staggering. Since 2004, nearly 7,800 unconventional gas wells have been drilled throughout Pennsylvania. One of the stark realities of this unprecedented growth is that pipeline capacity has not kept pace. There are more active wells than active pipelines. In short, there are not enough pipelines to move the gas downstream to necessary processing centers or distribution points. As such, acreage available for pipeline rights-of-way has become premium.
Pipeline operators can obtain rights-of-way by entering into leases or voluntary agreements with landowners, or by taking properties through eminent domain proceedings. Interstate pipelines are governed by the Natural Gas Act, which gives the Federal Energy Regulatory Commission the power to issue a certificate of public convenience to operators, who may then condemn property through eminent domain.
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