Texas House Bill 2730, explained

Eminent domain is the power of the government or private entities in certain situations to take private property for public projects like roads, schools, or pipelines. The property owner is supposed to get fair payment in return. However, dealing with eminent domain can be stressful and confusing. Can you fight against it? How do you discuss the terms? What payment should you get?

House Bill 2730, passed in 2021, provides more clarity around the rules on eminent domain in Texas. Whether you are dealing with an initial offer or negotiating terms for a pipeline or electric line easement, HB 2730 can help protect your interests and give you the tools to advocate for fair treatment:

Landowner’s rights and good faith negotiations

Entities must genuinely negotiate with property owners before taking their property. The bill requires the initial offer to be in writing and include:

• The landowner’s bill of rights.
• A clear statement about compensation.
• A conveyance document.

They must provide the property owner with a written appraisal before making the final offer. The property owner must receive this final offer at least 30 days after the initial offer and must include just compensation equal to or greater than the appraised value. They should also have at least 14 days to respond to the final offer.

Negotiation of easement terms

The bill sets rules for easements and right-of-way agreements, letting landowners:

• Receive compensation for disruptions.
• Require commercial liability insurance.
• Recover damages for disruptions or the restoration of their property in case of damage.

Property owners can also negotiate terms such as the number of pipelines and equipment allowed on the property, the substances transported through the pipelines, easement assignments and exclusivity and access rights.

Know your rights as a property owner

House Bill 2730 provides necessary safeguards for property owners to receive fair treatment and compensation. Learn more about your rights to better advocate for yourself and your property.