By: Davis S.B. No. 2433 A BILL TO BE ENTITLED AN ACT relating to condemnation of municipal property for and municipal regulation of pipeline operations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 2206, Government Code, is amended by adding Section 2206.003 to read as follows: Sec. 2206.003. FORMAL NEGOTIATION PROCEDURES REQUIRED IN CERTAIN CIRCUMSTANCES. (a) A pipeline operator with eminent domain authority that wants to acquire an easement for a public use on real property owned by a municipality shall provide notice to the municipality of the proposed placement of the pipeline and allow time for the municipality to take action under Subsection (b) before filing a condemnation petition under Chapter 21, Property Code. (b) Not later than the 60th day after the date the pipeline operator notifies the municipality under Subsection (a), the municipality shall: (1) consent to the pipeline placement; or (2) suggest a feasible alternative placement for the pipeline based on the municipality's consideration of: (A) the municipality's comprehensive plan; (B) corridor development and planning for the area; (C) transit development and planning for the area; and (D) economic development and planning for the area. (c) A municipality's proposal under Subsection (b)(2) must not unreasonably prevent a pipeline operator from accomplishing the purpose for which the pipeline operator seeks to acquire the property. (d) If a pipeline operator and a municipality are unable to agree on the placement of a pipeline on real property owned by the municipality, the pipeline operator may file a condemnation petition under Chapter 21, Property Code. A municipality that has proposed an alternative placement for the pipeline under Subsection (b) may move that the court determine whether that proposed placement is more reasonable than the placement proposed by the pipeline operator. If the court determines the municipality's proposal is more reasonable than the pipeline operator's proposal, the court shall condition the pipeline operator's acquisition of the property interest on the implementation of the municipality's proposed placement. SECTION 2. Chapter 229, Local Government Code, is amended by adding Section 229.003 to read as follows: Sec. 229.003. REGULATION OF CERTAIN PIPELINE ACTIVITIES. A municipality by ordinance may regulate the placement, inspections, construction materials, and maintenance of gas pipelines used as gathering lines, pumps, compressors, separators, dehydration units, and tank batteries within the municipality's corporate boundaries. SECTION 3. This Act takes effect September 1, 2009.