House advances bill to expand landowner damage claims from pipeline construction

STATEWIDE — A House subcommittee has advanced a bill that would allow landowners to renegotiate damage claims and file complaints with the Iowa Utilities Commission or in court for damages and crop yield losses tied to pipeline construction.
Rep. David Young (R, Van Meter), who sponsored the measure, said it is based on “the premise of you want to leave what you found … in the same condition if not better.”
Young said House Study Bill 691 is not aimed at any specific pipeline but would create “predictability” and “consistency” in standards protecting landowners.
The proposal drew support from several agricultural commodity organizations, including the Iowa Corn Growers Association, Iowa Cattlemen’s Association, Iowa Soybean Association and the Iowa Farm Bureau Federation. Summit Carbon Solutions,  which is pursuing a carbon sequestration pipeline project in Iowa, and the Iowa Renewable Fuels Association also registered in favor.
Doug Struyk, representing the Iowa Soybean Association at the meeting, said some members are still experiencing yield losses from pipelines constructed nearly a decade ago.
“We believe provisions in the bill provide a floor for landowners so that they have some baseline protections to negotiate from,” Struyk said.
The bill would allow landowners to reopen compensation claims with pipeline companies even if damage was apparent at the time of settlement or more than five years have passed since an agreement was reached.
It would also permit landowners, not just county supervisors, to file complaints directly with the Iowa Utilities Commission and pursue claims in small claims or district court for “violations of damage payment provisions” by a pipeline company.
Onnalee Gettler, a lobbyist for MidAmerican Energy Company, opposed the bill but proposed an amendment lawmakers said could “avoid unintended” legal consequences.
Gettler said allowing renegotiation beyond five years could enable claims to be reopened “in perpetuity,” and the company wants that language revised. The amendment would also clarify relationships between landowners and farm tenants so pipeline companies would not have to compensate both parties for the same parcel.
She said the utility would support the bill if the amendment is adopted.
Rep. Charley Thomson, (R, Charles City), who chaired the subcommittee, said he plans to take a “closer look” at the concerns raised by MidAmerican.
The Iowa Utility Association, American Petroleum Institute and Black Hills Energy also registered opposition but did not speak at the hearing.
Kevin Kuhle, speaking for the Iowa Farm Bureau Federation, said the language aligns with Farm Bureau policies adopted in 2022.
“It may be stated that this bill is not necessary because pipeline companies are already doing these things in private negotiations, but there are examples out there in the state where those agreements have not been enough to protect those farmers,” Kuhle said.
The bill would allow compensation for losses such as reduced crop yields, soil compaction, damage to irrigation systems and harm to soil or water conservation structures.
“This Iowa code should provide better protection for those farmers, giving them a chance to recoup those continued yield losses and protect their conservation structures when pipelines are being built,” Kuhle said.
Lawmakers noted similar proposals have surfaced before, including a 2023 House-passed bill limiting eminent domain for pipelines.
“It’s about time we tied this up and put this into code,” Young said.
The measure now moves to the House Commerce Committee.