The construction of pipelines in Texas seems to pit two of the state’s values against one another. The Texas economy is heavily dependent on oil and gas. The construction of pipelines to transport those products often results in the seizure of private property through eminent domain. Texans value property rights, and eminent domain is a violation of property rights. How this apparent conflict to be resolved?
The first step is to identify what is more fundamental. Is the construction of pipelines or property rights the more fundamental issue?
The construction of pipelines is an economic activity. But without property rights, economic activities cannot and do not proceed rationally.
The owner of a pipeline expects others to respect his property rights. He owns the pipeline and his right to property protects his freedom to use it as he chooses. Others have no right to interfere with his use of his property. If he wasn’t secure in that right, then he probably wouldn’t build the pipeline.
But property rights also apply to those whose property lie in the path of a proposed pipeline. The owner of land in the path of a proposed pipeline has a moral right to choose how to use and trade his property.
Eminent domain negates freedom of choice. It forces the property owner to sell, regardless of his own desires or judgment. In the context of pipelines, it is a declaration that pipelines are more important than property rights.
Pipelines aren’t more important than property rights. Without property rights, private companies could not build and operate pipelines.
It’s easy to blame pipeline companies for their use of eminent domain. Many times they abuse that power. But the real fault lies with legislators–those who have given private companies that power and have failed to properly define property rights.