The North Dakota government is forcing producers to pick between two poisons: Accept below-market offers for property or drown in legal costs.
According to Farm Journal, Leonard Hoffmann was offered roughly half the market rate for gas pipeline access across his pastureland, backed by the threat of eminent domain. He spent hundreds of thousands of dollars in court to contest the offer, but despite winning, Hoffmann received a financial hammer blow: pay all legal costs. In a staggering ruling, the U.S. Court of Appeals for the Eighth Circuit declared Hoffmann must foot the bill to challenge below-market land offers—even though he won on the issue related to the use of other pipeline easement transactions as comparable sales. He proved his case that he is entitled to recover fees, but according to the Eighth Circuit, if a landowner dares to challenge a government-backed gas giant, the landowner loses either at the get-go or the finish line. Huffmann, is taking his case directly to the Supreme Court of the United States, represented by the Institute for Justice.
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