H 3303

South Carolina General Assembly
126th Session, 2025-2026
Bill 3303
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING ARTICLE
3 TO CHAPTER 7, TITLE 58 SO AS TO ESTABLISH PROVISIONS RELATING TO PETROLEUM
PIPELINES, TO PROVIDE FOR APPLICATIONS, PERMITTING, AND HEARINGS, TO SET REQUIREMENTS
FOR RENDERING FINAL ORDERS, TO PROVIDE FOR REHEARINGS, TO PROMULGATE
REGULATIONS, TO ALLOW THE OFFICE OF REGULATORY STAFF TO REQUIRE RECORDS
PRODUCTION, TO PROVIDE FOR DISCOVERY, TO EMPLOY EXPERT WITNESSES, TO PROVIDE
THAT A PETROLEUM PIPELINE COMPANY MAY REQUEST REASONABLE ACCESS TO PROPERTY ON
A PROPOSED SITE FOR SURVEY PURPOSES, TO PROVIDE REPORTING REQUIREMENTS FOR A
SPILL OR AN ACCIDENTAL RELEASE, TO PROVIDE FOR EMINENT DOMAIN AND HEARINGS
BEFORE THE ADMINISTRATIVE LAW COURT, AND TO DEFINE NECESSARY TERMS; AND TO
DESIGNATE SECTIONS 58-7-10 THROUGH 58-7-70 AS ARTICLE 1, ENTITLED "SPECIAL
PROVISIONS AFFECTING GAS, WATER, OR PETROLEUM PIPELINE COMPANIES."
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Chapter 7, Title 58 of the S.C. Code is amended by
adding:
Article 3
Petroleum Pipelines
    Section
58-7-300.  As used in this article:
    (1)
"Applicant" means a petroleum pipeline company that has submitted an
application with the commission seeking the issuance of a permit by ORS for the
construction of a new petroleum pipeline or the extension of an existing
petroleum pipeline in this State.
    (2)
"Commission" means the Public Service Commission.
    (3)
"Department" means the Department of Environmental Services.
    (4)
"Easement" means a corridor obtained by a petroleum pipeline company for the
right of use on or under the property of others for the permanent placement and
operation of a petroleum pipeline.
    (5)
"Existing petroleum pipeline" means a petroleum pipeline that a petroleum
pipeline company can affirmatively establish to the commission was constructed
and in use upon the effective date of this act.
    (6)
"Expansion" means a modification to an existing petroleum pipeline within the
existing easement or right of way that increases the supply of petroleum by:
       (a)
increasing the diameter of an existing petroleum pipeline; or
       (b)
constructing a parallel petroleum pipeline.
    "Expansion" does not
include improvements, maintenance, or repairs such as pump station development
or pressure increases on an existing petroleum pipeline.
    (7)
"Extension" means a modification to an existing petroleum pipeline that
increases the length or footprint of the existing petroleum pipeline or right
of way by a distance greater than one linear mile.
    (8)
"Maintenance" means:
       (a)
the care or upkeep of an existing petroleum pipeline and its appurtenances;
       (b)
the replacement of an existing petroleum pipeline within the same easement or
right of way; or
       (c)
the relocation of an existing petroleum pipeline for repair within one third of
one linear mile from the outer limit of the existing petroleum pipeline's
alignment.
    (9)
"New petroleum pipeline" means a petroleum pipeline that was not constructed
and in use upon the effective date of this act. The term "new petroleum
pipeline" shall not include an expansion, an extension, or any maintenance.
    (10)
"ORS" means the Office of Regulatory Staff.
    (11)
"Parallel petroleum pipeline" means a petroleum pipeline that runs side by side
to an existing petroleum pipeline.
    (12)
"Permit" means a permit issued by ORS in compliance with the provisions of an
order of the commission authorizing the construction, expansion, or extension
of a petroleum pipeline.
    (13)
"Petroleum" means crude oil and any product derived from crude oil, including
liquefied petroleum gases, refined petroleum products, or any blend thereof.
    (14)
"Petroleum pipeline" means a fixed conduit of pipe located within South
Carolina that transports petroleum products intrastate or interstate.
    (15)
"Petroleum pipeline company" or "company" means a person, partnership, or
corporation organized under the laws of this State or another state that is
authorized to do business in this State and specifically authorized by its
agreement, charter, or articles of incorporation to construct and operate
petroleum pipelines for the transportation of petroleum or petroleum products.
    (16)
"Right of way" means a temporary easement obtained by a petroleum pipeline
company not to exceed one third of one mile in width for the purpose of
establishing a corridor for the surveying and construction of a petroleum
pipeline.
    Section
58-7-310. Construction of any new petroleum pipeline or the extension or
expansion of an existing petroleum pipeline in this State shall require a
permit issued by ORS in accordance with the terms and conditions set forth in a
final order of the commission as provided in this article. No construction
activity on any portion of a new petroleum pipeline or on the extension or
expansion of an existing petroleum pipeline shall occur unless and until a
permit is issued. The permit shall be in addition to any other permits or
authorization required pursuant to this article or any other provision of state
or federal law. A permit issued by ORS is not required by a company in order
for the company to perform maintenance on an existing petroleum pipeline.
    Section
58-7-320.  (A) An application to the
commission for approval of the issuance of a permit by ORS pursuant to this
article shall contain, at a minimum, the following:
       (1)
a description of the proposed project together with its siting information,
including, but not limited to, a map detailing the proposed route and width of
both the right of way and easement being requested for the new petroleum
pipeline, extension, or expansion;
       (2)
a description of the public convenience and necessity that supports the
proposed route of the new petroleum pipeline, extension, or expansion,
including the extent of public convenience and necessity in South Carolina and
the Southeastern United States;
       (3)
an assessment of historical, archeological, and grave sites conducted along the
proposed route of the new petroleum pipeline, extension, or expansion;
       (4)
information specifying geological and hydrologic features along the proposed
route of the new petroleum pipeline, extension, or expansion;
       (5)
information addressing the presence of threatened or endangered species along
the proposed route of the new petroleum pipeline, extension, or expansion;
       (6)
environmental information described in 40 C.F.R. Sections 1502.12 through
1502.18 as such provisions existed on June 30, 2017;
       (7)
evidence detailing the financial responsibility of the applicant;
       (8)
a proposal, if appropriate, for monitoring the effects of the petroleum
pipeline during construction on the surrounding environment and natural
resources, including, but not limited to, wetland dewatering, sinkhole
inducement, impact on protected plants and animals, pollutant pathways, and
stream siltation;
       (9)
an objective evaluation of the environmental effect of all reasonable
alternatives for siting of the petroleum pipeline and a description of the
means intended to be used to mitigate adverse environmental impacts;
       (10)
a report assessing the economic impact of the proposed petroleum pipeline on
the State of South Carolina;
       (11)
a description of any lands or property over which the proposed route of the
petroleum pipeline crosses that are public lands or lands held in a
conservation easement and, if held in conservation easement, a statement
establishing why the petroleum pipeline must cross the lands and why this is
the most reasonable option;
       (12)
a copy of all permits issued by any federal agency or other South Carolina
entity related to the proposed petroleum pipeline; and
       (13)
any other information that the commission may request or that may be required
by statute or regulation within the review period.
    (B)
Within ten days of filing a petition with the commission seeking the issuance
of a permit, the applicant shall also file with the commission the following:
       (1)
proof of publication of notice in a newspaper or other publication of general
circulation in each county through which the proposed new petroleum pipeline,
expansion, or extension is to be located;
       (2)
evidence of written notice to the governmental bodies and members of the
General Assembly representing each county and municipality through which the
proposed route of the new petroleum pipeline, expansion, or extension is to be
located; and
       (3)
evidence of written notice of the filing of an application pursuant to this
section to all landowners whose property is located within one thousand feet
from the edge of the right of way of the proposed route of the new petroleum
pipeline, expansion, or extension. For the purposes of this subsection,
"landowner" means the landowner of record pursuant to the county property tax
assessor's office as of thirty days before the filing of the application with
the commission. The notice shall be delivered to each landowner and shall
contain the contact number for ORS, its website address, the docket number
assigned by the commission, and the following language in at least twenty-four
point bold font:
    "YOUR PROPERTY IS
LOCATED WITHIN 1,000 FEET OF A PROPOSED PETROLEUM PIPELINE FOR WHICH A PERMIT
APPLICATION HAS BEEN FILED WITH THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA
PURSUANT TO ARTICLE 3, CHAPTER 7, TITLE 58 OF THE SOUTH CAROLINA CODE OF LAWS. THIS
ARTICLE OF LAW PROVIDES SPECIFIC REQUIREMENTS THAT MUST BE FOLLOWED BY THE
PETROLEUM PIPELINE COMPANY BEFORE THEY MAY BUILD A NEW PETROLEUM PIPELINE OR
MODIFY AN EXISTING PETROLEUM PIPELINE. THE PROVISIONS OF THIS ARTICLE PROVIDE
SPECIFIC RIGHTS FOR YOUR PROTECTION AS A LANDOWNER. ADDITIONAL INFORMATION
REGARDING THE PERMIT APPLICATION PROCESS AND HOW YOU MAY EXERCISE YOUR RIGHTS
MAY BE OBTAINED BY CONTACTING THE OFFICE OF REGULATORY STAFF."
    (C) A
copy of the application must be served on ORS, the department, the Department
of Natural Resources, and the Department of Parks, Recreation and Tourism
contemporaneous with the applicant's filing at the commission.
    Section
58-7-330.  (A) Upon receipt of an
application complying with Section 58-7-320, the commission shall promptly fix
a date for the commencement of a hearing before the commission on the merits of
the application, not less than sixty nor more than ninety days after receipt of
the application, and shall conclude the proceedings as expeditiously as
practicable. Testimony presented at the hearing may be presented in writing or
orally, but the commission may make rules or procedures as it deems necessary
to exclude repetitive, redundant, or irrelevant testimony.
    (B)
The commission shall also set public meetings to provide the opportunity to
comment on the proposed petroleum pipeline to members of the public. Any person
may appear as a public witness at any of these public meetings held by the
commission. The commission must hold at least one public meeting to receive
comments per every three counties through which the proposed petroleum pipeline
project may be located, and a meeting must be held in one of the three counties
covered by the meeting. Any meeting held pursuant to this subsection shall
provide information to the public about the proposed project and right of way
with the opportunity for the public to provide testimony and comments to be
included in the commission's record.
    Section
58-7-340.  (A) The parties to a
proceeding at the commission under this article shall include:
       (1)
the applicant;
       (2)
ORS, the department, the Department of Natural Resources, and the Department of
Parks, Recreation and Tourism;
       (3)
each municipality and local government agency entitled to receive service of a
copy of the application pursuant to Section 58-7-320(B) if the municipality or
local government agency has filed a notice of intervention as a party with the
commission within thirty days after the date that it was served with a copy of
the application; and
       (4)
any person entitled to receive service of a copy of the application pursuant to
Section 58-7-320(B); any domestic nonprofit organization that is formed in
whole or in part to promote conservation or natural beauty, to protect the
environment, personal health, or other biological values, to preserve
historical sites, to promote consumer interest, to represent commercial and
industrial groups, or to promote the orderly development of the area where the
facility is to be located; or any other person or organization, if the person
or organization has petitioned the commission for leave to intervene as a party
within thirty days after the date given in the published notice as the date for
filing the application and if the petition has been granted by the commission
for good cause shown.
    (B)
All testimony and comments presented at public hearings and meetings shall be
made a part of the commission's record of proceedings. No person appearing as a
public witness may be a party or have the right to present oral testimony or
argument or cross examine witnesses at the commission's hearing on the merits
of the application.
    (C)
The commission may, in extraordinary circumstances for good cause shown, and
giving consideration to the need for the timely start of construction, grant a
petition for leave to intervene as a party, in order to participate in
subsequent phases of the proceeding, to a municipality, government agency,
person, or organization identified in subsection (A)(3) and (4) that filed a
petition but failed to file a timely notice of intervention or petition for
leave to intervene.
    Section
58-7-350.  (A) The commission shall
render a final written order upon the record either granting or denying the
application as filed, or granting it on the terms, conditions, or modifications
for construction, operation, or maintenance that the commission may deem appropriate.
    (B) In
making a decision as to whether to order the issuance of a permit required by
this article, the commission shall determine whether the portion of the
petroleum pipeline for which the permit is sought is consistent with, and not
an undue hazard to, the public, environment, and natural resources of this
State, after consideration of the following factors:
       (1)
the information contained in the application, including the basis of the need
for the proposed new petroleum pipeline, expansion, or extension;
       (2)
the probable environmental impact of the proposed new petroleum pipeline,
expansion, or extension;
       (3)
the feasibility of possible alternative locations for the proposed new
petroleum pipeline, expansion, or extension;
       (4)
public comment testimony and opinion regarding the suitability of the proposed
location of the new petroleum pipeline, expansion, or extension;
       (5)
whether existing petroleum pipelines are adequate to meet the public need in
South Carolina and other portions of the Southeastern United States;
       (6)
the financial ability of the applicant to furnish adequate service;
       (7)
the economic benefit of the proposed new petroleum pipeline for both the State
of South Carolina and the applicant; and
       (8)
other information that the commission deems reasonable and applicable or that
the commission has by regulation established in order to protect the best
interests of this State, its citizens, and its natural resources.
    (C)
The applicant shall bear the burden of proof, by a preponderance of evidence,
to demonstrate to the commission that it should approve the issuance of a
permit as provided pursuant to this article.
    (D) In
rendering its decision to grant or to deny an application, or in establishing
any terms, conditions, or modification on which a permit may be granted, the
commission may seek the assistance of other state agencies not named as
statutory parties herein and may base its decision in whole or in part on the
expertise, opinions, or recommendations of state agencies that have
jurisdiction under state law via statutes, regulations, or standards
promulgated thereunder on matters affected by the issuance of a petroleum
pipeline permit.
    (E)
Should the commission determine that the location of all or a part of the
proposed petroleum pipeline, expansion, or extension should be modified, it may
condition the issuance of the permit upon the modification, provided that the
municipal and county governmental bodies, members of the General Assembly
representing the newly affected area, and persons residing in the newly
designated and affected area pursuant to Section 58-7-320(B)(3) have been given
reasonable notice of a public hearing at which testimony and comments can be
taken.
    (F)
The commission must determine the amount of insurance that the applicant must
carry for the proposed petroleum pipeline. The minimum amount of insurance that
the applicant must carry is ten million dollars per occurrence in both general
liability and pollution insurance coverages.
    (G)
The commission must issue, and serve on all parties, its final written order
granting or denying the application within one hundred eighty days of the
filing date of the application. However, the commission may extend this
timeline for an additional ninety days for good cause.
    (H) No
order of the commission approving the new construction, expansion, or extension
of a petroleum pipeline may be in force during the pendency of an appeal.
    Section
58-7-360.  (A)(1) A party aggrieved
or adversely affected by an order of the commission pursuant to the provisions
of this article may apply for a rehearing within twenty days of the
commission's order.
       (2)
No right of appeal arising out of an order or decision of the commission
accrues in any court unless an application is made to the commission for a
rehearing within the time specified.
       (3)
The commission must issue a final written order on any petition for rehearing
pursuant to this article within thirty days of a petition being filed.
       (4)
A commission order on reconsideration constitutes the commission's final agency
determination.
    (B) A
final agency determination of the commission order may be reviewed by the South
Carolina Supreme Court upon questions of both law and fact. The commission may
not be a party to the action.
    (C)
Any appeal must be ruled on by the South Carolina Supreme Court within twelve
months of the notice of appeal. This period may be extended by order of the
court for no more than six months for good cause shown.
    Section
58-7-370.  (A) ORS shall not issue a
permit for constructing, expanding, or extending a petroleum pipeline until the
applicant has provided written proof to the department and ORS that the
applicant is insured in an amount of at least ten million dollars in both general
liability and pollution insurance coverages and further proof that the
applicant has posted a bond as determined by the commission in its final order
pursuant to this article to be appropriate to protect property owners and the
public from damages or other harm resulting from acts and omissions both during
and after the completion of the project. In setting the bond, the commission
must consider the amount and scope of insurance coverages available to the
applicant.
    (B)
The applicant must provide proof to the department and ORS by July first of
each year after the permit is issued that the insurance and bond, if any,
required by the commission order is maintained. Failure to provide proof by
July first will result in a fine to be imposed by the department of one
thousand dollars per day until the required proof is submitted. Any fines must
be placed in an account that shall be immediately available for use by the
department or other state agencies for use by the State for reimbursement to
affected private landowners for any costs associated with a spill or accidental
release of liquid petroleum products from a petroleum pipeline permitted
pursuant to this article.
    Section
58-7-380.  (A) The commission shall
initiate the promulgation of regulations necessary for the purposes of
enforcement of this article, which shall include, but are not limited to,
procedures regarding:
       (1)
the submission of a permit application and provisions for the application
submission, review, notice, and hearing process, not to exceed one hundred
eighty days in length, except if an extension is given for up to ninety days
for good cause shown;
       (2)
payment of a nonrefundable application fee in an amount sufficient to defray
the administrative costs of the review of the application and the conduct of a
hearing by the commission;
       (3)
reasonable public notice of the filing of permit applications to any landowner
who, after reasonable efforts, cannot personally be given the notice required
by Section 58-7-320(B);
       (4)
notice and conduct of public hearings to be held prior to any commission order
or action on any permit application; and
       (5)
standards for proof of financial responsibility as required by Section
58-7-320(A)(8).
    (B) No
permit shall be ordered by the commission or issued by ORS before the
commission adopts regulations pursuant to this section.
    (C) At
its discretion, the commission may permit amendments to the permit application.
However, if amendments are permitted, then the public and other interested
parties must have the opportunity to provide comments regarding the amendments.
    Section
58-7-390.  (A) In accomplishing its
responsibilities, ORS may require the production of books, records, and other
information from the applicant that must be submitted by the applicant to ORS
under oath. If the books, records, or other information provided do not appear
to disclose full and accurate information and if the apparent deficiencies are
not cured after reasonable notice, then ORS may require the attendance and
testimony under oath of the officers, accountants, or other agents of the
applicant having knowledge thereof, at such place as ORS may designate. The
expense of making the necessary examination or inspection for procuring
information must be paid by the applicant, to be collected by ORS by suit or
action, if necessary.
    (B)
Nothing in this section restricts ORS's ability to serve discovery in a
contested case proceeding pursuant to this article that seeks documents or
information that ORS has previously obtained in the course of any review,
investigation, inspection, audit, or examination, nor does anything in this
section restrict the ability of any company to object to discovery or to seek
relief regarding discovery, including, without limitation, the entry of a
protective order.
    (C)
ORS may employ, as necessary, an expert witness pursuant to the provisions of
Section 58-4-100 to perform ORS's obligations pursuant to this article.
    Section
58-7-400.  (A)(1) Before the
issuance of a permit pursuant to this article, a company may request reasonable
access to property proposed as the site of a petroleum pipeline for survey
purposes upon notice for access to the landowner. This notice must be in
writing and must provide the following information:
  (a)
the date and approximate time of the survey, provided that it may also include
up to one alternate date and time;
  (b)
a description of the proposed survey activities;
  (c)
a general schedule of the date or dates of the proposed survey activities;
  (d)
a map showing the approximate location of the proposed survey activities;
  (e)
a description of any soil testing or water testing;
  (f)
a description of proposed access to the landowner's property, including
proposed access to cropland, pasture, forest land, orchards, and livestock
enclosures; and
  (g)
a description of proposed measures to prevent property damage and a statement
that the company shall provide reasonable compensation to the landowner for
damage to the property incident to survey activities.
       (2)
The request must be delivered to the landowner of record pursuant to the county
property tax assessor's office at least twenty-one days before the company or
its contractors may access the property. If the company fails to perform the
survey on the date and time provided in its written notice, then the company
must provide a subsequent written notice pursuant to this section before it may
proceed with a survey.
    (B)
After the issuance of a permit pursuant to this article, a company may have
reasonable access to property proposed as the site of a petroleum pipeline so
that the company may conduct a survey of the surface of the property for use in
determining the suitability of the property for placement of the petroleum
pipeline. Before a company may conduct survey activities, written notice must
be delivered to the landowner of record pursuant to the county property tax
assessor's office at least twenty-one days before the company may access the
property. This written notice must be accompanied by a copy of the permit.
After obtaining the permit and after complying with the notice requirement
pursuant to this subsection, a company shall have reasonable access to any
property proposed as the site of a petroleum pipeline for the purpose of
conducting additional surveying as may be necessary for petroleum pipeline
construction.
    (C)
The owner of property or a property interest that is entered by a company for
the purpose of surveying the property, as allowed by this section, or for
access to, maintenance, or relocation of an existing petroleum pipeline has the
right to be compensated for damages to the property incident to the entry. A
survey conducted pursuant to this article must be conducted in a manner that
causes minimal damage to the property surveyed.
    Section
58-7-410.  Each company shall, as soon as possible, report each spill or
accidental release of any petroleum-based product in excess of one hundred
gallons in the State of South Carolina from a petroleum pipeline operating in
this State by telephone or electronic mail to the South Carolina Warning Point.
A first report shall later be supplemented by a full statement provided to ORS
and the department of the location, cause, and details of the spill, as well as
all actions taken by the company to clean up the spill and the precautions, if
any, taken to prevent similar accidents.
    Section
58-7-420.  If a company has met all of the requirements of this article and,
after reasonable, good faith negotiations with the owner of the real property
or interest required for the new construction or extension of a petroleum
pipeline, is unable to acquire the real property or interest, then the company
may acquire the real property or interest by eminent domain for the purpose of
the new construction or extension of a petroleum pipeline by complying with the
provisions of this article.
    Section
58-7-430.  (A) Any company desiring
to use the power of eminent domain to acquire property for the new construction
or extension of a petroleum pipeline shall be required to file an application
with the department showing the details of the project and the public need for
a new petroleum pipeline or extension of the petroleum pipeline which would
justify the company proceeding with eminent domain proceedings pursuant to
Chapter 2, Title 28.
    (B) A
company must receive a permit issued by ORS as ordered by the commission
pursuant to the provisions of this article before it may file an application
with the department.
    (C) A
company is not required to obtain a permit issued by ORS pursuant to the
provisions of this article prior to its use of a right of way, provided that
the company fulfill the notice requirements contained in Section 58-7-400, in
order to:
       (1)
conduct inspections and surveys to determine proposed routes; or
       (2)
investigate the possible environmental impacts and economic feasibility of the
new construction or extension of a petroleum pipeline.
    Section 58-7-440.  (A) Any application pursuant to Section
58-7-430(A) shall contain, at a minimum, the following:
       (1)
a description of the proposed project together with its siting information,
including, but not limited to, a map showing the proposed location of the route
of the new petroleum pipeline or of the proposed extension;
       (2)
a description of the public convenience and necessity that supports the
proposed location of the route of the new petroleum pipeline or of the proposed
extension;
       (3)
the width of the proposed petroleum pipeline corridor, up to a maximum width of
one third of a mile;
       (4)
a showing that the use of the power of eminent domain may be necessary for the
new construction of or proposed extension to a petroleum pipeline;
       (5)
a showing that the public convenience and necessity for the petroleum pipeline
justifies the use of the power of eminent domain;
       (6)
a showing that the company engaged in reasonable, good faith negotiations to
acquire the subject property or properties with the affected property owner or
owners and that those negotiations were not successful;
       (7)
a description of the properties that may have to be obtained through eminent
domain, including the legal status of the properties and whether the properties
are protected public lands or titled in conservation easements, and why
acquisition of protected properties is necessary for the proposed new
construction or extension; and
       (8)
any other information that the department's regulations may require.
    (B)
Within ten business days of its initial filing with the department, the
applicant shall provide:
       (1)
proof of publication of notice in a newspaper or other publication of general
circulation in each county through which the proposed new petroleum pipeline or
extension is to be located;
       (2)
evidence of written notice to the governmental body representing each county
and municipality and to each member of the General Assembly representing each
county and municipality through which the proposed route of the new petroleum
pipeline or the extension is to be located; and
       (3)
evidence of written notice of the filing of an application pursuant to this
section to all landowners whose property is located within the proposed route
of the new petroleum pipeline or extension. For the purposes of this
subsection, "landowner" means the landowner of record pursuant to the county
property tax assessor's office as of thirty days before the filing of an
application pursuant to this section. The notice shall be delivered to each
landowner and shall contain the following language in at least twenty-four
point bold font:
    "YOUR PROPERTY IS
LOCATED WITHIN THE PROPOSED ROUTE OF A PETROLEUM PIPELINE FOR WHICH AN
APPLICATION FOR A PERMIT AND/OR FOR AN ORDER ALLOWING EMINENT DOMAIN HAVE BEEN
FILED PURSUANT TO ARTICLE 3, CHAPTER 7, TITLE 58 OF THE SOUTH CAROLINA CODE OF
LAWS. THIS ARTICLE PROVIDES SPECIFIC REQUIREMENTS THAT MUST BE FOLLOWED BY
PETROLEUM PIPELINE COMPANIES BEFORE THEY MAY BUILD A NEW PETROLEUM PIPELINE,
MODIFY AN EXISTING PETROLEUM PIPELINE, OR ACQUIRE PROPERTY INTERESTS. THE
PROVISIONS OF THIS ARTICLE PROVIDE SPECIFIC RIGHTS FOR YOUR PROTECTION. YOU
SHOULD FAMILIARIZE YOURSELF WITH THOSE REQUIREMENTS AND YOUR RIGHTS."
    Section
58-7-450.  (A) The department must
hold a public meeting or meetings regarding the company's proposed use of
eminent domain. During this meeting, the company shall explain why eminent
domain is necessary, and the public must have the opportunity to comment. Any
person may appear as a public witness at any of these public meetings held by
the department. The department must hold at least one public meeting to receive
comments per every three counties through which the proposed petroleum pipeline
project may be located and in which the applicant seeks the power of eminent
domain. A meeting must be held in one of the three counties covered by the
meeting. Any meeting held pursuant to this subsection shall provide information
to the public about the proposed project and right of way and the request for
eminent domain, with the opportunity for the public to provide testimony and
comments to be included in the record. All information received at this public
hearing must be made part of the department's record.
       (B)(1) In determining if there is a public
need for a new petroleum pipeline or an extension that justifies the use of
eminent domain, the department shall consider:
  (a)
whether existing petroleum pipelines are adequate to meet reasonable public
needs;
  (b)
the volume of demand for petroleum and whether the current demand and the
demand reasonably anticipated in the future can support already existing
petroleum pipelines, if any, and the petroleum pipeline proposed by the
applicant;
  (c)
the financial ability of the company to furnish adequate continuous service and
to meet the financial obligations of the service that the applicant proposes to
perform;
  (d)
the adequacy of the supply of petroleum to serve the public;
  (e)
the economic feasibility of the proposed petroleum pipeline;
  (f)
whether the primary and paramount beneficiary of the proposed petroleum
pipeline is the public in this State or the company;
  (g)
the effect of the proposed petroleum pipeline on existing revenues and service
of other petroleum pipelines, including whether the granting of a permit will
or may seriously impair existing public service in this State and elsewhere;
and
  (h)
information received by ORS from its public hearing or hearings pursuant to
this section.
       (2)
This subsection shall not be construed as exhaustively describing all facts
that the department may consider in its decision to grant or to deny the use of
eminent domain.
       (3)
In determining whether to grant eminent domain authority over land protected by
conservation easements or otherwise protected public land, the department must
determine whether the public need for the new petroleum pipeline or extension
outweighs the conservation interests being protected by the easement or other
public land.
    Section
58-7-460.  (A) Upon review of the information
provided by the applicant and the comments and testimony received at the end of
the public hearing(s), the department shall issue a determination regarding
whether the public need for a new petroleum pipeline or an extension of the
petroleum pipeline justifies the use of eminent domain.
    (B)
Upon determination by the department regarding whether a public need exists for
the new petroleum pipeline or the extension of the petroleum pipeline, the
company or any landowner whose property is proposed to be taken by eminent
domain may request a contested case hearing before the Administrative Law Court
for the review of public need determination and whether that need justifies the
use of eminent domain. The company shall bear the burden of proof to
demonstrate by clear and convincing evidence the need for eminent domain. The
Administrative Law Court may restrict the grant of the power of eminent domain
to protect property protected by conservation easements or other public land.
    (C)(1) The Administrative Law Court's
issuance or denial of a request to use eminent domain may be reviewed by the
South Carolina Supreme Court as provided by statute and the South Carolina
Appellate Court Rules upon questions of both law and fact. The review shall be
by petition filed within thirty days of the order and shall be determined on
the basis of the record before the judge of the Administrative Law Court. The
order shall be affirmed if supported by clear and convincing evidence.
       (2)
Any appeal must be ruled on by the South Carolina Supreme Court within twelve
months of notice of the appeal. This period may be extended by order of the
court for no more than six months for good cause shown.
    (D)(1) The department shall initiate the
promulgation of regulations as are necessary and reasonable for the purposes of
enforcement of this section, which shall include, but may not be limited to:
  (a)
the filing for a request to use eminent domain and provisions for the
application review process, not to exceed one hundred eighty days in length;
  (b)
reasonable public notice of the filing of a request for use of eminent domain
to a landowner who, after reasonable efforts, cannot personally be given the
notice required; and
  (c)
provisions for public meetings to be held prior to any action on any decision.
       (2)
The department shall not make a determination on public need prior to the
promulgation of regulations as provided in this subsection. However, once these
regulations have been promulgated and applications are accepted for filing, an
application must be approved or denied by the department within one hundred
eighty days of the date that the application is filed pursuant to this section.
    Section
58-7-470.  (A) For the purposes of
this subsection, "landowner" means the landowner of record in the county tax
assessor's office whose property may be condemned.
    (B)
Before initiating eminent domain proceedings or threatening to do so, a company
shall cause to be delivered to each landowner a written notice containing the
following language in boldface type:
    "ARTICLE 3, CHAPTER 7, TITLE 58 OF THE SOUTH
CAROLINA CODE OF LAWS PROVIDES SPECIFIC REQUIREMENTS THAT MUST BE FOLLOWED BY
PETROLEUM PIPELINE COMPANIES BEFORE THEY MAY ACQUIRE THE POWER OF EMINENT
DOMAIN FOR A SPECIFIC PROJECT AND BEFORE THEY MAY EXERCISE THE RIGHT TO CONDEMN
YOUR PROPERTY IN ACCORDANCE WITH THE EMINENT DOMAIN PROCESSES AND PROCEDURES IN
CHAPTER 2, TITLE 28 OF THE SOUTH CAROLINA CODE OF LAWS. THESE PROVISIONS ALSO
PROVIDE SPECIFIC RIGHTS FOR YOUR PROTECTION. YOU SHOULD FAMILIARIZE YOURSELF
WITH THESE REQUIREMENTS AND YOUR RIGHTS PRIOR TO CONTINUING NEGOTIATIONS
CONCERNING THE SALE OF YOUR PROPERTY TO A PETROLEUM PIPELINE COMPANY."
    Section
58-7-480.  (A) If the easement or
other property interest, or any portion of it, condemned by a company under the
power of eminent domain pursuant to the provisions of this article and Chapter
2, Title 28 is not used for the purpose for which it was condemned within a
four year period from the date that it was condemned, then the former owner, or
his successor in interest, has the right to repurchase the property from the
company, or its successor in interest, for the amount paid to the former owner
by the company at the time of the condemnation.
    (B)
Unless the former owner, or his successor in interest, exercises his right to
repurchase this property within a period of one year from the expiration of the
four year period as provided in subsection (A), the right to repurchase ceases
when the company gives the former owner, or his successor in interest, one
hundred eighty days' written notice by certified mail that the right pursuant
to subsection (A) will expire at the end of the ninety-day period.
SECTION 2.  (A)
On or after the effective date of this act, construction of any new petroleum
pipeline or the extension or expansion of an existing petroleum pipeline in
this State shall require a permit issued by the Office of Regulatory Staff
pursuant to Section 58-7-310, as added by this act.
    (B) No later than
ninety days after the effective date of this act, the Public Service Commission
shall initiate the promulgation of regulations pursuant to Section 58-7-380, as
added by this act.
    (C) On or after
the effective date of this act, any petroleum pipeline company desiring to use
the power of eminent domain to acquire property for certain purposes shall be
required to obtain a determination from the department pursuant to Section
58-7-430(A), as added by this act.
    (D)  No later than
ninety days after the effective date of this act, the department shall initiate
the promulgation of regulations pursuant to Section 58-7-460(D).
SECTION 3.  Sections
58-7-10 through 58-7-70 of the S.C. Code are designated as Article 1, Chapter
7, Title 58 entitled, "Special Provisions Affecting Gas, Water, or Petroleum
Pipeline Companies."
SECTION 4.  This act takes effect upon approval
by the Governor.
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This web page was last updated on December 06, 2024 at 11:18 AM