Earlier this year, a local group agreed to a community benefits package with pipeline company Tallgrass to build a transmission system designed to carry captured carbon dioxide emissions across Nebraska
Jane Kleeb, Nebraska Democratic Party chairwoman and founder of BOLD Alliance. Earlier this year, BOLD agreed to a community benefits package with Tallgrass, a Leawood, Kan.-based pipeline company.Perhaps it was at the strategy sessions where environmental groups marshalled their resources against the project, intended to deliver Canadian crude to the U.S. Gulf Coast.
Under the agreement, Tallgrass committed to paying 10 years of royalties to individual landowners – an unusual direct benefit that grows as volumes increase – in addition to royalties for a community foundation and cash to local communities. Another US$500,000 will go to non-profits in affected counties, in addition to US$600,000 to train and equip first responders.
Kyle Quackenbush, a senior executive with Tallgrass, called it an unprecedented agreement that was the result of a corporate willingness to work alongside local groups. Although Tallgrass did not renounce forcible land expropriation through eminent domain the company believes it can complete its project “without needing to use that as an incentive,” Mr. Quackenbush said.
Beyond financial numbers, the agreement stipulates how the company will interact with landowners, such as setting a defined length of time for negotiations and periods of prior notice for survey work. Tallgrass argues that it may, in the end, be cheaper to offer more generous benefits than to fight in court.
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