NuStar to seek eminent domain on two properties

We've had discussions with them. We've reached an impasse and they said they aren't willing to grant us a voluntary easement.”

KC Purgason, NuStar spokesperson

LEE COUNTY - A pipeline company planning to build 14 miles of pipeline in Lee County to transport anhydrous ammonia from the Iowa Fertilizer plant is planning on using eminent domain to secure two parcels of land.

NuStar Pipeline Co. LLC., has secured about 91% of the land they need to build the pipeline extension voluntarily from property owners, but two landowners are digging in their heels.

"We've secured voluntary easements on most of the parcels. But there are currently two landowners who we have not yet been able to secure easments with," said KC Purgason, a senior real estate manager and spokesperson for the pipeline company.

"We've had discussions with them. We've reached an impasse and they said they aren't willing to grant us a voluntary easement."

The county was notified of the eminent domain proceedings because there is county right of way in the parcels of land.

One of the parcels belongs to Margaret Strunk and Coette Gida, 2840 County Rd. 103. The other belongs to Hayes Menke of Mt. Prospect, Illinois and is in the 1700 block of 330th Avenue.

The pipeline will run 13.7 miles to connect to Iowa Fertilizer Co. and all the construction will take place in Lee County, along the north side of the bypass out to the fertilizer plant.

Purgason said NuStar emailed the county to let them know the company's position. But he said NuStar has no plans to condemn any rights of the county, they just were required by Iowa code to notify the county.

"We were required by law to notify the county of the intent to acquire the property via eminent domain if necessary, but we do intend to follow all county processes to build the pipeline," Purgason said.

Supervisor Garry Seyb said he spoke with Lee County Engineer Ben Hull and he said there was no issue from the county's perspective as far as county-owned property.

Seyb asked how many property owners agreed to voluntary easements.

Purgason said 91% of the easements have been acquired voluntarily. The two landowners represent about eight parcels, whereas 81 parcels have been secured.

Supervisor Ron Fedler said the landowners he's spoken with have not had any opposition.

Fedler said he's also heard that the plant is only operating the anhydrous production at about 65% because they can't move it fast enough, and the pipeline will help them increase that production.

OCI Iowa Fertilizer Company produces between 1.7 million and 2.2 million tons of fertilizer products every year, including urea ammonium nitrate, granular urea, and ammonia. The NuStar project is a critical investment in the community's local infrastructure that will help continue to provide farmers in Iowa and across the Midwest with a reliable source of fertilizer in the years to come while supporting the broader ag economy, according to a statement sent to Pen City Current Tuesday from Iowa Fertilizer.

Fedler said the county should authorize Hull to move ahead with county issues so the county isn't holding up the project. The authorization will likely be added to next Monday's agenda.

Anyone can file an objection to the eminent domain, or condemnation, request on the Iowa Utility Board's website under docket HLP-2021-0002.

A hearing has been set for 1 p.m. on Jan. 9, 2023 at the Quality Inn and Suites in Fort Madison on the condemnation requests.