Supreme Court Will Hear Pipeline Eminent Domain Compensation Case

The Supreme Court will consider how to calculate just compensation for pipeline takings under the Natural Gas Act.

The Supreme Court will hear oral arguments on November 9, 2026 in Hoffmann v. WBI Energy Transmission, Inc., a case centrally concerned with the standard for just compensation in eminent domain takings under the Natural Gas Act. This federal statute permits private pipeline companies to acquire land through eminent domain for interstate pipeline construction but does not explicitly specify how just compensation should be calculated.

At issue is whether courts should apply the federal constitutional standard outlined by the Fifth Amendment, which the Eighth Circuit Court applied in this case, or if compensation determinations should incorporate relevant state law provisions that might provide for greater compensation, including potentially attorney’s fees.

The Eighth Circuit ruled that the federal standard applies, excluding attorney's fees, setting a precedent that limits compensation to the constitutional minimum rather than potentially more generous state approaches. The Supreme Court’s forthcoming ruling will confirm whether this federal standard governs or if states can apply their own enhanced compensation frameworks.

This decision carries broad implications for landowners nationwide and energy companies alike, as it will either maintain a uniform federal standard or open the door for varied compensation practices depending on state law. Legal experts and stakeholders are closely watching the case given its impact on property rights and valuation methods in eminent domain proceedings involving pipelines.

As commentators note, "The Court will decide what method courts should use to determine 'just compensation' when private pipeline companies condemn land under the Natural Gas Act."