Badger Pipe Line Company - Page 3

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          practicable for petitioner to purchase the property that its                
          pipeline must traverse, petitioner often will purchase an                   
          easement, or right-of-way, granting it the right to locate its              
          pipeline on particular parcels of private or public property.  In           
          some instances, however, petitioner is unable to purchase a                 
          right-of-way because that right previously has been conveyed to             
          another easement holder, such as when the State holds the right-            
          of-way in property that borders a highway.  Under such                      
          circumstances, petitioner may acquire a permit which allows it to           
          locate its pipeline within the existing right-of-way.  As a                 
          matter of contract, however, such a permit often provides that if           
          petitioner's pipeline ever interferes with the right-of-way                 
          holder's future use of the right-of-way, petitioner is                      
          responsible for the cost of relocating the pipeline in order to             
          cure any such interference.  This method of securing a location             
          for the placement of pipeline represents a common, ordinary, and            
          necessary practice throughout the pipeline industry.                        
               At some point prior to 1991, petitioner entered into a                 
          contractual agreement with the Illinois Department of Public                
          Works and Buildings, Division of Highways, predecessor to                   
          Illinois Department of Transportation (both hereinafter referred            
          to as IDOT), whereby petitioner secured a permit to locate its              
          pipeline within an IDOT right-of-way that bordered certain                  
          Illinois highways.  Pursuant to that permit, petitioner was and             

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Last modified: May 25, 2011