| Richmond Times-Dispatch Telecom measure closely watched Possible extension of condemnation power concerns landowners BY GREG EDWARDS Feb 27, 2004 |
Landowners in Chesterfield and Dinwiddie counties are closely watching the progress of a
measure in the General Assembly that would give condemnation power to more Virginia
telecommunications companies.
The landowners are concerned that the legislation could interfere with their ongoing right of
way dispute with Level 3 Communications of Virginia LLC. Level 3 is a unit of a Colorado
firm that operates a 16,000-mile nationwide fiber-optic telecommunications network.
Sponsored by Del. Joe T. May, R-Loudoun, the bill is intended to give limited-liability
companies, such as Level 3, the same powers enjoyed by public-service corporations that
hold State Corporation Commission certificates.
May said Level 3 requested the bill, but said he had agreed to sponsor it because state law
hinders limited-liability companies.Yet specific language in the bill is intended to prevent
limited-liability companies from using condemnation powers retroactively, May said.
Chesterfield and Dinwiddie residents fear they will not be adequately compensated for the
value of their land. "I don't wish to do them any harm," May said of the residents in the right
of way dispute with Level 3.
The company had no specific comment on the activity at the General Assembly. "Level 3
continues to conduct good-faith negotiations with affected landowners in order to achieve
reasonable settlements in this case," company spokesman Arthur Hodges said.
The company has built 250 miles of its nationwide network through Virginia, roughly
following Interstate 95. It laid cable along Woodpecker and other roads in Chesterfield and
Dinwiddie counties by relying on a Virginia Department of Transportation permit to work in
road right of way.
During a hearing at the State Corporation Commission last summer, Level 3 said it was
unaware that the state maintained those roads with easements rather than rights of way
and that private property lines ran to the center of the roads. The hearing produced
testimony that Level 3 had done some work outside the road easements and prompted an
apology from the company for the conduct of its cable contractors.
Level 3 had come to the SCC seeking a certificate for a second Virginia subsidiary, which
had been incorporated as a public-service company and could have exercised
condemnation power. Level 3 freely admitted that it needed condemnation power to settle
property disputes with the Woodpecker Road-area landowners.
However, the SCC denied Level 3's request, saying the company had not shown the
"managerial resources, policies and abilities" to make granting a certificate in the public
interest. The commission took the company to task for failing to supervise its contractors,
to identify landowners whose property the company had wrongly crossed and to make
amends for its wrongdoing.
The SCC invited Level 3 to reapply for a certificate when it could show that it could act in the
public interest.
Brenda L. Stewart, of the Woodpecker Road Area Property Rights Association, said Level 3
is trying to get the legislature to give it the retroactive condemnation power that the SCC
has denied.
Stewart said language in May's bill that is intended to protect the rights of property owners
to sue would not prevent the company's use of condemnation. If the bill passes as is, the
company could begin condemnation against individual landowners on July 1, diluting their
power as a group, she contends.
Roughly 200 telecommunications corporations have the power to condemn land in
Virginia. In 1998, the SCC expressed concerns about the proliferation of companies with
condemnation power since deregulation.
May's bill would have the potential of extending condemnation power to roughly 60 more
phone companies and eight power plants. May, however, said he plans further changes to
his bill that would limit its scope to those telecommunications companies that construct
their own facilities.
"That reduces the number substantially," he said.
measure in the General Assembly that would give condemnation power to more Virginia
telecommunications companies.
The landowners are concerned that the legislation could interfere with their ongoing right of
way dispute with Level 3 Communications of Virginia LLC. Level 3 is a unit of a Colorado
firm that operates a 16,000-mile nationwide fiber-optic telecommunications network.
Sponsored by Del. Joe T. May, R-Loudoun, the bill is intended to give limited-liability
companies, such as Level 3, the same powers enjoyed by public-service corporations that
hold State Corporation Commission certificates.
May said Level 3 requested the bill, but said he had agreed to sponsor it because state law
hinders limited-liability companies.Yet specific language in the bill is intended to prevent
limited-liability companies from using condemnation powers retroactively, May said.
Chesterfield and Dinwiddie residents fear they will not be adequately compensated for the
value of their land. "I don't wish to do them any harm," May said of the residents in the right
of way dispute with Level 3.
The company had no specific comment on the activity at the General Assembly. "Level 3
continues to conduct good-faith negotiations with affected landowners in order to achieve
reasonable settlements in this case," company spokesman Arthur Hodges said.
The company has built 250 miles of its nationwide network through Virginia, roughly
following Interstate 95. It laid cable along Woodpecker and other roads in Chesterfield and
Dinwiddie counties by relying on a Virginia Department of Transportation permit to work in
road right of way.
During a hearing at the State Corporation Commission last summer, Level 3 said it was
unaware that the state maintained those roads with easements rather than rights of way
and that private property lines ran to the center of the roads. The hearing produced
testimony that Level 3 had done some work outside the road easements and prompted an
apology from the company for the conduct of its cable contractors.
Level 3 had come to the SCC seeking a certificate for a second Virginia subsidiary, which
had been incorporated as a public-service company and could have exercised
condemnation power. Level 3 freely admitted that it needed condemnation power to settle
property disputes with the Woodpecker Road-area landowners.
However, the SCC denied Level 3's request, saying the company had not shown the
"managerial resources, policies and abilities" to make granting a certificate in the public
interest. The commission took the company to task for failing to supervise its contractors,
to identify landowners whose property the company had wrongly crossed and to make
amends for its wrongdoing.
The SCC invited Level 3 to reapply for a certificate when it could show that it could act in the
public interest.
Brenda L. Stewart, of the Woodpecker Road Area Property Rights Association, said Level 3
is trying to get the legislature to give it the retroactive condemnation power that the SCC
has denied.
Stewart said language in May's bill that is intended to protect the rights of property owners
to sue would not prevent the company's use of condemnation. If the bill passes as is, the
company could begin condemnation against individual landowners on July 1, diluting their
power as a group, she contends.
Roughly 200 telecommunications corporations have the power to condemn land in
Virginia. In 1998, the SCC expressed concerns about the proliferation of companies with
condemnation power since deregulation.
May's bill would have the potential of extending condemnation power to roughly 60 more
phone companies and eight power plants. May, however, said he plans further changes to
his bill that would limit its scope to those telecommunications companies that construct
their own facilities.
"That reduces the number substantially," he said.
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