U.S. Supreme Court to hear pipeline company's bid to seize New Jersey land

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The U.S. Supreme Court on Wednesday agreed to hear a bid by a consortium of energy companies seeking to seize land owned by the state of New Jersey to build a $1 billion natural gas pipeline.

The justices agreed to take up an appeal by PennEast Pipeline Company LLC, a joint venture backed by energy companies including Enbridge Inc, of a lower court ruling in favor of New Jersey’s government, which opposed the land seizure.

At issue in the case is a 1938 U.S. law called the Natural Gas Act that allows private energy companies to seize “necessary” parcels of land for a project if they have obtained a certificate from the Federal Energy Regulatory Commission. New Jersey opposed construction of the pipeline and did not consent to PennEast’s seizure of properties the state owns or in which it has an interest.

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