Eight years after two major energy firms created an oil pipeline company to transport crude oil from northwestern Oklahoma to the Cushing hub, the LLC struggled first in a Logan County District Court over its use of eminent domain to acquire the land and second with a state appeals court.
The Oklahoma Court of Civil Appeals recently ruled in the lengthy court battle involving Stack Pipeline LLC and more than a dozen landowners who fought the eminent domain. The Court eventually upheld some of the decisions by Logan County District Court Judge Phillip C. Corley but reversed others and sent the fight back to district court.
STACK pipeline was created in 2016 by Plains All American Pipeline LP and Phillips 66 Partners LP. Under the arrangement, Plains contributed an existing terminal in Cashion with about 200,000 barrels of crude oil storage while Plains contributed the 55-mile STACK Pipeline with a capacity of 100 Mbbl/d.
As part of the joint venture, the firms planned an investment of $15 million to expand the STACK Pipeline by building a truck station at Highway 33, located about 12 miles northwest of the Cashion terminal. The companies also intended to construct a lateral pipeline to connect the Highway 33 station to the Cashion Terminal. At the time of the 2016 announcement of the creation of STACK pipeline, the companies said that expanding the capacity of the Stack Pipeline by looping it from the Cashion Terminal to Cushing was also being pursued.
Oklahoma Appeals Court Sends STACK Pipeline Eminent Domain Case Back to District Court
Judges uphold some rulings, reverse others in long-running land dispute
Eight years after two major energy firms created STACK Pipeline LLC to transport crude oil from northwestern Oklahoma to the Cushing oil hub, the company continues to face legal challenges over its use of eminent domain to acquire land along the pipeline route.
The Oklahoma Court of Civil Appeals recently issued a ruling in a lengthy dispute between STACK Pipeline and more than a dozen landowners who challenged the company’s condemnation efforts. The appellate court affirmed portions of the lower court’s rulings, reversed others, and sent the case back to Logan County District Court for further proceedings.
Pipeline created through joint venture in 2016
STACK Pipeline LLC was formed in 2016 as a joint venture between Plains All American Pipeline and Phillips 66 Partners.
Under the agreement, Plains contributed an existing crude oil terminal in Cashion with approximately 200,000 barrels of storage, while Phillips 66 contributed the 55-mile STACK Pipeline, designed to transport up to 100,000 barrels per day.
The companies also announced plans to invest roughly $15 million to expand the system, including construction of a truck station along Highway 33, about 12 miles northwest of the Cashion terminal, and a lateral pipeline connecting the station to the terminal. At the time, the companies also explored looping the pipeline from Cashion to Cushing to increase capacity.
Landowners challenge use of eminent domain
In 2017, STACK Pipeline filed actions to use eminent domain to secure easements across multiple properties. Landowners pushed back, arguing the company undervalued their land and lacked proper authority.
As the appeals court noted, landowners contended STACK made identical purchase offers to nearly all property owners, which they argued demonstrated bad faith. However, the court rejected that claim.
“Although Landowners made a variety of claims of fraud, dishonesty, and arbitrary action, Landowners fail to meet their burden of proving Stack’s offer was made in bad faith, as the law presumes honesty and fair dealing,” the court wrote, adding that fraud must be proven by clear and convincing evidence.
Trial court rulings spark appeal
The legal fight intensified after Phillip C. Corley issued a series of rulings in Logan County District Court. In 2024, Judge Corley renamed three appraisers involved in the valuation process and later granted partial summary judgment in favor of STACK Pipeline on multiple objections raised by landowners.
The landowners appealed five of the trial court’s orders, covering six major legal exceptions, including whether STACK negotiated in good faith, whether the easements served a public purpose, and whether the company had authority to condemn the land.
Appeals court reverses one issue, affirms the rest
The Court of Civil Appeals found the trial court erred on one specific sub-issue involving whether STACK could acquire a perpetual easement under Oklahoma law. On that narrow point, the appellate court reversed the ruling and remanded it for further review.
However, the court affirmed the trial court’s decisions on all remaining exceptions.
“We find the record contains competent evidence supporting the trial court’s finding that Stack made a bona fide effort to acquire the property from Landowners prior to initiating the Petition for Eminent Domain,” the court ruled.
What happens next
With the ruling, the case returns to Logan County District Court for additional proceedings limited to the specific easement issue identified by the appellate judges. The decision leaves much of the trial court’s earlier rulings intact while reopening a narrow but significant legal question for further review.