Central Valley Gas Storage v. Southam CA3
This appeal arises out of a condemnation action in which Fred Southam and Southam & Son (collectively Southam) sought to introduce evidence of the value of their land for an underground natural gas storage project based on reservoir volume. The trial court’s in limine ruling excluded Southam’s valuation approach based on evidence all independently operated gas storage projects in California compensate landowners based on surface acres contributed to the project. Based on surface acre valuation testimony at trial, the jury found Southam is entitled to a minimum rent of $400 per acre per year for 80 acres and an overage rent of 11.82 percent times 4 percent of the annual gross income (AGI) of the 677-acre project.
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