Conway

In this eminent domain action a pipeline corporation has as its only customer its parent company. We hold it may be a public utility as defined in Public Utilities Code section 216. The pipeline corporation thus has the power of eminent domain. (Pub. Util. Code, § 615.)

We also hold that a business need not relocate to qualify for damages due to loss of goodwill under Code of Civil Procedure section 1263.510.

We reverse the judgment granted pursuant to plaintiff pipeline corporation’s motion for summary judgment for further proceedings on the issue of damages.

Facts

Defendants are the owners of the McGrath Home Ranch, which has been in the defendants’ family since the 1870’s. In 1937 the McGrath family entered into an oil and gas lease with Standard Oil. Standard drilled oil wells on the property and constructed a six-inch pipeline. The pipeline was constructed for the purpose of transporting crude oil from the McGrath leases to a shipping point in Ventura.

In 1981 Chevron, the successor to Standard, entered into an agreement with Union Company. The agreement allowed Union to transport oil from offshore wells through the six-inch pipeline to a shipping point in…