The head of Roads and Transport Peter Todd said Gunns may be allowed to use the land, if its pipeline does not interfere with the bypass.
“We can only compulsorily acquire the land for road purposes and that’s what we’ve done,” he said.
Mr Todd said there has been no special planning to accommodate the pipeline.
The Greens leader Nick McKim is not convinced and said the Premier’s promise to end support for the pulp mill has become laughable.
“His Government may well have acted illegally in compulsorily acquiring private land for private purpose,” Mr McKim said.
The Premier said he is not aware of the issue.
“So I’m not going to be commenting on a story that is speculative,” he said.
Mr Bartlett said it is Government policy not to acquire land for Gunns pulp mill