City of Kyle, an Austin suburb was sued by Kinder Morgan over the passage of an ordinance that the company says aims to keep the proposed $2 billion Permian Highway Pipeline project out of town.
The 430 miles, the 42-inch diameter Permian Highway Pipeline project will connect the fruitful Permian Basin of West Texas to the Katy natural gas hub near Houston and is designed to move 2 billion cubic feet of natural gas per day. The proposed route faces stiff opposition in the Texas Hill Country, Hays County and the City of Kyle.
The Kyle City Council passed an ordinance on July 2nd stating that all natural gas pipelines with a diameter of 30 inches or more would require a city permit. Kinder Morgan, in a 22-page lawsuit filed on Monday in U.S. District Court in Austin, alleges that the City of Kyle overstepped state and federal law.
“While municipalities have the authority to impose certain fees in discrete circumstances under Texas law, those fees must be both reasonably calculated and tied to the actual costs incurred by the city administering valid municipal regulations,” Kinder Morgan said in a statement.
The ordinance states that the pipelines must be buried at least 13 feet below the surface and be located at least 200 feet away from schools, day cares, hospitals, retirement homes and other sensitive facilities.
Kinder Morgan has also filed a complaint with the Railroad Commission and the company says the Permian Highway Pipeline’s route affects the fewest number of landowners and is environmentally sound.