Kinder Morgan is filing a counter lawsuit against an ordinance enacted by the City of Kyle.
The ordinance, which aims to reduce risks of operations and development near transmission pipelines, was approved by city council on July 2. Kinder Morgan said in a statement that the City of Kyle’s ordinance attempts to hinder the construction and interferes with the company’s Permian Highway Pipeline project, which passes through the city.
“Not only is it unconstitutional, but it is also preempted by existing federal and Texas laws and regulations that have effectively governed pipeline projects, like PHP, for decades,” Kinder Morgan said. “Pipelines are already heavily regulated by both state and federal agencies that are dedicated to ensuring the safety of people, wildlife, property and the environment.”
Kyle Mayor Travis Mitchell said Kinder Morgan’s lawsuit was expected.
“We will confer with our legal team in the coming days and decide the best course of action,” Mitchell said in a statement.
Kinder Morgan also filed a complaint with the Texas Railroad Commission to appeal the fees the City of Kyle has put on the project.
“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 stated. “The fees the City of Kyle is attempting to collect are neither. We are confident the Railroad Commission will find them to be unsupported and, thus, invalid.”
Kinder Morgan said it’s committed to working with the city but said Kyle’s ordinance left it with no choice.
“While the ordinance is an attempt to influence us to reroute PHP, we believe this route is a good one that minimizes the potential impacts to the environment and landowners of the state of Texas,” the company said. “We are dedicated to this project, and will continue to engage all stakeholders as we work to complete PHP.”