Kinder Morgan Files Lawsuit Against City Of Kyle Regarding Pipeline Ordinance

By, Terra Rivers, Managing Editor

On Monday, Kinder Morgan announced the company had filed a lawsuit challenging an ordinance enacted by the City of Kyle.

The ordinance, which was first presented to the Kyle City Council at a special meeting on May 14, will affect both pipeline companies planning to route projects through the city and developers with projects along the pipelines’ routes. The ordinance was approved on the first reading with a 4-0 vote.

During the Kyle City Council’s May 21 meeting, Mayor Travis Mitchell requested the ordinance be postponed to address concerns of the impact on projects near existing pipelines and add clarifying language.

The new rules enacted by the ordinance require oil and gas pipeline companies to apply for additional permits and pay new fees; it also prohibits developers from building certain types of buildings near the pipelines without an exception granted from City Council.

The ordinance was passed with more specific language and a provision that mandates a pipeline company to pay an application fee of $2,500 for a permit and a fee on utility easements equal to 5 percent of construction costs on the section of pipeline.

According to the company’s statement, Kinder Morgan has filed a complaint with the Texas Railroad Commission to appeal “the unsupported and excessive fees” the ordinance will levy 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 said in their statement. “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.”

The company said it is committed to working with the City of Kyle to address the concerns of residents and officials, but the enactment of these ordinances has left them no choice but to take action.

A copy of the ordinance can be read below. No ordinance number was included with the document in the agenda packet. Corridor News is in the process of getting a final and signed copy from the City of Kyle.

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