Houston pipeline operator Kinder Morgan has sued an Austin suburb over the passage of an ordinance that the company alleges aims to keep a proposed natural gas pipeline out of town, disrupting a project already registered with state regulators.
In a 22-page lawsuit filed on Monday in U.S. District Court in Austin, Kinder Morgan alleges that the City of Kyle overstepped state and federal law when city council members passed a July 2 ordinance regulating the construction of natural gas pipelines within city limits.
Kinder Morgan is seeking to build the $2 billion Permian Highway Pipeline to connect the prolific Permian Basin of West Texas to the Katy natural gas hub near Houston. Spanning 430 miles, the 42-inch diameter pipeline is designed move 2 billion cubic feet of natural gas per day but the proposed route faces stiff opposition in the Texas Hill Country, Hays County and the City of Kyle.
Opponents unsuccessfully tried to stop the project by suing Kinder Morgan in a state district court in Austin. A judge tossed out the lawsuit in a June 25 decision. Days later, the Kyle City Council passed an ordinance stating that all natural gas pipelines with a diameter of 30 inches or more would require a city permit.
Read more from Sergio Chapa with the Houston Chronicle here.