Kinder Morgan sues city of Kyle over pipeline-related development ordinance

Kinder Morgan's preliminary map of the planned pipeline route was released before negotiations with landowners were completed.

Kinder Morgan's preliminary map of the planned pipeline route was released before negotiations with landowners were completed.

Pipeline giant Kinder Morgan has sued the city of Kyle, striking back at the city in the latest of a series of legal actions over the Permian Highway Pipeline.

The suit, filed July 22 in U.S. District Court in Austin, charges Kyle with overstepping its authority when the City Council approved a new set of rules that places additional restrictions on—and requires additional steps of—pipeline companies working on projects within the city as well as developers building near those pipelines.

“I’m not going to far as to say we expected it,” Kyle Mayor Travis Mitchell told Community Impact Newspaper. “But it’s not unexpected."

Mitchell added that the city would confer with its legal team in the coming days and decide the best course of action.

Kyle’s ordinance, which originally appeared in May before being passed on second reading July 2, cites the city’s obligation “to protect the public health, safety, and welfare.” In addition to requiring pipeline companies to pay additional fees and obtain additional permits, the ordinance prohibits certain types of buildings near pipelines.

Kinder Morgan’s suit against Kyle, which asks for both a preliminary and a permanent injunction, argues that the city does not have the power to regulate oil and gas pipelines because it is preempted by both state and federal law.

“In addition to occupying the field, the [federal Pipeline Safety Act] also expressly preempts municipal regulation of pipeline safety in Texas,” the suit states, later adding, “[t]o add further clarity, the Texas Legislature provided that cities and counties do not have the power to regulate the safety of gas utilities and gas pipeline facilities.”

The suit was filed just a week after the Texas Real Estate Advocacy and Defense, or TREAD, Coalition, said it would appeal the dismissal of a lawsuit in which both Kyle and Hays County were plaintiffs.

That challenge, which was filed originally on April 22 before being dismissed June 25, is mentioned several times in the suit brought by Kinder Morgan, which calls the ordinance the “defendant’s second attempt to impermissibly interfere with the construction and operation of the Permian Highway Pipeline.”

In a lengthy statement, Kinder Morgan said that in addition to challenging the Kyle ordinance in court, the company has also filed a complaint with the Texas Railroad Commission over the fees that it imposes.

"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," the statement reads. "We are confident the Railroad Commission will find them to be unsupported and, thus, invalid."

The TREAD Coalition also announced July 16 that, with Hays County as one of the plaintiffs, it had filed a letter of intent to sue several federal agencies and Kinder Morgan over the potential impact of the pipeline on the environment and on the endangered golden-cheeked warbler.

Members of the TREAD Coalition are funding both lawsuits.

According to court documents, a hearing on Kinder Morgan’s lawsuit has been scheduled for Sept. 17.

This article has been updated with additional information.
By Katharine Jose

Katharine Jose has written about politics, infrastructure, environment, development, natural disasters and other subjects for The New York Observer, Capital New York, and The New York Times, among other publications. She was an editor for several publicat


In 2019, Roxanne's House served 574 victims of child abuse. (Courtesy HomeAid Austin)
Child advocacy center celebrates completion of facility renovations

The renovation included building an additional 300 square feet of office space, which will allow space for three additional staff members.

Construction for the San Marcos River Shared Use Pathway Project started on Feb. 17. (Anna Herod/Community Impact Newspaper)
New San Marcos trail project will create opportunity for nonmotorized transportation

The trail will be located around Children’s Park, Rio Vista Park and Ramon Lucio Park.

The board approved a six-proposition bond Feb. 6. (Community Impact Newspaper)
Three Hays CISD board of trustee elections in May are uncontested

Two current trustees are running for reelection.

Buda's transportation infrastructure is being updated to accommodate a growing population. (Evelin Garcia/Community Impact Newspaper)
Buda to hold open house Feb. 20 on future transportation and mobility master plan

The mobility and master plan plan will identify needs, solutions and improvements to accommodate the city’s rapid growth.

The U.S. Centers for Disease Control and Prevention confirmed the first case of COVID-19 in San Antonio on Feb. 13. The case is the 15th known COVID-19, commonly referred to in recent weeks as coronavirus, infection in the United States so far. (Courtesy Adobe stock photos)
The first coronavirus case in Texas was just confirmed. Here is what Austinites need to know about the virus

The U.S. Centers for Disease Control and Prevention confirmed the first case of COVID-19 in San Antonio this morning, according to a news release from the federal agency.

Hill Country Theatre joins Inspired Minds Arts Center at 121 Main St., Buda. (Evelin Garcia/Community Impact Newspaper)
Hill Country Theatre will begin performances in downtown Buda on Feb. 14

Oscar Wilde's "The Importance of Being Earnest" is the first Buda play for the nonprofit.

The restaurant will be located at The Lyndon, apartment complex, 200 Springtown Way, Ste. 138, San Marcos.(Courtesy Xian Sushi and Noodle)
Xian Sushi and Noodle to open in San Marcos in early May

The Austin-base restaurant will serve home-made noodles that can be customized to any preference and sushi.

Jason Pence was fired by the city Jan. 27 following allegations that he had engaged in improper practices as construction manager. (Community Impact Newspaper staff)
BREAKING NEWS: Texas Rangers find former San Marcos construction manager used city funds, labor for personal projects

The former city employee was arrested Feb. 11 on charges of theft by a public servant.

Jason Pence was arrested Feb. 11. (Courtesy Comal County)
Texas Rangers arrest recently fired San Marcos construction manager

The arrest follows a criminal investigation sparked by allegations that the employee engaged in improper purchasing practices.

(Community Impact Newspaper)
Gymnastics center set to open in Kyle expands, changes name

Instead of 3,000 square feet, Waves Gymnastics will open with 6,000 square feet of space.

(Evelin Garcia/Community Impact Newspaper)
Buda aims reuse of city buildings toward the arts, culture and tourism

“This town has always been an artist's town,” Inspired Minds co-owner Sinéad Whiteside said.

A public meeting for community input will be held on Feb. 19 at 6:00 p.m. at the San Marcos Activity Center. (Community Impact Newspaper Staff)
City of San Marcos asks for input on allocation of federal funds

In addition to a public meeting on Feb. 19, there will also be a survey available online and on paper, in both English and Spanish, through Feb. 23.

Back to top