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Report: Kinder Morgan told to pay landowners $2.8M in Permian pipeline dispute

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Report: Kinder Morgan told to pay landowners $2.8M in Permian pipeline dispute

Kinder Morgan Inc. was ordered to pay about $2.8 million to three landowners in Blanco County, Texas, whose land the company wants to seize through eminent domain for its proposed 2.1-Bcf/d Permian Highway natural gas pipeline project, the Houston Chronicle reported Aug. 13.

A three-member panel of the Blanco County Special Commissioners awarded the landowners damages for the loss of value to their properties from the Permian Highway, a 430-mile pipeline designed to transport gas from the Permian Basin to the Gulf Coast, according to the report. Previously, the pipeline giant was told to pay a fourth landowner almost $250,000 in damages, the publication said.

The landowners said the company offered less than $21,000 for portions of their properties, which they said would not compensate them for losses in property value, the report said.

Kinder Morgan said it carefully selected the pipeline route to affect the fewest number of landowners and conducted public meetings before pursuing the project, according to the report. The company, which faces similar challenges elsewhere along the project route, plans to appeal the panel awards in court, the publication added.

The estimated $2 billion Permian Highway project would run from the Waha, Texas, area to the Gulf Coast and Mexico markets. It is scheduled to begin service in late 2020, according to Kinder Morgan's website.

Kinder Morgan Texas Pipeline Inc. is the pipeline operator for the project, while Permian Highway Pipeline LLC is the owner and economic operator.