The Permian Pipeline: Your Rights as a Texas Hill Country Landowner

Called the Permian Highway Pipeline, this $2 billion dollar Kinder Morgan project is set to break ground late in 2019 and to be fully operational in 2020 to transport natural gas from West Texas to the Gulf Coast. Kinder Morgan plans to use eminent domain to cut through 1,070 parcels across 16 counties, which has become a significant source of stress and frustration for many Hill Country landowners.

 

As many of us in the office are land and property owners ourselves, we understand this frustration! We believe that landowners should be equipped with as much knowledge as possible to know how to proceed if Kinder Morgan contacts you. Knowing your rights, understanding the eminent domain process and having access to resources to inform your decision-making can help you operate from a position of power rather than with a disadvantage.

 

 

The pipeline will stretch 430 miles and will go through Gillespie county, where the largest number of landowners live who could be affected by it. It would include a purchase from landowners of a 50-foot easement, plus an additional 25-50 feet of easements that would preclude certain activities like building or planting trees. The pipeline would rest at a minimum of three feet beneath the surface, and approximately 30 feet beneath riverbeds.

 

The pipeline will stretch 430 miles and will go through Gillespie county, where the largest number of landowners live who could be affected by it. It would include a purchase from landowners of a 50-foot easement, plus an additional 25-50 feet of easements that would preclude certain activities like building or planting trees. The pipeline would rest at a minimum of three feet beneath the surface, and approximately 30 feet beneath riverbeds.

 

• The Hill Country is one of the few parts of Texas that have never really been touched by the oil industry. As such, the following counties and communities have filed a lawsuit or resolutions to stop construction: Buda, Kyle, San Marcos, Wimberley, Woodcreek, Hays County, Gillespie County, Hays Trinity Groundwater Conservation District, and the Hill Country Underground Water Conservation District. 
• The routing itself is determined by the owner of the pipeline (Kinder Morgan out of Houston), and the Texas Railroad Commission, the U.S. Fish and Wildlife Service and the U.S. Army Corps of Engineers are in charge of its regulation. 
• Approximately 800 landowners will be affected across 16 counties, including Kimble, Blanco, Hays, and Gillespie.
• Pipelines are registered by the Texas Railroad Commission as ‘common carriers,’ which allows them to take control of private property through eminent domain as long as they fairly compensate the owners. Pipeline owners are required to negotiate with landowners before resorting to eminent domain. This process is delegated by the state of Texas.

 

If you are contacted by Kinder Morgan, it is important to know that pipeline easements are permanent, so you have one chance to get the best possible easement terms and the highest amount of compensation possible for your property. If you are unable to reach an agreement with the company, you could be forced to cede property through eminent domain. Read on to find out what your rights are as a landowner.

 

 

The Landowner’s Bill of Rights applies to any situation where the government or a private entity, like Kinder Morgan, attempts to take your property. The rights outlined below are confirmed by the Texas Legislature, and have been summarized from the formal Bill. 

 

• You are entitled to adequate compensation if your land is taken for a public use, and the only reason your property can be taken is for public use. 
• Your property can only be taken by a governmental entity or a private entity that has been authorized to do so by law. 
• The entity, whether government or private, that wants to take your property must notify you that it wants to take your property and provide you with a written appraisal from a certified appraiser outlining the compensation you are owed (Kinder Morgan must contact you formally.)
• They must make a good faith offer to buy the property before it files a lawsuit to condemn the property that conforms with Chapter 21 of the Texas Property Code. 
• You have the right to hire an appraiser or other professional to determine the value of your property or to assist you in any condemnation proceeding, such as hiring an attorney to negotiate with the entity and to represent you in any legal proceedings. 
• You are entitled to a hearing before a court appointed panel that includes three special commissioners before your property is taken. The special commissioners determine the amount of compensation the entity owes you for the taking of your property and what compensation, if any, you are entitled to for any reduction in value of your property. 
• If you are not satisfied with the compensation awarded by the commissioners, or if you question whether the taking of your property was valid, you have the right to a trial by a judge or jury.

 

Our recommendation at Fredericksburg Realty is to seek out the professional advice of an attorney who specializes in eminent domain cases. Many attorneys are encouraging impacted landowners to talk with their neighbors, share information and negotiate together to best position themselves for negotiations that go in your favor. In addition, researching information about the cultural and natural resources on your land that could be impacted by the pipeline route can go a long way in fighting for fair compensation in easement negotiations. 

 

To see how the pipeline will affect your property, view this interactive map provided by Braun and Gresham.

For information on a successful easement negotiation, see this Texas Pipeline Easement Negotiation Checklist.