Kinder Morgan suspends work on Palmetto Pipeline


Kinder Morgan announced this week that they are suspending work on the proposed $1 billion Palmetto Pipeline project citing the unfavorable action by the Georgia legislature regarding eminent domain authority and permitting restrictions for petroleum pipelines.

A statement on their website said, “While this legislative action was disappointing, we remain committed to providing customized transportation solutions to our customers.”

The Georia House and Senate recently passed a bill that imposes a one year moratorium on any permist for new pipelines and creaetes a study committee to look at the use of eminent domain for such project. The bill has been sent to Georgia Gov. Nathan Deal who can sign the bill, veto it or not sign it and let it become law in 40 days.

Deal supported a ruling by a state regulator denying Kinder Morgan eminent domain powers for the project.

The pipeline company planed to expand its Belton tank farm and run a new pipeline from Belton to Jacksonville. The project needed more than 200 miles of easements or rights of way across Georgia and approximately another 100 miles of easements in South Carolina.