« Ind. Decisions - More on: Terre Haute paper loses $1.5 million defamation suit | Main | Ind. Law - Yet another confusing story about the legality of golf carts of public streets and roads »

Thursday, August 28, 2008

Ind. Courts - Yet again on "Landowner calls move by pipeline company as intimidation"

Updating this June 11th ILB entry (see all ILB entries on "pipeline" here), Jason Thomas of the Indianapolis Star has an interesting report today. Some quotes:

A paragraph in a Decatur County zoning ordinance has led the developers of a multistate natural gas pipeline to file a lawsuit in federal court.

Rockies Express Pipeline LLC filed the lawsuit Tuesday in U.S. District Court in Indianapolis, seeking a temporary restraining order against the Decatur County Commissioners and the county Plan Commission.

At issue is a 2007 amendment to the Decatur County zoning ordinance that requires a 6-inch or larger gas line to maintain a 500-foot setback from any structure that is not receiving service from the line.

Rockies Express has been awarded federal approval to build the eastern leg of a 1,600-mile pipeline from Colorado to Ohio. The eastern leg, called Rockies Express-East, will go through nine Indiana counties, including Decatur, as it stretches from Missouri to Ohio.

Because the pipeline is 42 inches in diameter, it would be subject to the Decatur County ordinance.

But Rockies Express argues that the construction of an interstate natural gas pipeline is regulated by the Federal Energy Regulatory Commission through the federal Natural Gas Act, which pre-empts any county ordinance.

"Enforcement of the ordinance . . . constitutes an illegal attempt to regulate facilities used for transportation of natural gas in interstate commerce," the lawsuit states. The suit also states "REX will suffer irreparable harm" if the county enforces the ordinance.

Pipeline officials say the lawsuit is merely formalizing an informal agreement with county officials that the county would not enforce its ordinance.

Brian Keith, president of the Decatur County Plan Commission, said Rockies Express told county officials in a letter a few months ago that it did not have to abide by the ordinance because the pipeline is a federal project.

"This just takes me completely by surprise," he said of the lawsuit, adding he thought it was merely a formality.

In addition to the injunction, the pipeline also is seeking damages, attorney fees and court costs.

Posted by Marcia Oddi on August 28, 2008 10:22 AM
Posted to Indiana Courts