Dive Brief:
- Georgia lawmakers have passed a bill to restrict the use of eminent domain for pipeline projects, causing Kinder Morgan to halt work on its Palmetto Pipeline, the Florida Times-Union reports.
- The project was designed to transport refined petroleum products from Jacksonville, Fla., to South Carolina.
- Kinder Morgan announced on its web site that work on the project had been halted because of an "unfavorable action by the Georgia legislature regarding eminent domain authority."
Dive Insight:
Last week, the Atlantic Business Chronicle reported that the bill issuing a temporary moriatorium on pipeline companies' ability to use eminent demand was being sent to Georgia Gov. Nathan Deal (R)'s desk. The legislation was spurred by concerns over the Palmetto Pipeline project, the news outlet reports.
Gov. Deal would have until May 3 to sign it into law. But after that point, the state would establish a commission to study the eminent domain law while temporarily halting the taking of land for pipeline projects.
According to a statement on Kinder Morgan's web site, the company "has suspended further work on the Palmetto Pipeline project, following the unfavorable action by the Georgia legislature regarding eminent domain authority and permitting restrictions for petroleum pipelines. While this legislative action was disappointing, we remain committed to providing customized transportation solutions to our customers."
