Holdout Forces Reroute Of Pipeline

By Gordon HopkinsThe objections of a single landowner have stalled the advance of a 20-mile long natural gas pipeline, forcing the company to consider an alternative route through a county right-of-way. While Jefferson County Commissioners are concerned about pipelines in the right-of-way, Nebraska law may give them no choice. Tallgrass Energy has begun work in Jefferson County on laying the approximately 20 miles of 36-inch pipe that will make up the Rockies Express natural gas pipeline that will span from Wyoming to Ohio, traversing much of Nebraska, including through the northern part of Jefferson County.The project is expected to be completed sometime in mid-2024. Once complete, the pipeline is expected to carry up to 800,000 dekatherms (one million Btu) a day.Representatives for Tallgrass met with commissioners at a meeting on Tuesday, May 19, 2024. Shawn Bates, Vice President of Land and Right-of-Way for Tallgrass, told commissioners, “Related to our new project, it would have roughly $1.2 million in new county property taxes coming in.” Reason for the ReroutingTallgrass is considering altering the original planned route of the pipeline. Bates said, “With our new project, we’re looking at a reroute right on the very north end of the county as we go into Saline.”Commissioner Mark Schoenrock asked, “What’s the cause for the reroute?”Lindsey Jarrell, Land and Right-of-Way Manager for Tallgrass, said, “We have been negotiating with the landowner there. We started our initial survey commission about two years ago. And they have retained outside counsel. So, we are working through outside counsel on various items, but looking at this as an additional option if we’re not able to come to terms with the landowner.”Schoenrock asked, “What’s their concern? Is it financial, environmental?”“We’ve tried to address their concerns, but their response has been to talk with their outside counsel,” said Jarrell. “So, we’re not quite sure what their exact concerns are. The main feedback that we’ve gotten is that it’s virgin. That field is virgin farm ground without a current pipeline on it.”Jarrell said they still hope to make a deal with the landowner, “We really tried but communication has been limited. So, we kind of have our hands tied a little bit with outside counsel, but we do have our counsel working directly with them. You know, we’re offering them a fair price for it. I haven’t really been able to get their specific concerns. So it’s hard to address them without getting their specific concerns.” Pipelines in the Right-of-WayCommissioner Michael Dux told the Tallgrass Representatives, “I know last week we had some landowners in here worried about a water line on county right-of-way. And now we’re worried about a 36 inch natural gas pipeline. I guess I’m concerned about that.”The Little Blue Natural Resources District (LBNRD) requested permits for use of the county right-of-way intended to transport water from a new well field. Some people present at the meeting opposed the project. However, used of the right-of-way was approved by commissioners. Legal QuestionsCounty Attorney Joseph Casson was present at the meeting and requested time to review the matter for commissioners approved use of the right-of-way.“Well, this is the first I’ve heard of this. Typically, we don’t do that. I don’t think we ever have done that. And as I understand it, the only reason we’re doing this is the landowner won’t cooperate, said Casson. “So, I want to look at it, because that’s not the way we treat our landowners.”Schoenrock said he hoped an agreement with the landowner can be reached, “My thought is if we could have some kind of an increased mediation with the landowner so that we can get their agreement, so that we don’t have to do this on county right away.”“You need to understand where we’re coming from. Our county just went through a major spill on the Keystone pipeline, just south of our county. And so we have recent experience in other domains, pipeline catastrophe. And we went through a very lengthy negotiation process with TC Energy,” said Schorenock. “So we’re, you know, we’re just a little bit gun shy, I guess is a good word.”Bates indicated Nebraska law may not give the county the right to deny Tallgrass’ request, “To that point, I would just like to call out, just so it’s on the record and everyone can review it, there is a statute that may be favorable here. And it’s Nebraska Revised Statute 57-1102.”According to that statute, “Any such person, company, corporation, or association, in the laying, relaying, operation, and maintenance of any such pipeline within the State of Nebraska, shall have the right to enter upon and cross, with such pipeline, any public road or highway, under such reasonable regulations and restrictions as may be prescribed by the Department of Transportation, if it is a state or federal highway, or by the county board of each county, as to all other public roads and highways within such county, and shall also have the right to lay, relay, operate, and maintain such pipeline in and along any public road or highway.”Bates added, “If there’s a reasonable way we could put together, assuming we can’t get the landowner on board and sign a voluntary easement for us, we would like to work with the board, with the road department, on finding a solution. ConstructionPer details provided by Tallgrass, the construction method will be open trench. When completed, the top of the pipe will be four feet below the surface. Pipe will be installed in the eastern bar ditch along 575th Avenue and in the southern bar ditch along Y Road. Extra workspace will be used along 575th Avenue, south of the reroute, and on Y Road, west of the reroute.According to Tall grass, phase one of the project, the 575th Avenue segment, is expected to begin on May 27 of this year and will take approximately five weeks. Phase two is the Y Road segment and will take an estimated five days to complete.Rerouting of traffic will be required during construction. This project is expected to be completed by July 12, 0224.Tallgrass representatives also assured commissioners that the roads will be returned to their original or better condition.No action was taken at the meeting.

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