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Kentucky House OKs bill prohibiting eminent domain use for BG pipeline

kentucky_houseBy JIM BROOKS
Nelson County Gazette

Friday, March 21, 2014, 12:31 p.m. –– The Kentucky House of Representatives approved legislation that will prevent companies like the Bluegrass Pipeline from using eminent domain to acquire easements.

House Bill 31 excludes Natural Gas Liquids (NGLs) from the official definition of “oil and gas products,” thereby preventing the use of eminent domain proceedings to acquire easements for an NGL pipeline.

terry_mills

REP. TERRY MILLS

The debate on the House floor focused on economic development versus the landowners private property rights.

Rep. Terry Mills of Marion County said the issue was about “insuring a balance between economic development and the rights of landowners. It’s about protecting the little guy against the big guy.”

Mills also noted that Kentucky was simply a pass-through state for transport of the NGLs.

“I see no clear public use or service that this [pipeline] will provide to Kentucky.”

In his comments defending HB 31, Rep. David Floyd referred to out-of-state pipeline companies as “carpetbaggers.” Floyd also noted that the pipeline project has acquired all of its easements in Ohio without the benefit of eminent domain.

david_floyd

REP. DAVID FLOY

Some House members expressed concern the measure was focused on stopping a single project. Others cited concerns from labor unions that the bill would kill good-paying jobs.

The bill included provisions to make the legislation retroactive to January 2014. If the bill becomes law, it will go into effect immediately when signed by Gov. Steve Beshear.

The measure moves to the Senate for consideration.

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