Yesterday’s Interim Joint Natural Resources Committee meeting proved controversial due to the discussion of the new Bluegrass Pipeline.  The committee room as well as an overflow room were full of both supporters and mainly protestors.  At issue were safety and environmental concerns, and eminent domain issues.

The Bluegrass Pipeline’s developers – Williams and Boardwalk Pipeline Partners, LP – began the meeting by explaining the pipeline and touting their environmental and safety record.  Williams and Boardwalk also addressed the economic benefit of the pipeline.  When questioned by members of the General Assembly about eminent domain, Williams and Boardwalk stated that they believed they had eminent domain authority because of the benefit that they provide to the Commonwealth.

The Secretary of Kentucky’s Cabinet for Energy & Environment, Dr. Len Peters, disagreed with this assessment, however.  Dr. Peters stated that the General Council for the Cabinet does not see how eminent domain can be invoked.  Dr. Peters also said that his Cabinet does not have authority to regulate the pipeline after it is built.  Jeff Duran, with the Kentucky Public Service Commission, also said that the PSC has no role or authority over the pipeline.

Finally, Tom Fitzgerald with the Kentucky Resources Council , expressed three areas of concern: (1) the absence of comprehensive advanced review of siting and need for the pipeline; (2) eminent domain concerns (read more about his concerns here); and (3) the Cabinet for Energy & Environment’s regulatory authority.  Mr. Fitzgerald asserts that the Cabinet may promulgate regulations under KRS 224.1-400(2) to oversee pipeline activities.

Mr. Fitzgerald urged the Governor to call a Special Session to address these issues.  While a Special Session will probably not occur, the issues raised by this meeting will be important during the 2014 Legislative Session.