UPDATE: The pipeline partners announced late Wednesday that the project would be delayed as long as a year. Also, an earlier version of this story contained an incorrect address for the easement.
By Kayla Pickrell
University of Kentucky School of Journalism and Telecommunications
The Bluegrass Pipeline project that would carry natural gas
liquids through northwestern Woodford County has filed only one easement
in the county, but it indicates where the pipeline would cross the Kentucky
River.
Opponents of the pipeline have focused much of their
criticism on the number of streams that it would cross, with special attention
to the river.
On the Bluegrass Pipeline
website, a
map of Kentucky roughly shows the proposed route for the line. The property
with the easement,
at 7400 McCracken Pike, lots 8 and 9 of the Shoreacres subdivision, appears to be in the route shown on
the site.
The company is seeking easements from landowners in about a
dozen counties, and says it has obtained about two-thirds of what it needs.
Based on easements recorded with county clerks, it appears to have had more
success in Scott and Anderson than in Woodford and Franklin.
Only two easements have been filed in Franklin County. The Lexington Herald-Leader
reported Monday that 80 had been filed in Anderson
County and 57 in Scott County.
The Franklin County easements are for adjoining tracts that
are separated from the Kentucky River and the Woodford County tract by two or three other tracts.
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Combined property maps of Franklin and Woodford counties (click on image for large version) |
Andy McDonald, a director of the Kentucky Conservation
Committee, an environmental advocacy group, said that because the river serves
as a water source for the area and feeds into the Ohio River, a leak could be
“catastrophic to the water supply of millions of people, including Frankfort
and Louisville.” He added, “This project really does need a specific
environmental evaluation to the location the pipeline would be.”
The Woodford County easement is for property owned by
Stephen K. Goodrich, whose address is listed as 7400 McCracken Pike. The Franklin County easements are for properties owned by
James Randall Gay and Wanda Gay at 2551 Ninevah Road, Frankfort.
The McCracken Pike easement says Goodrich received “the sum
of Ten and No/100 Dollars ($10.00), cash in hand paid and other good and
valuable consideration,” Which is not specified.
In some other counties, early easements included a
consideration certificate to show how much money changed hands. Such easements
in Nelson County range from $5,000 to $48,162.
Goodrich’s easement says the
transaction is not subject to the law taxing property transfers, which requires
that the actual consideration be revealed so the proper transfer tax can be
levied.
Joe Hollier, a pipeline representative, said it has obtained
easements in the Midway area but did not explain why they have not been
recorded. He said the company was not able to discuss details of the
easements. But he said in an email, “So far, Kentuckians have received more
than $27 million for easements, much of which will flow through local
economies.”
Some landowners have refused to grant easements. Pipeline
officials say they have the right to condemn property, with court-ordered compensation, under
the state law giving eminent domain to energy pipelines. Opponents argue that
the pipeline lacks condemnation power because it would not serve Kentucky
customers as a utility.
Bills have been filed in the legislature to clearly prohibit
the use of eminent domain by such pipelines. Rep. John Tilley, D-Hopkinsville,
plans to hold held a hearing at noon Wednesday on his
House Bill 31, which would
allow condemnation with permission of the state Public Service Commission,
which would have to solicit input from the public and act in the public
interest, considering protection of the environment, including groundwater;
“reasonableness” of the route; “promotion of a safe and efficient
transportation infrastructure,” and “safety, construction and operational
protocols” of the pipeline.
UPDATE: Tilley delayed a vote, saying members of the Judiciary Committee, which he chairs, needed more time to study a revised version of his bill, which would bar developers of NGL pipelines from using eminent domain. Industry representatives spoke against the bill; state Rep. James Kay, D-Versailles, spoke for it. Gov. Steve Beshear issued a statement supporting it.
UPDATE, Feb. 26: The committee approved the bill. It now goes to the Rules Committee, which could send it to the floor or to another committee.
The project sent flyers to homes in the counties
along the route saying that 6,000 to 7,000 temporary jobs will be created
during construction and around 30 will remain as full-time employees to operate
the pipeline.
“Communities along the Bluegrass Pipeline will see millions
of dollars in tax revenues and other economic benefits as construction
personnel and eventually full-time pipeline personnel spend money on supplies,
food and lodging,” the flyer said.
Lorraine Garkovich of Versailles takes issue with these
claims, saying the promised jobs will not be in Woodford County.
“Their own representatives say local hiring is limited
because they have their own construction crews with pipeline experience,”
Garkovich wrote in a letter to the Herald-Leader. She
is a rural sociologist who teaches in the Department of Community and
Leadership Development in the University of Kentucky’s College of Agriculture,
Food and Environment.
Hollier said the pipeline would bring in approximately
$620,000 a year in new property taxes in Woodford County, and the construction
would take about a year. He noted that the company has also established a grant program that would
benefit communities near the pipeline.
According to the U.S. Energy Information Administration,
natural gas liquids are “used as inputs for petrochemical plants, burned for
space heat and cooking, and blended into vehicle fuel.” NGLs can be ethane, propane, butane, isobutane and pentane.
The pipeline would transfer the liquids from Pennsylvania to Louisiana,
reversing the flow of a line that runs from Louisiana to Hardinsburg, Ky.
Unlike trucks or railcars, a pipeline wouldn’t be able to
contain the liquids if there was a leak, McDonald said. Because of the karst
topography in Kentucky, the pipeline could provide a constant flow of NGLs into
underground caves and streams until the leak is detected, which could be
hundreds of feet or potentially miles, he argued.
The pipeline's developers say it would be constructed with safety in mind and closely monitors. McDonald said the KCC questions whether the Kentucky
environmental emergency response budget has enough funds to respond if a leak
happens.