ATLANTA, GA (WFXG) - The Georgia Department of Transportation announced Tuesday that it won't allow Kinder Morgan to seize privately-owned land in order to build the Palmetto Pipeline.
GDOT denied the company's request for a certificate of public convenience and necessity that would have allowed them to invoke eminent domain.
Kinder Morgan wants to build the $1 billion pipeline that would run between Belton, S.C. and Jacksonville, Fla. The system would transport gasoline, ethanol and diesel to North Augusta, S.C., Savannah, Ga. and Jacksonville, Fla. Company officials said they believe there is an economic need for an additional line across hundreds of miles in Georgia.
But in a letter to Kinder Morgan, GDOT Commissioner Russell McMurry said the pipeline is not needed because fuel consumption in Georgia is down from 2006 and is expected to decline more.
"The evidence reflects an overall downward trend in fuel consumption and the idea that the pipeline is needed to address current and future demands is simply not supported," McMurry said.
Kinder Morgan officials said they are looking at other options so that they can move forward with the pipeline project.
"We are disappointed with the outcome of our proceedings with the Georgia DOT. We believe that we have more than adequately demonstrated that this project is in the best interests of Georgia's consumers, as it will result in lower costs and provide safer transportation of refined petroleum products to many areas in the Southeast, including specifically many communities in Georgia," said Kinder Morgan Products Pipelines President Ron McClain.
"We continue to believe in the viability of the project and its economic benefits to the Southeast region and Georgia in particular," McClain said, "and we plan to pursue all available options to move forward with the project."