Question of the week – There are rumors of a new pipeline coming to my community. I’ve heard of another town with its own pipeline ordinance, but I also hear that it’s not up to the community and we really have no say. Should we pass our own ordinance and will it help?
You can pass your own ordinance, but whether it will help or not depends on where you are, what type of pipeline is proposed, and what the ordinance says.
It is true that in some circumstances communities “have no say,” but not all. There are a few circumstances over which the federal agencies have exclusive authority: FERC (Federal Energy Regulatory Commission) has exclusive authority over the routing of new interstate natural gas pipelines; and PHMSA, the federal pipeline safety agency, retains authority over rulemaking and enforcement of safety regulations governing oil and natural gas pipelines. States can seek certification from PHMSA to regulate the safety of intrastate pipelines, and once certified can write stronger regulations for those pipelines than the federal minimum regulations established by PHMSA. States can take on a stronger role in other areas as well – but that is a subject for another post. If not disallowed by the state, local communities can have an important role when it comes to land use and pipelines.
For situations where local rules are not preempted by other state or federal laws, there are a number of options for action:
When a pipeline is built, the pipeline operator typically needs to get road crossing permits and negotiate franchise agreements or easements for crossing public roads, using road rights of way or crossing parks or other land owned by the local government. Some communities do this as they need to, and others have an ordinance that governs all these types of franchise agreements or easements between the town/county and the pipeline operator. This type of ordinance typically avoids preemption issues with state or federal law, though we recommend consulting with an attorney in your area. Franchises can address things like notification to the local government, maintenance of the right-of-way, availability of information, required payments by operators, circumstances where relocation of the pipeline may be necessary (and who would pay for it), pipeline abandonment, insurance and financial guarantees, and other issues. For examples of franchise ordinances, see the Franchise page on our website.
There are also community ordinances that establish a setback or consultation area between the pipeline and certain development, homes, or businesses. There are no federal regulations that set an absolute minimum distance that a pipeline can be built from a house, so a number of communities have moved forward on their own to do this. One option is to establish a ‘consultation zone’ so the pipeline owner and property owner or developer of any new project have to talk with one another prior to going ahead with the development or the new pipeline. Another option is to pass an ordinance requiring setbacks that vary depending on what type of residential uses exist near the pipeline. We have examples of these types of ordinances as well on our website.
Setbacks are often intended to help prevent damage to the pipeline by people doing something stupid on top of it (like installing a swimming pool or fence), or to aid in evacuation by offering a bit more time for folks to get out of the area. But they are likely not wide enough to protect a person from an explosion on a high pressure pipeline (for larger diameter high pressure gas pipelines, that distance may need to be over 1,000 feet).
A local government could also choose to treat new pipelines as a conditional use and require a pipeline proponent to apply for and receive a conditional use permit before beginning construction within the jurisdiction. You can find an example of this option on our website as well (see Colorado example).
Chapter 4 of our Local Government Guide describes in more detail options that local communities have as they think about how best to prepare for the prospect of a new pipeline coming to town.