From the moment he purchased 53 acres of property in Blanco County two years ago, Matt Walsh knew that’s where he wanted to build his dream home.
Those dreams quickly turned into a nightmare when Walsh fought Kinder Morgan’s attempt to carve part of its 420-mile Permian Highway Pipeline (PHP) through his property. It was one of the first condemnation hearings involving the PHP in the Hill Country, a project that could impact Blanco, Hays and Caldwell counties.
“It was so unrealistic on how they (Kinder Morgan) determined compensation and they don’t take into account how many trees you lose, or a creek that might be destroyed or dealing with construction for two years.”
–Matt Walsh, land owner in Blanco County
While Walsh eventually won a $233,500 settlement Aug. 6 allowing Kinder Morgan to use the land – 11 times more than the firm’s initial appraisal – he is now looking to chase his dreams elsewhere. All the while, Walsh remains frustrated with Kinder Morgan, with whom he felt lacked transparency in the process.
However, Alan Fore, Kinder Morgan Vice President of Public Affairs, refuted claims of a lack of transparency, adding the company plans to appeal the settlement.
“After I found out about the pipeline, all my plans have been put on hold, maybe indefinitely,” Walsh said. “I don’t feel safe living close to a massive pipeline like that.”
Walsh said he first got notice of Kinder Morgan’s intentions to use his land in October 2018. Initially, a Right-of-Way (ROW) agent with Kinder Morgan identified himself and informed Walsh about what they were seeking; Walsh said he wasn’t interested.
Several weeks later, Walsh was contacted by another agent who said if he didn’t give permission for them to access his land, the company would issue a temporary restraining order against him.
From there Walsh obtained legal representation and began to combat Kinder Morgan. DuBlanco CountyBlanco Countyring the fight, Walsh said he and his neighbors dealt with agents who were “rude and pushy.” Many agents didn’t notify Walsh or his neighbors when going on their land to conduct an appraisal.
Fore said he was not aware of any allegations of inappropriate behavior by land agents “that is substantiated and we can follow up on.” Kinder Morgan also has a “very visible” informational process where landowners receive “significant amounts” of literature about the condemnation process.
He added that it “bothers me to an enormous extent when folks are being treated unfairly” or are not getting information they need. Kinder Morgan agents are “professional” and any behavior that goes beyond their training shouldn’t happen and should be reported, Fore said.
“We have an obligation to follow a process and we’re following that process and if there’re instances where it’s not being followed, I want to know about it,” Fore said.
Kinder Morgan officials submitted a $16,000 appraisal for a 50-foot easement on the land, citing no damage would occur, according to officials with the Texas Real Estate and Defense (TREAD) Coalition, a group working with landowners impacted by the PHP.
According to a third-party appraisal by a company Walsh consulted, impact and damage caused by construction of the easement devalued his land by approximately $261,000, leading him to reject the offer and go to court.
“It was insulting and quite frankly a joke,” Walsh said. “It was so unrealistic on how they determined compensation and they don’t take into account how many trees you lose, or a creek that might be destroyed or dealing with construction for two years.”
On Aug. 6, a commission of real estate experts ruled in Walsh’s favor during a hearing held at the Blanco County Court House. Patrick Reznick, a condemnation attorney representing Walsh, said in a statement he wasn’t surprised commissioners understood the “significant damages” the pipeline could have on land and property values. Reznick said Hill Country landowners have been saying “for months” the pipeline could devalue their land by 20 to 40 percent.
Kelly Darby, a TREAD representative, said Walsh’s experience confirms that Kinder Morgan is not offering landowners fair value for property, despite the firm claiming otherwise. Darby said commissioners were “savvy” with the impact the pipeline could have on the Hill Country.
While condemnation hearings are taking place in various parts of the Hill Country regarding the PHP, Darby said more cases are forthcoming this fall.
“Kinder Morgan is grotesquely low balling offers to landowners, even though they’re saying they’re trying to be fair,” Darby said.
Fore said TREAD’s allegations of “low balling” property owners is “absurd,” adding TREAD can “say whatever they want, it doesn’t meant it’s the truth.” Fore said the ruling is an isolated incident that he felt TREAD was “blowing out of proportion.”
However, Fore didn’t comment on the specific figures in Walsh’s case as condemnation negotiations are confidential between the landowner and Kinder Morgan.
While 60 percent of landowners along the pipeline route have settled with Kinder Morgan, Fore did not go into detail where settlements have taken place. Fore said the settlement is a preliminary decision and they plan to take the case into the appellate courts.
“There will be those (cases) where there is a disparity between the valuation and award. Those will happen and will continue to happen,” Fore said. “We are pleased with the progress of landowners and we have easement proceedings completed every day.”
