The Georgia Department of Transportation today denied Kinder Morgan's request for a Certificate of Need for its proposed pipeline.
The Palmetto Pipeline is a 360-mile fuel pipeline that would run from Baton Rouge, Louisiana, through Belton, South Carolina, through North Augusta, across the Savannah River and on to Jacksonville, Florida.
The pipeline could carry a capacity of 167,000 barrels of fuel per day.
The certificate, if it had been issued, would have allowed Kinder Morgan to use eminent domain to seize private land to build the pipeline. Kinder Morgan applied for the certificate on Feb. 13.
Commissioner Russell McMurry, of Georgia DOT, said in a statement that the decision to deny the certificate came after seven public meetings, two public hearings by Georgia DOT and approximately 3,000 public comments online and by mail.
In the commissioner's decision, he states that "Georgia has experienced increased population growth, but less fuel consumption over the last few years.
"In the past 10 years, the highest fuel consumption in Georgia occurred in 2006 when it was at 6.5 million gallons per year," he said. "An analysis of that data indicates the 2016 projection for fuel consumption is approximately 8 percent lower than the 2006 high, and the 2020 fuel consumption forecast is approximately 9 percent lower than 2006."
The commissioner goes on to state that there is "no evidence that the pipeline would serve to reduce the price of fuel in the region."
Kinder Morgan can appeal the decision. The company has 30 days to petition the court for a reversal, and Kinder Morgan has stated previously that it would do so if denied. The appeal would likely be to the Fulton County Superior Court.
"We are disappointed with the outcome of our proceedings with the Georgia DOT," said Kinder Morgan Products Pipelines President Ron McClain. "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," he said.
He continued, "The fact the proposed pipeline is fully supported by long-term commitments from multiple customers seeking safer and more efficient supply options, and that it was so vehemently opposed by certain existing refined petroleum suppliers with vested economic interests in maintaining the status quo of artificially higher prices, is itself compelling evidence that the pipeline will serve needs that are not being met by current supply options.
"We continue to believe in the viability of the project and its economic benefits to the Southeast region and Georgia, in particular; and we plan to pursue all available options to move forward with the project."
McClain went on to say that Kinder Morgan appreciates the feedback it has received.
He said the company will continue to work toward reaching "mutually beneficial agreements with landowners and to cooperate with applicable agencies and other stakeholders in order to minimize or eliminate potential environmental impacts."
What that means for the future of the project, at this point in North Augusta, is up in the air.
There is a scheduled meeting in North Augusta on Thursday at 6 p.m. at the Community Center.
The meeting is not sponsored by state government, though S.C. Sen. Shane Massey, R-Edgefield; S.C. Sen. Tom Young, R-Aiken; S.C. Rep. Bill Hixon, R-North Augusta; S.C. Rep. Bill Taylor, R-Aiken; and S.C. Rep. Bill Clyburn, D-Aiken, are expected to attend.
What steps Kinder Morgan would take if it loses an appeal are unknown.