The Montezuma County Commission on Monday approved six high-impact permits for major Kinder Morgan expansion of CO2 production west of Pleasant View.
The permits include three CO2 wells, water discharge pipelines, CO2 pipelines, and a booster pump station.
The permits are the latest for a $350 million project by Kinder Morgan to expand into the Cow Canyon field, where it leases federal minerals under private land.
The build-out to meet CO2 demand includes 14 new wells, 30 miles of pipelines, power lines and pumping plants.
Kinder Morgan negotiates surface-use-agreements (SUA) with landowners that typically include cash, land improvements, and reclamation.
“We’re working hard to make sure we address everyone’s concerns and evaluate all options,” said Jamie Conway, a Kinder Morgan engineer.
‘One thousand cuts’
Permits for the company haven’t all come easily. But county oversight is limited because of Kinder Morgan’s right to minerals under private land.
In October, county conditions for a power-line plan triggered a Kinder Morgan lawsuit against the county.
And farmers have offered stiff resistance.
Monday’s hearings attracted 40 farmers and landowners. During the three-hour, at times contentious meeting, they expressed concerns about the expansion’s impacts on agriculture, health and property values.
Kinder Morgan representatives Phil Kennedy, Jamie Conway, and Eric Swanson presented the permit requests and responded to complaints and questions.
Trent Rupe’s land is being used for a buried pipeline to move brine water produced from drilling to a disposal well. Language in the agreement bans “roadways” across the site.
“I understand no permanent structures, but I should be able to have a driveway across a buried pipeline to a hay barn,” he said.
Kinder Morgan said it would fix the language and would examine re-routing a discharge pipeline to avoid a wooded canyon Rupe plans to build a hunting cabin on.
The produced-water pipeline and a proposed power line cuts through Jim Farrier’s land.
“The area is becoming a chokepoint for pipelines, powerlines, and irrigation,” he said. “Commercial agriculture here is a huge part of the economy. My fear is that agriculture will die from 1,000 cuts.”
Distrust of dealmakers
Farmers said they’ve had difficulty with Kinder Morgan dealmakers.
“When I’m visited by a (Kinder Morgan) rep and say ‘I’m too busy right now,’ I expect them to say ‘when is a good time,’ not ‘we can condemn your land,’” said Destri Daves.
In Daves’ case, a pumping plant was relocated to avoid a home, but ended up in his viewshed and takes away farmland.
Since local negotiator Bob Clayton left the company, Kinder Morgan has struggled to find someone people trust.
It leads to distrust when one person receives $22,000 for a well site, and another receives $35,000. It was explained that pipeline compensation is based on length, paying out $25 for every ROD, or 16.5 feet.
“Kinder Morgan uses aggressive language in negotiations for it’s surface-use agreements,” Farrier said. “Those without legal counsel are vulnerable.”
A plan for a well on a boundary of two properties enraged landowner Karl Loof.
He said the pad would alter drainage and threaten crops with flooding.
The well was approved.
Kinder Morgan may back off a plan to install 10 miles of private power lines across farmland and along Country Road 10.
The project triggered a lawsuit against the county by Kinder Morgan,which asserts that conditions that favor landowners are illegal.
Scott Emke, of Empire Electric, said Kinder Morgan would revisit contracting with the utility to provide power on existing lines, rather than build one.
jmimiaga@cortezjournal.com