(Reuters) – A U.S. appeals court on Friday suspended approvals and permits needed to a Kinder Morgan (NYSE:) subsidiary will build a 32-mile gas pipeline in Tennessee at the urging of environmental groups.
The proposed Cumberland Project, to be constructed by Kinder Morgan’s Tennessee Gas Pipeline, could transport approximately 245,000 additional dekatherms per day to energy supplier Tennessee Valley Authority.
In a 2-1 vote, the Cincinnati-based 6th U.S. Circuit Court of Appeals voted down the Tennessee Department of Environment and Conservation’s order for the issuance of a water quality certification and the issuance of a permit by the Army Corps of Engineers.
The request for a delay was filed by environmental groups Appalachian Voices and Sierra Club, which argued that the pipeline’s construction could have harmful effects on the environment.
The court said a delay was appropriate to allow time to consider the merits of the environmental groups’ case.
It said further arguments in the case would be heard in December.
A spokesperson for Kinder Morgan said the company disagrees with the court’s decision, which it will continue to review as it evaluates its options.
Appalachian Voices and Sierra Club did not immediately respond to Reuters requests for comment.
