TEXAS CITY BARRED FROM INSURANCE-RELATED SHUTDOWN

The Texas city of Austin has been told that it cannot shut down pipelines because operators have failed to meet regulatory insurance requirements. US District Court judge Sam Sparks said that an ordnance that required pipeline operators to have at least $90m in general liability and environmental impairment insurance in place was not enforceable, on the grounds that municipal authorities do not have that authority. The judge did not address the general issue of whether cities have the right to impose local insurance requirements on pipeline operators, leaving open the possibility that a new ordnance could be drafted to address the insurance requirements, but not to claim the authority to shut down the pipeline if those requirements are unmet.