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Red Oak Pipeline Update: Project Delayed

The Red Oak project is being deferred due to the current business environment, brought on by concerns over the Coronavirus or COVID-19 pandemic. The project has not been cancelled, but work had been put on hold until further notice.

The now delayed Red Oak Pipeline, is a 50/50 joint venture of Phillips 66 and Plains All American Pipeline, would be a system comprised of multiple pipeline projects to transport crude oil from Cushing, Oklahoma, and the Permian Basin in West Texas to the Texas Gulf Coast. The delayed pipelines include the Red Oak Pipeline, Liberty Pipeline, and Ace Pipeline. The Red Oak Pipeline will span 650 miles and will move 400,000 barrels of oil a day, at a cost of just over 2.5 billion dollars.

On the decision to delay the project Greg Garland, chairman and CEO of Phillips 66  said “We are taking action to maintain our financial strength to ensure security of our dividend”

Although it is uncertain when this project will resume, the chances are high that Red Oak Pipeline will eventually go ahead to address the longstanding gap between oil pipeline capacity and production in the Permian Basin and Western Canada.

When work on the pipeline resumes it will effect numerous counties in Texas:

  • Bee County
  • Brazos County
  • Burleson County
  • Chambers County
  • Clay County
  • DeWitt County
  • Falls County
  • Fayette County
  • Goliad County
  • Gonzales County
  • Grimes County
  • Harris County
  • Hill County
  • Jack County
  • Hefferson County
  • Johnson County
  • Lavaca County
  • Liberty County
  • McLennan County
  • Montgomery County
  • Parker County
  • Refugio County
  • Robertson County
  • San Patricio County
  • Tarrant County
  • Washington County
  • Wichita County
  • Wise County

WILL I BE IMPACTED  BY THIS PROJECT?

If your property is in the path of the Red Oak Pipeline, it is possible that your land or property may be condemned. If you receive a notice or a visit from an one of the involved companies do not sign any proposed agreements without proper representation.

Although the project is delayed, if you have received communication from right-of-away agents regarding property you own in the projects path, it is never to early to secure representation. To ensure the proper  and just compensation for your land, the Texas Landowner Bill of Rights grants you important protections in Texas condemnation cases, including the right to seek legal counsel and/or professional representation for assistance in such matters.

WHO SHOULD I CONTACT ABOUT THIS?

The Showalter Law Firm has represented countless landowners facing Texas condemnation actions for oil and gas pipeline projects. For any questions regarding Texas condemnation practices, the Red Oak Pipeline Project, or your possible actions going forward, reach out to Showalter Law here on our website, via phone, or in person at our Richmond Texas office.