Port Arthur leaders seek higher pipeline permit fees, updates to decades-old rules

Port Arthur leaders are moving to update decades-old pipeline permit fees and rewrite the city’s pipeline ordinance, saying the current rules have allowed pipeline companies to pay bargain rates for years.

Pipelines running through parts of Port Arthur have been in place for decades, but the city’s Public Service Director Suhail Kanwar said the fees tied to pipeline permits have not kept up. “We have not changed our fees for some time,” Kanwar said.

Kanwar said the city is looking to increase those fees because they are out of step with what other cities charge. “They are relatively lower compared to other cities. We are looking into modifying it and bringing to the more of a market level,” he said. Kanwar said the city is “leaving money on the table” because of the low fees.

The city manager agrees with the need for changes and said Port Arthur is rewriting its pipeline ordinance, calling it outdated and in need of revisions to better align with state law. City officials said the process could take six months to a year.

Kanwar said the city must ensure any changes comply with state requirements. “We have to really research and make sure that our legal department and us, we are within those guidelines by the State,” he said.

City Manager Ron Burton said the city is searching for a new permitting coordinator to help complete the research. Despite the concerns about outdated fees and rules, the city said it has issued only two pipeline permits within the past year.

City officials said any proposed fee increases and ordinance changes will be brought back to the Port Arthur City Council for approval once the review is complete.