Eminent Domain: 100-year-old pipeline deal disrupts Round Rock neighborhood

ROUND ROCK (KXAN) — The grassy lot behind Orlena Mehrabian's home has looked more like a construction site than a rural landscape since work on an Atmos Energy pipeline started last year. She says the project and the outdated deal it's based on have unearthed new concerns about landowners' rights.

"I've been living here almost 30 years, and that's when they came out here. And they just showed up one day out of the blue," Mehrabian said.

Mehrabian said the first visit from Atmos crews happened in 2021, but this latest, more involved construction started in 2024.

She said Atmos sent a letter about the project to her home this past spring. It explained that the utility company owns the pipeline's easement, granting it the right to use her property to access it.

The letter said that Atmos's plan is to replace the existing 4-inch gas line with a 16-inch line. To do that, they must expand the easement, using more of Mehrabian's land.

"They're expanding the easement from 20 feet to 50 feet. They can expand that easement if they want to, and this easement here is 257 acres," Mehrabian said.

Century-old pipeline deal the foundation for recent construction

Mehrabian provided documents sent to her by Atmos, part of which detailed how the company acquired the easement for the pipeline.

According to those documents, Atmos inherited the rights from Lone Star Gas Company, which purchased the 257-acre easement for $39 in 1928.

"Easements that are 100 years old are very limited in their language. Most of the easements you see are just basically a couple paragraphs," said Chris Clough, a local eminent domain attorney.

Clough said once an easement agreement is made, it's often difficult to break it, even if a party wasn't part of the initial deal.

"That's one of the most important things that they will insist on within the easement document, is that they don't lose their rights just by property owners selling the property," Clough said.

Since learning that the easement could be expanded to 257 acres, Mehrabian and her neighbors have circulated letters and petitions asking that the pipeline be moved from their properties to follow along roadways.

As of this week, the path for the pipeline remains unchanged.

"I have no problem with Atmos rerouting it and going that way. It would be safer," Mehrabian said.

When asked about this dispute, Atmos Energy provided a statement saying it is updating neighbors about the project and is working within the rights afforded by the easement.

Atmos Energy is performing a pipeline replacement project across landowners' property pursuant to its existing easement rights. Even though we have all necessary property rights required to perform this project, we recognize that these types of construction projects can be disruptive to landowners, so we have contacted all landowners to make sure that the construction is as un-intrusive as possible.

We value the communities we serve and always strive to treat property owners with courtesy and respect. We are available to our landowners to answer questions they may have regarding the project.

Statement from Atmos Energy

This story is part of an ongoing series investigating eminent domain issues in Central Texas. The original investigation features insight from lawmakers who regulate entities with eminent domain rights. Read that investigation here.