US court puts on hold permits for Kinder Morgan unit to build Tennessee pipeline

(Reuters) -A U.S. appeals court on Friday put on hold approvals and permits necessary to allow a Kinder Morgan subsidiary to construct a 32-mile gas pipeline in Tennessee, at the urging of environmental groups.

The proposed Cumberland Project, set to be constructed by Kinder Morgan's Tennessee Gas Pipeline, could transport about 245,000 dekatherms per day of additional natural gas to power supplier Tennessee Valley Authority.

On a 2-1 vote, Cincinnati-based 6th U.S. Circuit Court of Appeals put a hold on the Tennessee Department of Environment and Conservation's order issuing a water quality certification and the Army Corps of Engineers' issuance of a permit.

The request for a stay was filed by environmental organizations Appalachian Voices and Sierra Club, which claimed the pipeline's construction could have detrimental impact on the environment.

The court said a stay was appropriate for it to have the time to consider the merits of the environmental groups' case.

It said further arguments in the case would be heard in December.

A Kinder Morgan spokesperson said the company does not agree with the court's decision, which it will continue to review while evaluating its options.

Bri Knisely, Director of Public Power Campaigns at Appalachian Voices, welcomed the court's decision

"The Cumberland Pipeline poses a major, unnecessary risk to important aquatic habitat in Tennessee, as well as the health and safety of our communities," she said.

Sierra Club did not immediately respond to Reuters' requests for comment.

(Reporting by Vallari Srivastava in Bengaluru and Nate Raymond in Boston; Additional reporting by Chandni Shah; Editing by Shreya Biswas)