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Midland City Council Approves Tariff for Atmos Energy's Right-of-Way Use
The new Rate Review Mechanism tariff aims to hold the utility accountable and ensure fair compensation for the city.
Apr. 2, 2026 at 8:41pm
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A new tariff on Atmos Energy's right-of-way use in Midland, Texas aims to hold the utility accountable while maintaining a productive working relationship.Midland TodayThe Midland City Council has approved a new Rate Review Mechanism (RRM) tariff for Atmos Energy's local division, Atmos West Texas. The tariff is meant to increase transparency, reduce the need for litigation, and ensure Atmos is paying its fair share for using the city's right-of-way for natural gas transportation. While the term 'tariff' is used, this is not a direct tax on Midland residents, but rather a fee imposed on Atmos to hold the utility accountable and make sure it is properly managing and repairing the right-of-way.
Why it matters
The new tariff is part of Midland's efforts to renegotiate contracts with utility companies to get the best value for residents while also maintaining good working relationships. Other cities have faced similar issues with Atmos, so this is a collaborative effort to hold the company accountable and ensure it provides quality service at an affordable cost.
The details
The RRM tariff was created by Atmos as a way to increase transparency and reduce the need for litigation when the company proposes changes. In this case, the issue is a right-of-way that Atmos West Texas hopes to use for natural gas transportation. The tariff will serve as a fee for Atmos, and the City of Midland said other cities have undergone similar negotiations with the company.
- The Midland City Council approved the adoption of the RRM tariff on April 2, 2026.
The players
Atmos Energy
A natural gas utility company based in Dallas, Texas that provides service to the Midland area through its Atmos West Texas division.
Lori Blong
The mayor of Midland, Texas who discussed the city's efforts to renegotiate contracts with utility companies like Atmos to get the best value for residents.
John Burkholder
A Midland City Council member-at-large who commented on the standard operating fees paid to Atmos and the city's goal of holding the utility accountable.
What they’re saying
“'Over the last few years, we've talked a lot (not only) about finding efficiencies, but also making sure that we have good processes for all of our negotiated contracts with the city. Part of what we've proceeded with is the renegotiation of some of our contracts with Atmos and other utility companies that come through the city. We're high-grading the process by which we negotiate those contracts to get the best value for Midland residents, but also to work well with them as vendors for our community.'”
— Lori Blong, Mayor
“'The Atmos Energy negotiation is (being done) to make sure that they are paying their fair share, but also that they're managing that right-of-way properly. (In the future) we're applying the same conversation to all of our different utility companies to make sure that they're (taking care of) that right-of-way – (for example) if they have to dig something up, that they repair it properly – and that we're making sure that we're holding people accountable, but continuing to provide a good service for Midland residents.'”
— Lori Blong, Mayor
“'It's just the standard operating fee that they have, it's not something new that we haven't experienced before. Those are fees that have already been paid, we're just negotiating and making sure that those are the right fees and that we're holding (Atmos) accountable. Other municipalities are running into the same issues with Atmos, and so this is a collaboration, a combined effort to make sure that we can hold Atmos accountable (and) make sure they're providing great customer service, but also providing services they need at an affordable cost.'”
— John Burkholder, Councilman-at-large
What’s next
The new RRM tariff will go into effect immediately, and the City of Midland plans to apply similar negotiations to contracts with other utility companies that use the city's right-of-way.
The takeaway
Midland's new tariff on Atmos Energy's right-of-way use is part of the city's broader efforts to renegotiate contracts with utility providers to ensure fair compensation, proper management of infrastructure, and quality service for residents. This collaborative approach with Atmos and other utilities aims to hold companies accountable while maintaining productive working relationships.
