Williams Barnett Gathering System began condemnation proceedings last month after the Flower Mound Town Council turned down the company's request for a 30-foot pipeline easement at a fire station located at FM 1171 and Shiloh Road.
The town filed an appeal Friday after Denton County Probate Judge Don Windle ruled that his court has jurisdiction to hear the case.
While pipeline companies have used the eminent domain to acquire easements on private property, Flower Mound contends that it has immunity from lawsuits. The case may set a legal precedent in Texas.
"We believe it eventually will have far-reaching consequences around Texas," said attorney Robert Brown, who is representing Flower Mound in the case.