A legal challenge by Texas Hill Country landowners to a proposed natural gas pipeline through the backyards of their multimillion-dollar rural properties has failed.

State District Judge Lora Livingston in Travis County issued a ruling Tuesday dismissing the homeowners’ lawsuit. The decision clears the way for Houston-based energy company Kinder Morgan to exercise eminent domain powers and begin construction on the $2 billion Permian Highway Pipeline Project.

The pipeline will bring natural gas from the Permian Basin in West Texas to a growing market along the Gulf Coast in the Houston area. The company is set to begin construction this fall and have the pipeline operating by late next year.

The homeowners from Gillespie, Blanco, Hays and Caldwell counties flooded Livingston's courtroom last month to oppose the proposed route for the 42-inch steel pipeline. They expressed safety concerns and said the threat of an explosion also will greatly lower their property values.

Moreover, they had argued through their lawyers that the Texas Railroad Commission — the state agency charged with regulating pipelines — should have imposed standards over the project, but failed to do so.

But Livingston was not persuaded, writing that the Railroad Commission does not have legislative authority to tell a private energy company what it can and cannot do. She sided against the homeowners on all three matters.

"The harm alleged by plaintiffs cannot be redressed by the relief sought in this case, and plaintiffs must seek relief from the legislative branch of our government," the judge wrote.

The homeowners are considering appealing Livingston's ruling, according to a statement from the Texas Real Estate Advocacy and Defense Coalition.

"We respect but disagree with Judge Livingston's ruling," the statement said. "We continue to believe the Texas constitution does not allow for the delegation of this awesome power to a private company without oversight."

The group said: "this issue should be heard by an appellate court. We are weighing our options for an appeal and planning additional legal actions in other venues to challenge this severely problematic route.”

Kinder Morgan says the project is expected to bring almost $1 billion in additional revenue each year to the state of Texas to support local schools, first responders and other needs.

“Kinder Morgan is very pleased with the ruling made by the Travis County district court,” Tom Martin, president of Natural Gas Pipelines for Kinder Morgan, said in a statement. “The court’s finding validates the process established in Texas for the development of natural gas utility projects, as well as the steps we have taken to comply with that process. We will continue to engage all stakeholders as we work to complete PHP.”