HOUSTON—A judge in Louisiana who halted development of a section of Energy Transfer Partners’ (NYSE: ETP) Bayou Bridge oil pipeline last week said on Feb. 27 that her decision was designed to prevent “further irreparable harm” to wetlands.
U.S. District Judge Shelly Dick on Feb. 23 issued a temporary injunction preventing work on an extension to the Bayou Bridge system, revoking a permit and siding with environmentalists and fishermen who have expressed concerns about its potential effect on the local economy and wildlife.
The $750 million pipeline, which is already under construction, is intended to move crude oil from Lake Charles, La., to St. James, La., and pass through the Atchafalaya Basin, a nearly 1 million-acre wetland that is vital to the state’s flood protection system and commercial fishing industry.
The court battle renews a struggle between the oil industry and environmentalists, who are using lawsuits to halt or delay new infrastructure projects. Energy Transfer Partners faced similar controversy over its Dakota Access Pipeline, which was temporarily halted following protests but ultimately began service last year.
“Bayou Bridge Pipeline respectfully disagrees with the District Court’s ruling that the Army Corps of Engineers did not properly consider the limited impacts of construction in the Atchafalaya Basin,” a spokeswoman for Energy Transfer Partners said by email on Feb. 28.
The U.S. Army Corps of Engineers conducted two comprehensive environmental reviews that found no significant impact in the basin, she said.
A representative for the U.S. Army Corps of Engineers declined to comment.
Energy Transfer said this week that it was appealing the ruling.
Environmentalists and local fisherman say so-called spoil banks created during pipeline dredging disrupt natural water flow in the basin and suffocate crawfish.
Louisiana is home to large oil refineries and has many pipelines that cut across the Atchafalaya Basin.
“The court confirmed that the Army Corps can’t just keep issuing more permits for pipelines in the Atchafalaya, and ignoring the fact that they are routinely violated,” Jan Hasselman, an attorney for Earthjustice, the group representing the plaintiffs, said on Feb. 28.
“After decades of noncompliance with the law—which has devastated the Basin—there is a glimmer of hope that the oil and gas industry will start being held accountable,” he added.
The Association of Oil Pipe Lines, an industry group, said pipelines have the least amount of local environmental and climate change impacts compared with other transport methods.
Recommended Reading
UK's Centrica signs $8B LNG deal with Delfin Midstream
2023-07-11 - British Gas parent firm Centrica and U.S.-based Delfin Midstream have signed a 15-year LNG supply agreement.
Shell, Chevron Exit Offshore Indonesia Blocks
2023-07-25 - Pertamina, Petronas pick up Shell’s interest in the Abadi project while Eni takes over operatorship and a majority stake in the Gendalo and Gandang projects.
Earthstone, NOG Close $1.5B Acquisition of Novo Assets
2023-08-15 - Earthstone Energy Inc. has closed the acquisition of the northern Delaware Basin assets owned by Novo Oil & Gas Holdings LLC.
TotalEnergies and INPEX Acquire Offshore Australian Permit
2023-08-21 - INPEX is set to receive operatorship of the field with 74% interests, with TotalEnergies the balance from PTTEP.
Aramco Completes $3.4B Purchase of Rongsheng Petrochemical Stake
2023-07-21 - Armco will also supply Zhejiang Petroleum and Chemical Co. Ltd. with 480,000 bbl/d of crude oil in a long-term sales agreement.