A panel of three judges on the US Court of Appeals for the Fifth Circuit ruled against environmentalists Wednesday who were challenging permits issued by the Federal Energy Regulatory Commission (FERC) and U.S. Army Corps of Engineers (Corps) for a liquid natural gas terminal and pipeline in Louisiana called the Driftwood project.
Environmentalist groups Sierra Club and Healthy Gulf filed a challenge to the permits, saying that FERC and the Corps did not follow proper administrative protocols and that the decision was arbitrary and capricious. Specifically, they took issue with the evaluation of alternative sites for the project and that there was not an adequate explanation for the agency’s deviation from what they called a “rigid” hierarchy of mitigation schemes. At the time they filed the suit, the Sierra Club attorney said:
It is unacceptable for FERC to claim that this project is in the public interest, as there is ample evidence that this project is not only unnecessary and will contribute to adverse impacts to communities in an already industry-overburdened region, but also because the Commission has failed to adequately consider the true scope of harm from this project.
The court rejected the arguments from the Sierra Club and Healthy Gulf, saying the groups had ample notice to submit comments during the permit process and that sufficient explanations were provided before permits were issued. Additionally, the court stressed that the Corps has the statutory authority to “override” the mitigation hierarchy “where appropriate.” Because the court felt that adequate explanation and notice were provided, it gave deference to the administrative agencies and upheld the permits. This allows the Driftwood project to move forward, which is expected to begin producing liquid natural gas by 2027.
Environmentalists have been increasingly turning to lawsuits to enforce and expand environmental protections, with mixed results. Courts have recently ruled against natural gas companies, overturned state laws regulating natural gas and ruled in favor of youth climate activists.
