Appeals court weighs resuming pipeline project in Louisiana
Legal Compliance
A company building a crude oil pipeline in Louisiana is asking a federal appeals court to allow it to resume construction work in an environmentally fragile swamp.
A three-judge panel from the 5th U.S. Circuit Court of Appeals is scheduled to hear arguments Tuesday on Bayou Bridge Pipeline LLC's request. The company is seeking an "emergency stay" that would lift a court-ordered halt in pipeline construction in the Atchafalaya Basin.
On Feb. 23, U.S. District Judge Shelly Dick sided with environmental groups and issued a preliminary injunction that suspended work in the basin until the groups' lawsuit is resolved. The judge concluded the project's irreversible environmental damage outweighs the economic harm that a delay brings to the company. And on Thursday, she refused to suspend her own ruling while the company appeals it.
In court filings, company attorneys claim Dick's ruling "fails the basic requirements" for issuing such an order. The basin accounts for approximately 23 miles (37 kilometers) of the pipeline's 162-mile-long (261-kilometer) path from Lake Charles to St. James Parish.
Dick's order only applies to the basin and doesn't prevent the company from working elsewhere along the route. The company said the work stoppage is costing it up to $500,000 per day in labor expenses and $6 million per month in lost revenue. The judge said the company's estimated losses aren't supported by the "underlying data."
Sierra Club and other environmental groups sued the U.S. Army Corps of Engineers in January, saying it violated the Clean Water Act and other environmental laws when it approved a permit for the project.
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