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US appeals court says Bayou Bridge pipeline construction can proceed

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World Pipelines,

Energy Transfer Partners’ Bayou Bridge crude oil pipeline in the Atchafalaya Basin of Louisiana can resume construction following a US appeals court overturning a District Court’s preliminary injunction that was filed in February.

The court filing stated: "Judge Shelly Dick's ruling ran counter to the collective efforts of federal, state, and local regulatory officials, who thoroughly reviewed – and ultimately approved – the Bayou Bridge pipeline for construction.”

The lawsuit was filed three weeks ago by the Atchafalaya Basinkeeper, the Louisiana Crawfish Producers, Gulf Restoration Network, Waterkeeper Alliance and the Sierra Club to challenge the US Army Corps of Engineers’ finding of no significant impact from the project. On 16 March, an appeals court reversed the decision made by a lower court on the aforementioned environmental lawsuit to halt construction of the pipeline.

Energy Transfer Partners on 16 March said it was pleased with the court ruling and would begin mobilising for construction activities as soon as possible.

The project is 60% owned by Energy Transfer Partners with the remainder controlled by refiner Phillips 66. ETP has said stopping construction in the basin would cost it nearly US$1 million daily and US$25 million monthly, however, were unspecific with the actual cost.

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