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Article

27 Feb 2018

Author:
Nick Cunningham, Oilprice.com

Crucial U.S. Pipeline In Legal Limbo

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A federal judge halted construction on the Bayou Bridge pipeline in Louisiana, holding up the last missing puzzle piece in a pipeline network that stretches from North Dakota to the Gulf Coast.

The project, a joint venture between Energy Transfer Partners and Phillips 66, would run from Lake Charles to St. James, two existing oil hubs with refineries and other processing facilities. 

...A U.S. District Judge issued a preliminary injunction that halts construction on Bayou Bridge, until the lawsuit brought by a set of environmental groups can be adjudicated. The lawsuit argues that the Army Corps of Engineers violated the Clean Water Act when it issued permits for the project.

The groups, including the Sierra Club, argue that Bayou Bridge represents a threat to the Atchafalaya Basin and the communities that depend upon it, and they argue that the government needs to conduct a full environmental assessment. ...While the Army Corps insists that it conducted the necessary environmental reviews, the plaintiffs allege that the risks of an oil spill were not adequately considered.

...ETP said that it will lose $1 million per day while construction is halted. ... ETP also said that it would appeal the decision to the 5th U.S. Circuit Court of Appeals in New Orleans.

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