Healthy Gulf v. US Army Corps of Eng, No. 22-60397 (5th Cir. 2023)
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Driftwood LNG and Driftwood Pipeline (jointly “Driftwood”) want to convert natural gas produced in the United States into liquefied natural gas (“LNG”) for export to international markets. That undertaking involves building an LNG production and export terminal and a pipeline that will connect to existing interstate pipeline systems; the terminal would be located on the Calcasieu River in Louisiana. Numerous federal and state agencies are involved in the approval and permitting process for projects such as Driftwood’s. One of those agencies— the U.S. Army Corps of Engineers (“the Corps”)—granted Driftwood one of the requisite permits. Petitioners Healthy Gulf and Sierra Club petition for review of that permit, alleging that the Corps’s decision violated the governing statute and was arbitrary and capricious.
The Fifth Circuit denied the petition. The court explained that the record reveals thorough analysis and cooperation by the Corps and other agencies and a lucid explanation of why the Corps was permitting a departure from the default hierarchy. The court wrote that the approval process spanned several years and involved detailed analysis by (and often the cooperation of) FERC, the Corps, the EPA, the National Marine Fisheries Services, the Louisiana Department of Wildlife and Fisheries, and LDEQ, among others. The administrative record is over 24,000 pages and provides more than enough insight into the agencies’ deliberations. Moreover, the court explained that both the Corps and the Louisiana Department of Natural Resources (which issued Driftwood a Coastal Use permit) imposed conditions on Driftwood to ensure that it did not dredge and use contaminated material.
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