Texas Railroad Commissioner Wayne Christian
American energy works, because it’s reliable, but when reliability erodes, investment slows, infrastructure suffers, and consumers pay more.
Unfortunately, energy reliability is once again in jeopardy, as a European court oversteps its bounds to work around an American judicial ruling and attempts to charge an American energy company millions of dollars.
Case background. The case revolves around Energy Transfer’s Dakota Access Pipeline (Fig. 1) and the violent protests against it in 2016. The protesters, largely rallied by the activist organization Greenpeace, created a makeshift encampment outside the construction site. From there, protests escalated into organized lawlessness and a national smear campaign. Protesters threw rocks and burning logs at law enforcement, locked themselves to equipment, set fires to bridges and barricades, and openly tried to halt a lawfully permitted infrastructure project through intimidation.
They also pushed sweeping accusations about the pipeline’s route and intent. Online, protesters accused Energy Transfer of violating tribal rights by routing the pipeline through sacred lands, even though the company specifically coordinated with tribal leaders to create a route that avoided the issue.
After all that, it seems these “environmentalists” were there to make a name for themselves. They deserted their encampment, leaving behind 21 million pounds of trash, costing North Dakotan taxpayers over $1 million in clean-up costs.
This wasn’t “free speech.” This was a coordinated attack against a necessary pipeline that now keeps energy reliable and affordable for millions of Americans. Thankfully, the courts agreed.
Fig. 1. The Dakota Access Pipeline along part of its route. Image: Pipeline & Gas Journal.
A North Dakota jury ultimately found Greenpeace liable for damages related to its role in the protests, initially awarding $667 million. While the damages were later reduced, a judge this past February ordered Greenpeace to pay $345 million, reaffirming that the organization bore responsibility for unlawful conduct that caused substantial harm.
Hunting a new ruling in Europe. Now, Greenpeace has decided that the court decision holding them responsible for their own illegal conduct is “unfounded and abusive.” They are attempting to subvert the ruling by suing Energy Transfer for the same amount in a Netherlands-based court, a transparent attempt to relitigate an already-settled verdict. The basis for the case is claiming Energy Transfer effectively “bullied” them by using the legal system to defend itself. Unfortunately for Americans, the Netherlands seems eager to indulge this stunt.
Ramifications for trade. This will undoubtedly hurt American and European energy relations. And the attack on our energy sector comes at a time when the EU is publicly trying to wean itself off Russian energy dependence, while the U.S. is trying to strengthen energy independence and protect its citizens from instability and price shocks. Last July, the Trump administration reached an historic trade agreement with the EU, with a commitment to supply them with $750 billion worth in LNG, oil, and nuclear fuel. In the midst of rising conflict with Iran, global energy prices are even more volatile, making the stakes even higher.
If this case goes through, it won’t just punish Energy Transfer. It will hand a roadmap to countless other activist organizations to do the same. Imagine a world where protesters descend on projects they don’t agree with, attack people and property, and then run to Europe to claim that consequences are “bullying” and should be reversed. Energy companies will justifiably be more hesitant to do business with Europeans when they could be next.
Growing judicial concern. Interestingly, but not surprisingly, our leaders in the energy sector aren’t the only ones concerned. A growing body of legal scholars is also sounding the alarm on how this case is a clear assault on American judicial sovereignty and an attempt by EU leaders to force global competitors to abide by their regulations. According to Michal Toth, director of research at the Civitas Institute at the University of Texas, “EU leaders are flexing their muscle, not economically or militarily, but by setting standards that purport to regulate business activities around the world,” creating what he describes as, “significant leeway to relitigate American cases, when the result doesn’t conform to their values.”
It’s become crystal clear that the only winners here would be activist organizations, who break the law, and our global adversaries, who want nothing more than to see our energy dominance break down.
Energy demand is skyrocketing. America needs energy projects to come online, to prevent blackouts and cost jumps. Instead of supporting that, we are giving extremists a ticket to break the law and avoid the consequences. This is not an issue of free speech. This is an issue of holding lawbreakers accountable and ensuring America can protect its energy systems.
WAYNE CHRISTIAN has served as a member of the Railroad Commission of Texas since January 2017. Having been elected in November 2016 as the 50th Texas Railroad Commissioner, he is in the middle of his second six-year term. Since taking office, Commissioner Christian has been appointed by Governor Greg Abbott to the Interstate Oil and Gas Compact Commission (IOGCC) as the Official Representative of Texas. In 1996, Commissioner Christian was elected to the Texas House of Representatives as the first Republican elected from deep East Texas since Reconstruction after the Civil War. He went on to serve seven terms before winning his first term at the RRC in 2016. Commissioner Christian earned a BBA degree in general business from Stephen F. Austin State University in 1973.
