“Everybody is afraid of these environmental groups and the fear that it may look wrong if you fight back with these people,” Warren said in a 2017 TV interview. “But what they did to us is wrong, and they’re gonna pay for it.”
The Texas Billionaire Who Has Greenpeace USA on the Verge of BankruptcyBenoit Morenne, September 8, The Wall Street Journal (subscription required)
Energy Transfer’s Kelcy Warren, a hypercompetitive mogul, is behind a lawsuit that could deal environmentalists a grievous blow
Fossil-fuel billionaire Kelcy Warren is about to land a knockout punch on Greenpeace.
The pipeline magnate’s company, Energy Transfer ET 0.13%increase; green up pointing triangle, is behind a lawsuit that Greenpeace says could bankrupt the environmental group’s U.S. affiliate. A courtroom victory, which some Greenpeace officials fear is likely, would be a coda in the nearly decadelong battle between the two sides over one of Warren’s signature projects: the Dakota Access Pipeline.
In 2016, Greenpeace, Native American tribal groups and thousands of other activists camped in a remote corner of North Dakota to block the project. The monthslong protests impeded the oil pipeline’s completion and became a flashpoint in the fight over fossil fuels. Images of sometimes violent confrontations between protesters and law enforcement made international news.
Warren ultimately completed the conduit, but the fight wasn’t over for him.
Warren sees green activists, who he once said should be “removed from the gene pool,” as a serious threat to the industry. Starting with protests of Keystone XL, which successfully derailed that project, activists have targeted pipelines across the country.
“Everybody is afraid of these environmental groups and the fear that it may look wrong if you fight back with these people,” Warren said in a 2017 TV interview. “But what they did to us is wrong, and they’re gonna pay for it.”
Now the pugnacious tycoon, who is valued at more than $7 billion, is within spitting distance of dealing a serious blow to Greenpeace—and the U.S. green movement.
Energy Transfer’s lawsuit alleges several Greenpeace entities incited the Dakota Access protests, funded attacks to damage the pipeline, and spread misinformation about the company and its project. The case is set for trial in February in a North Dakota state court, where both sides expect a fossil-fuel-friendly jury. Energy Transfer is seeking $300 million in damages, which would likely wipe out Greenpeace USA, according to the group’s leadership.
Deepa Padmanabha, Greenpeace USA’s acting co-executive director, said the lawsuit is “an existential threat” to the group.
In court papers, Greenpeace says it played a limited role in the protests, which it says were organized by Native American groups, and never took part in any property destruction or violence.
The litigation is unlikely to affect Greenpeace’s international operations. While the Greenpeace network’s coordinating body in the Netherlands is also a defendant, Energy Transfer may struggle to enforce any award against it because it doesn’t own assets in the U.S. But Greenpeace says losing its affiliate—and influence—in the U.S. would have a profound impact on the group’s ability to address climate change.
Environmental leaders fear the demise of Greenpeace USA would send a chilling message to their movement. Josh Galperin, an associate professor of law at Pace University, said that environmentalists have long recognized that they can choke off pipelines by challenging them on legal grounds. Now, some oil-and-gas companies are realizing they can use litigation to stop green activists.
Warren declined an interview request. “We support the rights of all Americans to lawfully protest and express their opinions,” an Energy Transfer spokeswoman said. “However, when it is not done in accordance with our laws, we have a legal system to deal with that.”