Asked to define the phrase Energy Transfer, most people would say it sounds like something they dimly recall from high school physics. Actually, it is the name of a giant corporation that owns the country’s largest petroleum transportation system, including the Dakota Access Pipeline (DAPL), which was the focus of intense protests in 2016.
Energy Transfer and DAPL are back in the news because a trial is set to begin in the latest phase of the company’s legal assault against opponents of the pipeline. Despite the protests led by the Standing Rock Sioux Tribe and other indigenous groups, the pipeline was completed and went into operation in 2017. That was in large part due to the intervention of the Trump Administration in one of its first acts. Energy Transfer CEO Kelcy Warren was a big contributor to Trump during the 2016 presidential race. This year he gave $5 million to a pro-Trump Super PAC.
Although it won the battle to build DAPL, Energy Transfer has been on a crusade against its adversaries. Initially, it targeted Standing Rock Sioux chairman Dave Archambault and other tribal leaders at the center of the protests. When that failed, it went after Greenpeace and has not relented. In doing so, it has mounted one of the most aggressive examples of what are known as SLAPP suits (strategic lawsuits against public participation)—legal actions meant to intimidate anti-corporate protests.
In 2017 Energy Transfer filed a federal racketeering suit against Greenpeace that made extravagant allegations that tried to depict the group’s legitimate criticisms of the company and DAPL as a violent criminal conspiracy. The complaint accused Greenpeace of “manufacturing a media spectacle based upon phony but emotionally charged hot-button issues, sensational lies, and intentionally incited physical violence, property destruction, and other criminal conduct.”
Greenpeace vehemently denied advocating or engaging in any violent acts, while also insisting it did not organize the protests but was simply supporting a campaign led by tribal groups. A federal judge threw out the racketeering case, but Energy Transfer has continued to pursue the matter at the state level and is seeking $300 million in damages.
The North Dakota complaint filed in 2019 employs much of the same overheated rhetoric as the unsuccessful federal action. It accuses Greenpeace and several co-defendants of pursuing an “extremist agenda — to attack and disrupt Energy Transfer’s business and its construction of DAPL — through means far outside the bounds of democratic political action, protest, and peaceful, legally protected expression of dissent.”
Yet the company focuses a great deal on such expressions of dissent, alleging that the defendants “engaged in large-scale, intentional dissemination of misinformation and outright falsehoods regarding Energy Transfer, DAPL’s environmental impact, and Energy Transfer’s extensive efforts to address the concerns of local North Dakota communities.”
It is language such as this that prompts Greenpeace to argue that the case represents a serious threat to First Amendment rights. If Energy Transfer is successful in pushing the idea that those criticizing its actions are guilty of defamation, that would indeed have a chilling effect on corporate accountability activism.
As Greenpeace points out, there is a lot to criticize about Energy Transfer even apart from DAPL. In Violation Tracker we document 383 instances since 2000 in which the company and its subsidiaries were fined or reached settlements in cases involving environmental, safety or other infractions. The associated penalties amount to $611 million.
Five of these cases were brought as criminal matters. These include a 2022 case brought by then-Pennsylvania Attorney General Josh Shapiro in which two Energy Transfer subsidiaries pleaded no contest to criminal water pollution charges relating to the release of large quantities of drilling fluids containing potentially hazardous substances in places where it could contaminate drinking water supplies. AG Shapiro stated that in bringing the case his office was “holding Energy Transfer accountable for their crimes against our natural resources.”
It is unclear whether Energy Transfer really believes the lawsuit will silence its critics. For its part, Greenpeace shows no sign of being intimidated and is defending itself forcefully, which is in keeping with its long track record of standing up to the powerful. Energy Transfer may have SLAPPed, but Greenpeace is slapping back.
For more details on the lawsuit, see this website just launched by Greenpeace.