Phillips 66 Loses Suit Over User Fees on Gulf of Mexico Waterway

A Texas navigation district had statutory authority to charge energy companies fees to use the Sabine-Neches Waterway, which links Texas ports to the Gulf of Mexico, the Fifth Circuit said.

The waterway hadn’t been upgraded in 60 years and couldn’t accommodate today’s larger ships. The Sabine-Neches Navigation District therefore agreed to finance 40% of a $1.1 billion project to increase the depth of the waterway from 20 to 40 feet, with the US paying the other 60%, the court said.

Once the first part of the project was complete, the district started charging users a fee based on the tonnage ...