Environmental advocates have filed another challenge against Tellurian Inc.’s proposed Driftwood LNG project, this time in the form of a petition against the U.S. Army Corps of Engineers (USACE).

The Sierra Club and New Orleans-based advocacy group Healthy Gulf have filed a petition in the U.S. Court of Appeals for the Fifth Circuit asking for a review of permits granted to Tellurian. Specifically, the groups questioned a permit issued by USACE under the Clean Water Act that would allow Tellurian to fill and dredge wetlands in Southwest Louisiana during the construction of Driftwood.

Sierra Club’s Louisa Eberle, an attorney with the organization’s Beyond Dirty Fuels Campaign said the USACE failed to require Houston-based Tellurian to appropriately mitigate or avoid...