A potential obstacle to construct the proposed Rio Grande and Texas LNG facilities in South Texas has been cleared after an appellate court upheld a decision to dismiss a lawsuit over leases.

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The Thirteenth Court of Appeals, which serves the South Texas area, ruled that a trial court correctly dismissed a case against the Brownsville Navigation District. The district had lease agreements with several liquefied natural gas export terminal developers (No. 13-20-00479-CV). The lawsuit was filed in 2020 by the City of Port Isabel, adjacent to Brownsville, and city officials.

The appeals court also agreed that the plaintiffs’ arguments that the projects were approved without a sufficient environmental analysis were “attempts to use artful pleading” to circumvent Federal Energy...