Record $9.6M fine for Houston-based co. after Gulf of Mexico oil spill

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Third Stream has received a fine of $9.6 million. Photo courtesy of Third Stream

Pipeline safety regulators on Monday, January 5, assessed their largest fine ever against the company responsible for leaking 1.1 million gallons of oil into the Gulf off the coast of Louisiana in 2023. But the $9.6 million fine isn’t likely to be a major burden for Third Coast to pay.

This single fine is close to the normal total of $8 million to $10 million in all fines that the Pipeline and Hazardous Materials Safety Administration hands out each year. But Third Coast has a stake in some 1,900 miles of pipelines, and in September, the Houston-based company announced that it had secured a nearly $1 billion loan.

Pipeline Safety Trust Executive Director Bill Caram said this spill “resulted from a company-wide systemic failure, indicating the operator’s fundamental inability to implement pipeline safety regulations,” so the record fine is appropriate and welcome.

“However, even record fines often fail to be financially meaningful to pipeline operators. The proposed fine represents less than 3% of Third Coast Midstream’s estimated annual earnings,” Caram said. “True deterrence requires penalties that make noncompliance more expensive than compliance.”

The agency said Third Coast didn't establish proper emergency procedures, which is part of why the National Transportation Safety Board found that operators failed to shut down the pipeline for nearly 13 hours after their gauges first hinted at a problem. PHMSA also said the company didn't adequately assess the risks or properly maintain the 18-inch Main Pass Oil Gathering pipeline.

The agency said the company “failed to perform new integrity analyses or evaluations following changes in circumstances that identified new and elevated risk factors” for the pipeline.

That echoed what the NTSB said in its final report in June, that “Third Coast missed several opportunities to evaluate how geohazards may threaten the integrity of their pipeline. Information widely available within the industry suggested that land movement related to hurricane activity was a threat to pipelines.”

The NTSB said the leak off the coast of Louisiana was the result of underwater landslides, caused by hazards such as hurricanes, that Third Coast, the pipeline owner, failed to address despite the threats being well known in the industry.

A Third Coast spokesperson said the company has been working to address regulators' concerns about the leak, so it was taken aback by some of the details the agency included in its allegations and the size of the fine.

“After constructive engagement with PHMSA over the last two years, we were surprised to see aspects of the recent allegations that we believe are inaccurate and exceed established precedent. We will address these concerns with the agency moving forward," the company spokesperson said.

The amount of oil spilled in this incident was far less than the 2010 BP oil disaster, when 134 million gallons were released in the weeks following an oil rig explosion, but it could have been much smaller if workers in the Third Coast control room had acted more quickly, the NTSB said.

A barge hit a bridge in Galveston, resulting in an oil spill. No injuries were reported. Photo via portofgalveston.com

Barge hits bridge connecting Galveston and Pelican Island, causing partial collapse and oil spill

A barge slammed into a bridge pillar in Galveston, Texas, on Wednesday, spilling oil into waters near busy shipping channels and closing the only road to a small neighboring island. No injuries were reported.

The impact sent pieces of the bridge, which connects Galveston to Pelican Island, tumbling on top of the barge and shut down a stretch of waterway so crews could clean up the spill. The accident knocked one man off the vessel and into the water, but he was quickly recovered and was not injured, said Galveston County Sheriff’s Office Maj. Ray Nolen.

Ports along the Texas coast are hubs of international trade, but experts said the collision was unlikely to result in serious economic disruptions since it occurred in a lesser-used waterway. The island is on the opposite side of Galveston Island’s beaches that draw millions of tourists each year.

The accident happened shortly before 10 a.m. after a tugboat operator pushing two barges lost control of them, said David Flores, a bridge superintendent with the Galveston County Navigation District.

“The current was very bad, and the tide was high," Flores said. “He lost it.”

Pelican Island is only a few miles wide and is home to Texas A&M University at Galveston, a large shipyard and industrial facilities. Fewer than 200 people were on the campus when the collision happened, and all were eventually allowed to drive on the bridge to leave. The marine and maritime research institute said it plans to remain closed until at least Friday. Students who live on campus were allowed to remain there, but university officials warned those who live on campus and leave “should be prepared to remain off campus for an unknown period of time.”

The accident came weeks after a cargo ship crashed into a support column of the Francis Key Bridge in Baltimore on March 26, killing six construction workers.

The tugboat in Texas was pushing bunker barges, which are fuel barges for ships, Flores said. The barge, which is owned by Martin Petroleum, has a 30,000-gallon capacity, but it's not clear how much leaked into the bay, said Galveston County spokesperson Spencer Lewis. He said about 6.5 miles (10.5 kilometers) of the waterway were shut down because of the spill.

The affected area is miles away from the Gulf Intracoastal Waterway, which sees frequent barge traffic, and the Houston Ship Channel, a large shipping channel for ocean-going vessels. Aside from the environmental impact of the spill, the region is unlikely to see large economic disruption as a result of the accident, said Marcia Burns, a maritime transportation expert at the University of Houston

“Because Pelican Island is a smaller location, which is not in the heart of commercial events, then the impact is not as devastating," Burns said. “It’s a relatively smaller impact.”

At the bridge, a large piece of broken concrete and debris from the railroad hung over the side and on top of the barge that rammed into the passageway. Flores said the rail line only serves as protection for the structure and has never been used.

Opened in 1960, the Pelican Island Causeway Bridge was rated as “Poor” according to the Federal Highway Administration’s 2023 National Bridge Inventory released last June.

The overall rating of a bridge is based on whether the condition of any of its individual components — the deck, superstructure, substructure or culvert, if present — is rated poor or below.

In the case of the Pelican Island Causeway Bridge, inspectors rated the deck in “Satisfactory Condition,” the substructure in “Fair Condition” and the superstructure — or the component that absorbs the live traffic load — in “Poor Condition.”

The Texas Department of Transportation had been scheduled in the summer of 2025 to begin construction on a project to replace the bridge with a new one. The project was estimated to cost $194 million. In documents provided during a virtual public meeting last year, the department said the bridge has “reached the end of its design lifespan, and needs to be replaced.” The agency said it has spent over $12 million performing maintenance and repairs on the bridge in the past decade.

The bridge has one main steel span that measures 164 feet (50 meters), and federal data shows it was last inspected in December 2021. It’s unclear from the data if a state inspection took place after the Federal Highway Administration compiled the data.

The bridge had an average daily traffic figure of about 9,100 cars and trucks, according to a 2011 estimate.

___

Lozano reported from Houston. Associated Press reporters Christopher L. Keller in Albuquerque, New Mexico; Valerie Gonzalez in McAllen, Texas; Acacia Coronado in Austin, Texas; and Ken Miller in Oklahoma City contributed to this report.

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Houston researchers map data center growth, trends in new interactive platform

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Have you ever wondered why data centers are located where they are?

Energy experts at Rice University’s Center for Energy Studies (CES) have developed a tool to help answer that question.

Rice researchers at the CES, part of Rice’s Baker Institute for Public Policy, have created an interactive map to track data center growth and energy infrastructure in the United States.

Kenneth B. Medlock III, Miaomiao Rimmer, Anmol Mital and Beck Edwards developed the tool, known as the U.S. Data Centers and Infrastructure map. It aims to provide a comprehensive view of the factors shaping where data centers are located, from power and water costs to infrastructure, public policy and local sentiment.

“The map lets you see why data centers are being built where they are by connecting the dots between infrastructure, power costs, water availability, public policy and public sentiment across different regions,” Medlock, senior director at CES, said in a news release. “You can zoom out and look at the whole U.S. to easily realize why data centers locations are being chosen—the price of power and water matters.”

The tool maps information on data center locations against other factors like energy, water, economics and politics. It also shows existing infrastructure in the area, including electric transmission lines, power plants, and fiber-optic networks, and provides information on water stress, electricity prices and natural gas prices.

According to Rice, the map will be updated in real time and currently includes information on existing data centers and proposed data centers.

Additionally, the map provides county-level analyses of news coverage and media to explore local attitudes towards the development of data centers in communities. Users can also explore political and demographic information.

According to the Pew Research Center, most data centers that are being built will appear in rural areas, with Virginia, Texas and Georgia leading the way in the number of planned facilities. Pew’s 2026 findings also noted that 38 percent of Americans live within 5 miles of at least one operational data center.

Meanwhile, Houston and Texas are poised for continued data center growth. Other reports predict that Houston’s data center capacity could more than double by 2028. Texas is home to an estimated 400-plus data centers, according to commercial real estate services provider CBRE.

UH team lands $2.9M DOE grant to develop next-gen magnets with AI

critical minerals

University of Houston researchers are leading an effort to find alternatives to a key element of the U.S. economy.

A UH-led coalition is exploring the use of AI to design and manufacture next-generation permanent magnets for the energy and industrial sectors. The project seeks to develop new, more sustainable magnets that reduce U.S. reliance on vulnerable foreign sources of critical minerals, primarily China.

A nearly $2.9 million grant from the U.S. Department of Energy supports the work.

“Rare earth elements, critical minerals, and magnets are indispensable to American energy, industry, and national security,” Conner Prochaska, director of the Advanced Research Projects Agency–Energy, said in a news release. “These projects will accelerate domestic mineral discovery and develop ultra-powerful magnets to mobilize U.S. critical mineral reserves, safeguard supply chains, and protect American energy and economic interests.”

Over the three-year grant period, principal investigator Jakoah Brgoch, a chemistry professor at UH, will head the Guided AI for Magnetic Boride/Carbide Intermetallic Technologies (GAMBIT) project. Brgosh was one of seven new senior members from UH named to the National Academy of Inventors earlier this year.

Other members of the team include Joshua Bocarsly, an assistant professor in the UH chemistry department; scientists at Rice University; and Houston-based startup Newfound Materials, which occupies space at Greentown Labs.

The UH-led team aims to surpass the properties of neodymium iron boron, the current industry-standard material for high-performance permanent magnets. These magnets are vital components in electric vehicles, industrial motors, generators, electronics and other advanced technologies.

“Strong magnets are used all over our economy. For example, many modern air-conditioning systems rely on permanent-magnet motors to drive compressors and blower fans,” Brgoch said.

“This has been a longstanding challenge to think about how we replace these magnets with high-performing and more reliable materials, and optimization by just replacing elements is not working,” Brgoch added. “Our goal is to use AI to find entirely new materials while simultaneously balancing these supply constraint concerns.”

The research team will work on discovering and testing potential magnet replacements. According to UH, the project’s ultimate goal is to commercialize the magnets through a new startup or by expanding Newfound Materials’ business units. The local startup has developed a predictive engine for materials research and development.

10 can't-miss events at Houston Energy and Climate Week 2026

where to be

Editor's note: Houston Energy and Climate Week returns for its third year, Sept. 12–18, with panels, happy hours, pitch days and tours focused on the energy transition.

The Ion District will host many of the week's events. Here are details on some can't-miss, signature events and how to register. Find the full schedule here. Please note: this article may be updated to add more events.

Sept. 13 — The & Awards

Kick off the week by celebrating Houston honorees leading the future of energy at the & Awards. The & Awards will honor Zay Zeidman, chairman of Houston First and managing partner of Altitude Ventures; The University of Houston's Renu Khator and Ramanan Krishnamoorti; Maryanne Maldonado, CEO of the World Affairs Council; and Fervo Energy co-founders Tim Latimer (CEO) and Jack Norbeck (CTO). The inaugural posthumous Lifetime Ambassador Award will honor former Houston Mayor Sylvester Turner, and this year’s Allies in Energy grant recipients will also be recognized. The evening will include a fireside chat, an immersive gallery, live music, passed hors d'oeuvres, Champagne and plenty of networking opportunities.

This event is Sunday, Sept. 13, from 6-9 p.m. at ARTECHOUSE Houston. Register here.

Sept. 14 — Brews on the Bayou

Head to Saint Arnold Brewery for a more laid-back kickoff event. Grab a beer and take in a live conversation with Paul Hobby, managing director of Genesis Park, and Katie Mehnert, CEO of The Bee Suite and co-founder of HECW. Rice University's Aaron Pomerantz will moderate the discussion. Then hear a live performance from AY Young.

This event is Monday, Sept. 14, from 6-9 p.m. at Saint Arnold Brewery. Register here.

Sept. 14–18 — Sip For Sustainability

Enjoy a signature cocktail at five H Town Restaurant Group spots each night of Houston Energy and Climate Week. A portion of every purchase will go toward Allies in Energy, which supports education, collaboration, and community programs that drive a more sustainable future. Participating eateries include Hugo's, Xochi, Uber, Zaranda and Caracol.

These events begin Monday, Sept. 14, from 3-5 p.m. Find more information on each day's happy hour here.

Sept. 15 — HTX Tech Tours

HECW will present two Tech Tours this year, offering attendees a closer look at the region's climatech scene. The Metro Innovation Tour & Market will visit Sugar Land Town Square, Shell Technology Center Houston, SLB West Houston Campus, University of Houston at Sugar Land, Ambrosia Space, NanoTech Materials and Syzygy Plasmonics. The Bay City South Innovation Tour will visit Sugar Land Town Square and Erthos Project Bravo in Matagorda County. Both tours will head to Astros Night at Daikin Park to wrap up the day.

These events are Tuesday, Sept. 15. Find more information here.

Sept. 15 — Meet the Activate Houston Cohort 2026 Fellows

Meet Activate's latest cohort, which was named this summer, and learn more about their hardtech and climate-focused solutions. Also meet founders from the organization’s 2025 cohort during Houston Energy and Climate Startup Week.

This event is Tuesday, Sept. 15, from 5-7 p.m. at the Ion. Register here.

Sept. 15 – Cypher Pilotathon and Startup Showcase

Grab coffee and take in keynotes and panels featuring leaders from Amperon, Aramco Ventures, New Climate Ventures, Syzygy Plasmonics and many others during this signature event, this year under the theme “The NEW Energy Industrial Revolution.” After lunch, hear pitches from 31 ventures during the Pilotathon. This year's event will also feature a startup showcase with interactive booths where attendees can meet founders and see demonstrations, plus an industry hub where corporates and investors can engage with emerging technologies and identify the pilots they want to move forward with.

This event is Tuesday, Sept. 15, from 9 a.m.-5 p.m. at POST Houston. Get tickets here.

Sept. 15 — Houston Astros Energy Night

Catch a game and chat with fellow clean energy enthusiasts during Houston Astros Energy Night. The 'Stros take on the Kansas City Royals. A bonus? Dollar Hot Dog Night at Daikin Park.

This event is Tuesday, Sept. 15, starting at 7:10 p.m. at Daikin Park. Get tickets here.

Sept. 16 — Greentown Labs Climatech Summit

Entrepreneurs, investors, corporate leaders, policymakers and philanthropists will head to Houston this month for the annual Greentown Climatetech Summit. Hear from Greentown CEO Georgina Campbell Flatter and keynote speaker Tim Latimer, CEO and co-founder of Houston geothermal unicorn Fervo Energy, plus numerous other engaging panels at the Ion. Then head to Greentown Labs for an open house and startup showcase, where attendees can meet some of the climatech incubators' members, before taking in the startup pitch competition followed by happy hour over at the Continental Club.

This event is Wednesday, Sept. 16, from 8 a.m.–9 p.m. at multiple locations. Register here.

Sept. 17 — Rice Alliance Energy Tech Venture Forum

Hear from clean energy startups from around the world at the 23rd annual Energy Tech Venture Forum. In addition to the pitches, this event will also host keynotes from Sean Maher, chief economist at Phillips 66, and Ira Ehrenpreis, founder and managing partner of DBL Partner. Panels will focus on technologies, infrastructure and commercialization strategies needed to deploy breakthrough innovations at scale. Following the event, the Rice Alliance will also name its annual “Most Promising” startup.

This event is Thursday, Sept. 17, from 7:30 a.m.-5 p.m. at Rice University’s Jones Graduate School of Business. Register here.

Sept. 18 — Halliburton Labs Finalists Pitch Day

Hear from Halliburton Labs' latest cohort of entrepreneurs. The incubator aims to advance the companies’ commercialization with support from Halliburton's network, facilities and financing opportunities. Its latest cohort includes one company from Texas.

This event is Friday, Sept. 18, from 8 a.m.-noon at The Ion. Register here.

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