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.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

UH study finds Gulf Coast best positioned for emerging carbon removal technology

coastal impact

The Gulf Coast is an ideal spot for deploying a new ocean-based carbon removal technology that uses seawater to capture and store carbon dioxide, according to a new study from the University of Houston.

The study was led by UH Cullen College of Engineering Professor Mim Rahimi and published in Nature’s Communications Sustainability journal. Abdelrahman Refaie, a PhD student at UH, authored the paper. It aimed to develop a plan for implementing an electrochemical marine carbon dioxide removal (e-mCDR) technology that treats seawater to increase the ocean’s ability to absorb and store carbon dioxide from the air.

Currently, oceans absorb about 30 percent of human-produced carbon dioxide emissions each year, according to UH, making it a great natural resource for carbon removal.

The team at UH scouted and analyzed 38 coastal facilities across the U.S.—including power plants, desalination plants, and liquefied natural gas (LNG) terminals—before determining the Gulf Coast as an attractive option. The South Hub, or the Gulf Coast along Texas and Louisiana, ranked the top-performing area for the technology due to the industrial infrastructure, affordable electricity, hydrogen transportation and storage networks.

Other regions like California and the Northeast also scored well due to their clean energy mix and carbon removal potential, according to UH.

“The South hub has one of the highest diversity factors between power plants, desalination and LNG,” Refaie said in a news release. “That means if, logistically, down the road LNG is not open for this implementation, then we have another option in the area. It reduces the risk factor.”

UH says the findings show how companies could commercialize the technology, which could boost coastal economies.

“The question we had wasn’t technical, rather, it was logistical in regard to implementation down the road,” Rahimi said. “This would be a roadmap if a company or the government wants to utilize this technology.”

Rahimi aims to increase awareness about e-mCDR technology and its potential impact. He recently discussed the ocean-centric carbon removal work with members of Congress in March at the Carbon to Sea’s 2026 Hill Day.

“I think faculty at the University of Houston can do more of this kind of work,” Rahimi said in a separate release. “Meeting with Members of Congress gives us a chance to help policymakers better understand the science and engineering happening at our university. That kind of engagement is an important part of moving new technologies forward. It also shows how the work we do on campus can have a real impact on communities beyond the university.”

Japanese company plans $357M solar manufacturing plant in Houston area

coming soon

Japanese solar manufacturing company TOYO Co. Ltd. plans to invest $357 million to bring a 1.5-gigwatt solar cell manufacturing facility to the Houston area.

TOYO’s latest state-of-the-art facility will be co-located at its existing solar module site in Humble, according to a news release from the company. It will produce heterojunction (HJT) solar cells, which are known to be more durable and efficient with a higher heat threshold.

TOYO reports that the new facility will create 400 full-time manufacturing jobs. The project is expected to be completed in 20 months, which includes an initial pilot production.

"Expanding into domestic cell manufacturing is the natural next step in our commitment to creating an integrated onshore solar supply chain from polysilicon to panels," Takahiko Onozuka, chairman and CEO of TOYO, said in the news release. "Co-locating 1.5 GW of HJT cell capacity at our Houston module site significantly optimizes our capital allocation and infrastructure spend.”

TOYO entered the Houston market in 2024 through its acquisition of a majority stake in Solar Plus Technology Texas LLC.

Earlier this year, it began producing solar modules at its 567,140-square-foot plant in Lovett Industrial’s Nexus North Logistics Park. At the time, the company said it planned to expand manufacturing capacity to 6.5 gigawatts.

"The new cell plant reflects TOYO's long-term strategy to build a fully FEOC-compliant domestic manufacturing platform focused on serving the needs of the U.S. utility-scale solar market," Rhone Resch, TOYO's chief strategy officer, added in the release. "By producing premium solar products in the United States, we will be well positioned to meet the market's evolving domestic content requirements while strengthening supply chain security and reliability. Looking ahead, we believe HJT is the optimal technology platform for integrating next-generation perovskite solar cells, which we expect will drive the next major advancement in solar conversion efficiency and support TOYO's long-term technology roadmap.”