Tulsa Sued Railroad Over Butane Facility
The City of Tulsa initiated legal action in April 2024 to block a butane transloading operation near East Independence Street.
Updated on Sept. 29, 2026 in Utilities
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In April 2024, the City of Tulsa filed a lawsuit against South Kansas & Oklahoma Railroad and Centennial Energy to halt a butane transloading operation. The city alleges the facility violates local zoning codes.
Why it matters
The dispute centers on whether the city has regulatory authority over the facility or if the site is subject to federal law as part of railroad transportation. A resolution will determine if the site remains open or if operations must cease.
The city received a 31-page expert report regarding its regulatory authority over the facility. Some butane is currently being transported by truck to a site in Cushing, 50 miles away.
The players
South Kansas & Oklahoma Railroad
This railway company is a defendant in the lawsuit and argues that its operations are governed by federal law rather than city zoning.
Centennial Energy
The company operates the transloading facility and maintains that its activities fall under federal transportation jurisdiction.
G.T. Bynum
He served as the Mayor of Tulsa and was contacted regarding safety concerns at the rail site in 2017.
The details
The facility transloads butane from railcars to semitrucks near East Independence Street and North Lansing Avenue, a location near the USA BMX National Headquarters that opened in 2022. Both sides have filed motions for summary judgment, and the city has prevailed on two initial procedural issues while the case remains in discovery.
Timeline
Fred Storer first raised safety concerns regarding the site with the mayor in 2017.
The USA BMX National Headquarters opened in the area in 2022.
The City of Tulsa filed its lawsuit against the companies in April 2024.
Market Landscape
The lawsuit tests the boundaries of federal preemption in limiting local zoning authority for rail-adjacent industrial operations. This conflict highlights the ongoing tension between municipal land-use oversight and the regulatory protections afforded to interstate rail infrastructure.
Residents in the area near East Independence Street and North Lansing Avenue face uncertainty regarding long-term industrial activity at the site. The outcome of the court ruling will determine if the transloading operation is permanently shuttered or permitted to continue.
The takeaway
This case underscores the complex legal challenges cities face when attempting to enforce zoning in areas occupied by interstate transportation infrastructure. Residents concerned about industrial safety near public spaces should monitor court proceedings for updates on local zoning authority.
Further reading
Learn more about local regulatory disputes in the Utilities section.
Source note: This article includes information reported by Fox23.
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