Tulsa Sues Centennial Energy Over Butane Operations
The city alleges that local butane transloading activities violate existing zoning codes and pose safety risks.
Updated on Oct. 20, 2026 in Oil and Gas
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In April 2024, the City of Tulsa filed a lawsuit against Centennial Energy, claiming its butane transloading facility violates local zoning regulations. The legal action follows ongoing concerns from residents and city officials regarding the proximity of the facility to public spaces.
Why it matters
The dispute centers on the potential for industrial accidents, as the facility lies within range of the USA BMX National headquarters and residential neighborhoods. Both the city and local residents are seeking to address safety fears involving the transportation of volatile chemicals.
A community-funded expert produced a 31-page report detailing safety concerns, while the butane transloading facility maintains an EPA-filed report estimating a potential explosion impact radius of nearly half a mile.
The players
Centennial Energy
The energy company operates the butane transloading facility and contends that federal law preempts local zoning ordinances.
GT Bynum
He serves as the Mayor of Tulsa and has been involved in communications regarding the facility's operations since at least 2017.
The details
Railcars currently transport butane to the facility for transfer onto semitrucks, a process that Centennial Energy argues is governed by federal railroad law rather than municipal zoning. While the city has prevailed on two initial procedural issues, it has not sought an injunction to halt operations during the ongoing litigation.
Timeline
2017: Fred Storer sent a letter regarding the facility to Mayor GT Bynum.
2022: The USA BMX National headquarters opened near the transloading site.
2022: City officials stated that transport was a federal regulatory issue.
April 2024: The City of Tulsa filed a lawsuit in Tulsa County District Court.
Market Landscape
This litigation highlights the recurring conflict between municipal land-use authority and federal rail preemption of local zoning regulations. The outcome may set a precedent for how energy companies navigate local ordinances when operating rail-adjacent facilities.
The lawsuit currently does not restrict daily operations, meaning local residents and businesses near the facility will see no change in traffic or activity levels. If the city prevails in court, potential future zoning changes could impact how hazardous materials are handled within city limits.
The takeaway
This case underscores the challenges municipalities face when balancing industrial operations with residential safety and urban development. Residents interested in similar land-use issues can monitor court filings for future updates on the trial status.
Further reading
For more on industry oversight and regional operations, see the Oil and Gas section.
Source note: This article includes information reported by Fox23.
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