San Juan pilots sue NFE over LNG tug safety dispute
A group of San Juan Bay pilots and their association have filed a federal complaint against NFEnergía LLC, a subsidiary of New Fortress Energy, and the Puerto Rico Pilotage Commission, seeking injunctive relief over what they call a breach of contract, unsafe maritime practices and unconstitutional efforts to silence them.
In a 34-page complaint, the plaintiffs — Tomas Busto, Carlos E. Ramos, Ray Díaz, Jacob Elmstrom, Richard Flynn, Carlos Gutiérrez and Patrick López, along with the San Juan Bay Pilots Corp. — contend that NFEnergía is attempting to cut costs “at the expense of safety” by replacing four 80-metric-ton escort-rated tugs with lower-capacity equipment.
The pilots argue that the contracted tugs were secured after nearly two years of technical simulations, consultations and training to safely maneuver liquefied natural gas (LNG) vessels through the narrow and complex channels of San Juan Bay.
“At the heart of the plan was the use of four 80-ton escort-rated tugs, which plaintiffs and NFE had agreed were necessary for maneuvers,” the filing states.
The complaint, filed Aug. 31 in the U.S. District Court for the District of Puerto Rico, says that since March, 18 LNG maneuvers have been carried out with the designated tug configuration, including a July 12 emergency operation requiring a 180-degree turn to remove a vessel from the bay.
Plaintiffs said the maneuver was completed safely “only because the proper equipment was in place and because the personnel involved had received specific training.”
The dispute escalated in July when NFE confirmed plans to replace the contracted Edison Chouest Offshore tugs with vessels from McAllister Towing and Moran Towing. Seven of the eight San Juan Bay pilots objected in writing, citing safety concerns, while one pilot, Daniel Montes, agreed to proceed with the replacement equipment.
On Aug. 15, the acting president of the Puerto Rico Pilotage Commission, Jessica Ñeco-Morales, issued a cease-and-desist order to the seven dissenting pilots, forbidding them from raising concerns with industry stakeholders and threatening referral to the Justice Department. The plaintiffs allege the order was issued unilaterally, without a vote from the other commissioners, and violated Act 226 and constitutional protections.
“The Commission’s role is to protect the public interest, ensure that the practice of pilotage is performed according to the highest safety standards, keep it free from all economic influence, and never place the financial interests of any company above the safety of the People of Puerto Rico,” the complaint states.
The filing also claims that the commission’s actions have created a “chilling effect” on pilots, undermining their ability to exercise professional judgment free from political and economic pressure.
The plaintiffs argue that safety must remain the guiding principle of pilotage, citing Article 226, which recognizes a pilot’s right to refuse a maneuver “for security reasons that prevent it from doing so.”
The lawsuit seeks preliminary and permanent injunctions to prevent NFE from withdrawing the 80-metric-ton tugs until any replacement equipment is proven through simulations to meet equivalent safety standards. It also asks the court to declare the cease-and-desist order null and void, affirm the San Juan Bay Pilots Corp.’s entitlement to pilotage fees, and award damages for loss of income.
“Performing such operations with vessels roughly five times larger than those used by NFE two years ago substantially increases the risks,” the complaint states.
The plaintiffs argue that any disruption or accident in San Juan Bay, which handles most of Puerto Rico’s imports, would have “grave repercussions” for the island’s economy and public safety.
The case is before U.S. District Court Judge Silvia L. Carreño-Coll.
