How Oregon’s Landmark Climate Lawsuit Adds Gas Utility to the Fight Against Fossil Fuel Deception

Oregon officials have intensified their legal battle against fossil fuel companies by adding the state’s largest natural gas utility, NW Natural, as a defendant in a sweeping $50 billion lawsuit. This lawsuit accuses major players in the fossil fuel industry of misleading the public about the dangerous environmental impacts of their products and contributing to the devastating consequences of climate change. NW Natural’s inclusion marks the first time a gas utility has been specifically targeted for alleged climate-related deception, setting a new precedent in the growing tide of climate lawsuits across the country.

The Expansion of Oregon’s Climate Lawsuit

The lawsuit, initially filed by Multnomah County in 2022, originally targeted major oil companies like ExxonMobil and Shell, accusing them of intentionally downplaying the dangers of burning fossil fuels. The amended complaint now includes NW Natural, alleging that the utility misled its customers about the contribution of natural gas to global warming while continuing to profit from fossil fuel sales. According to legal experts, this is the first time a gas utility has been accused of climate-related deception, further broadening the scope of accountability for companies involved in the fossil fuel industry.

Multnomah County, which includes Portland, filed the suit in response to the devastating climate impacts the region has experienced in recent years, including wildfires and the deadly 2021 heatwave that claimed the lives of at least 69 residents. The county argues that fossil fuel companies knew for decades about the severe risks their products posed to the environment but chose to mislead the public about the dangers.

Allegations of Climate Deception

The lawsuit accuses NW Natural and other defendants of knowingly engaging in a scheme to profit from fossil fuels while concealing the risks of climate change. According to the complaint, the companies had internal knowledge of global warming risks dating back to the 1950s. Instead of informing the public and taking action, the companies allegedly worked to undermine scientific findings and propagate misinformation about climate change, delaying meaningful efforts to address the crisis.

Alyssa Johl, vice president of legal at the Center for Climate Integrity, explained that gas utilities like NW Natural have been integral to historic deception campaigns aimed at misleading the public. Johl emphasized that the lawsuit marks a turning point in holding gas utilities accountable for their role in exacerbating the climate crisis. 

The Oregon lawsuit joins a growing list of legal actions by states, cities, and municipalities seeking to hold fossil fuel companies accountable for their role in the climate emergency. There are currently around two dozen similar lawsuits filed by state and local governments, but the inclusion of a gas utility is a significant new development.

NW Natural’s Response

NW Natural has responded to the lawsuit, stating that it has not yet received the complaint but is aware of its inclusion in the case. The company maintains that adding it to the lawsuit is a distraction from what it calls the legal and factual flaws in the case. NW Natural has expressed its intent to contest the claims vigorously if they proceed to court.

The utility’s statement reflects the position of many fossil fuel companies that have been sued over climate change. ExxonMobil, one of the original defendants, also denied the allegations, labeling them as “baseless” and “politically motivated.” The company defended its investments in lower-emission initiatives, noting that it plans to spend over $20 billion on such projects by 2027.

The Role of Other Defendants

In addition to NW Natural, the lawsuit includes other key players in the fossil fuel industry, including consulting giant McKinsey & Company and the Oregon Institute of Science and Medicine, a nonprofit research group accused of running misinformation campaigns funded by fossil fuel companies like ExxonMobil. McKinsey has yet to comment on its inclusion in the case, while Shell declined to respond.

The lawsuit argues that these companies are responsible for climate-related damages in Oregon, including more than $50 million in direct costs from wildfires, heat waves, and other natural disasters. The county seeks $50 billion in damages to fund climate adaptation projects, which are necessary to protect local communities from future climate impacts.

Legal Precedent and Challenges Ahead

Oregon’s lawsuit draws parallels to previous legal battles against the tobacco and opioid industries, where companies were accused of covering up the dangers of their products. Multnomah County Chair Jessica Vega Pederson highlighted the significance of these lawsuits in holding corporations accountable for their actions and securing financial settlements to address public harm.

“We’re already paying dearly in Multnomah County for our climate crisis with our tax dollars, with our health, and with our lives,” Vega Pederson said, emphasizing the urgent need for compensation to mitigate further damage.

The lawsuit is part of a broader effort by Democratic-led states and municipalities to hold fossil fuel companies accountable for their role in climate change. Similar cases have been filed in California, Minnesota, and Massachusetts, where legal experts predict the first climate change case may go to trial as early as next year.

However, these lawsuits face significant legal challenges, particularly from Republican-led states. In May 2024, Alabama and 18 other states asked the Supreme Court to block climate-related lawsuits filed by California, Rhode Island, and other states. These states argue that emissions disputes crossing state lines should be addressed in federal courts, not state courts, where plaintiffs are more likely to succeed.

The Road Ahead for Climate Accountability

Oregon’s lawsuit against NW Natural and other fossil fuel companies highlights the evolving legal strategies being used to combat climate change. By holding companies accountable for decades of climate deception, these lawsuits aim to secure compensation for the enormous costs of climate adaptation and to prompt meaningful action on emissions reduction.

While no climate change case has gone to trial yet, the mounting number of lawsuits reflects the growing urgency of the climate crisis and the increasing willingness of local governments to take legal action. With billions of dollars at stake, the outcome of these lawsuits could have far-reaching implications for the future of the fossil fuel industry and the global fight against climate change.

As the legal battles continue, the addition of NW Natural to Oregon’s lawsuit underscores the fact that no company involved in the fossil fuel supply chain is immune from accountability. The fight for climate justice is gaining momentum, and the road ahead promises to be a pivotal one for both the energy industry and the environment.