Litigation filed to stop Oklahoma Turnpike project, bond funding

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A recent lawsuit challenging an Oklahoma Turnpike Authority (OTA) project on environmental grounds, seeks to halt bond financing ahead of a proposed $1.5 billion debt issuance for a toll road expansion and improvement program.

Pike OFF OTA sued the turnpike and four federal agencies in U.S. District Court on June 23 over approvals and permits for an East-West Connector project — which includes a bridge over the Canadian River — contending federal environmental laws were violated.

"The lawsuit seeks to halt further construction and prevent additional bond funding until the required permits, environmental reviews and agency consultations have been completed," according to Amy Cerato, a Pike OFF OTA member.

OTA spokeswoman Lisa Shearer-Salim said on Monday the authority feels confident it is following the law and hired a third-party consultant to ensure the contractor remains in compliance with all environmental safeguards while construction is ongoing.

"OTA reviewed these claims in early February after receiving the notice of intent-to-sue letter," she said in an email. "We've been given no indication that there is any concern with the permitting process or our construction plans."

The litigation comes as OTA sought approval from the Oklahoma Council of Bond Oversight for $1.5 billion of second senior revenue bonds to continue financing for its Advancing and Connecting Communities and Economies Safely Statewide (ACCESS Oklahoma) program that includes the East-West Connector, as well as for a refunding of some outstanding debt. The oversight council was scheduled to take up the bond issuance at its June 25 meeting, which was cancelled, due to a lack of quorum.

OTA is evaluating its next steps regarding its bond application with the oversight council, according to Shearer-Salim. 

An objection to bond approval filed on June 24 by an attorney for Pike OFF OTA said the oversight council cannot "provide unconditional preliminary or final approval of a state agency's proposed bond issue so long as there is pending or threatened litigation related to proposed bond obligations."

The lawsuit "does not impede the council's authority to approve or deny OTA bonds as the (state) Supreme Court gave OTA authority to issue the bonds," according to a spokeswoman for the Oklahoma Treasurer's office, which includes the oversight council, which she said could take up the OTA bonds at its July 30 meeting.

The 15-year ACCESS Oklahoma program announced in February 2022 will widen existing toll roads and build new ones at a projected cost that has risen to $8.2 billion from an initial $5 billion.   

OTA sold $500 million of second senior revenue bonds in 2023, followed by a $1.11 billion deal in January 2025.  

Previous lawsuits against the program filed by property owners in the path of new toll roads were not successful and bills to reform OTA's practices, including capping its outstanding debt and requiring legislative approval for toll hikes, failed to advance in the Republican-controlled legislature.