According to documents obtained by CNBC, the US Army Corps of Engineers withdrew its application to expand launch facilities in Boca Chica, Texas, after the company failed to provide environmental information the agency requested.
In order to support its existing launch vehicle operations in the South Texas facility, the company was seeking approvals to build a new launch pad, landing pad, and other launch related infrastructure.
Wetlands and mud flats would have been part of the expansion.
Section 404 of the Clean Water Act requires the Army Corps of Engineers to oversee the development of wetlands. In this role, the Corps makes sure that developers don't harm natural resources and drinking water, and that alternative sites or approaches can be used instead.
The US Army Corps of Engineers sent a letter to Musk's venture in March of 2022, saying that it had failed to say how it might be able to build its facilities differently, or whether it could locate them elsewhere. The withdrawal was previously reported by Bloomberg.
The agency noted that on February 10, 2022, Musk held a press conference where he explained that if regulatory approvals didn't move along in Texas, he would move a lot of the company's operations.
Musk said at the time that he would turn the Boca Chica assets into a research and development hub.
If it still wants to pursue the vertical launch area expansion, the Corps could re-instate its application. The Corps did not respond to requests for comment on whether or not the requested information has been received. A request for comment from the company was not immediately responded to.
The U.S. Fish and Wildlife Service has expressed similar concerns, as reported by an environmental engineer who writes under the handle ESG Hound. The Federal Aviation Administration received comments from FWS saying that the environmental information provided by SpaceX was insufficient to get approval to expand in Boca Chica.
The next major step for the company is to reach space. The company is working on a mission to Mars. The company's Starship progress was delayed on multiple fronts last year, and an orbital flight test is currently pending regulatory approval.
The flight test needs a license from the FAA and a separate environmental assessment is still pending.
The letter is here.
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