A federal appeals court on Friday rejected a lawsuit by the owners of the natural-gas Constitution Pipeline challenging the state’s decision last year not to grant the water permits needed to build the pipeline.

The Constitution Pipeline Co. sued the state in May 2016, seeking to overturn a decision by the Department of Environmental Conservation to deny the company a water permit for the 121-mile pipeline. But the U.S. Court of Appeals for the Second Circuit on Friday sided with the state, arguing that the agency had the right to approve or reject the permit.


Judge Kearse