March 19 (Reuters) - Greenpeace must pay a Texas-based

pipeline company nearly $667 million in damages for the

environmental advocacy group's role in 2016-2017 protests

against the Dakota Access Pipeline in North Dakota, a jury said

Wednesday.

The verdict in North Dakota state court came after two days

of deliberations in a trial where pipeline company Energy

Transfer ( ET ) accused Greenpeace of paying protesters to disrupt

construction of the pipeline unlawfully and spreading falsehoods

about the controversial project, located near the Standing Rock

Indian Reservation.

The verdict included damages for defamation, trespassing and

conspiracy. The jury awarded more than $400 million in punitive

damages, which are intended to punish defendants for their

conduct.

Greenpeace denied wrongdoing and called the case an attack

on free speech rights. The group's lawyers said they would

appeal Wednesday's verdict.

"We're an advocacy group. We engage in peaceful protest,"

said Greenpeace attorney Deepa Padmanabha, asserting that the

group only played a minor role in the demonstrations.

Energy Transfer ( ET ) lawyer Trey Cox said in a statement that

Greenpeace's "violent and destructive" protests were not legally

protected speech.

"Today, the jury delivered a resounding verdict, declaring

Greenpeace's actions wrong, unlawful, and unacceptable by

societal standards. It is a day of reckoning and accountability

for Greenpeace," Cox said.

Construction of the pipeline was met with fierce protests by

environmental and tribal advocacy groups who said the project

would poison local water supply and exacerbate climate change.

The project began in 2016 and was completed the following

year. The pipeline transports roughly 40% of the oil produced in

North Dakota's Bakken region.