The plight of the oil region, Niger Delta is multifaceted and severe. Daunted in these challenges are crisis of environmental degradation and restive conflicts. In Bayelsa, the resentment remain loud and torrential in oil producing communities underscoring the expediency of alternative conflict resolution efforts for peace and social justice as state intervention mechanisms remain inactive or deficient. Acknowledging these unpleasant scenarios, this paper examined the pertinence of Alternative Dispute Resolution in the crisis of environmental degradation and search for social justice in oil producing communities in Bayelsa state. In an exploratory design, the discourse established that the crisis of environmental degradation reflected in contamination of air, land and rivers from oil spills and gas flaring in communities of Nembe, Ogbia, Brass, Southern Ijaw etc which consequently created hostilities against oil installations, operational activities and personnel.This paper therefore proposes the functionality of ADR as a viable mechanism of peace, social justice and development in volatile oil communities and further recommend for strict enforcement of environmental standards, swift response in prevention among the fundamentals to stem the tides of environmental degradation in oil producing communities in Bayelsa state.