Posted on October 23, 2009 by Kelly Becker

Louisiana Supreme Court Holds that Act 136 of the Mineral Code is Inapplicable to Remediation Suits

By Matt Simone

In Broussard v. Hilcorp Energy Co., the Louisiana Supreme Court held that a plaintiff is not required, pursuant to Article 136 of the Louisiana Mineral Code, to provide a defendant with pre-suit written notice and an opportunity to perform prior to a judicial demand for property restoration related to oil and gas production contamination. Article 136 mandates these requirements for claims “arising from drainage of the property leased or from any other claim that the lessee has failed to develop and operate the property leased as a prudent operator….” The defendants argued that Article 136’s requirements should apply to any claim alleging that a lessee failed to act as a prudent operator. The court rejected the defendants’ position noting that the plain language of Article 136 is limited to claims regarding drainage of property or failure to develop and operate leased property. Since this case essentially involved a remediation/restoration claim, the court found that Article 136’s pre-suit requirements were inapplicable.

To read the case, go to http://www.lasc.org/news_releases/2009/2009-064.asp
 

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Posted on October 22, 2009 by Kelly Becker

Fifth Circuit Holds that Individual Citizens Have Standing to Sue Energy Companies for Global Warming

By April Rolen-Ogden

In Comer v. Murphy Oil, the Fifth Circuit left open the possibility that the oil and gas industry may be privately sued for alleged contributions to global warming. In this putative class action lawsuit, Plaintiffs claimed that the defendants’ operation of energy, fossil fuels, and chemical industries in the United States contributed to global warming. Plaintiffs further claimed that those contributions caused a rise in sea levels and added to the devastation wreaked by Hurricane Katrina, which destroyed Plaintiffs’ property and some public property. The Fifth Circuit concluded that Plaintiffs had standing for their nuisance, trespass and negligence claims, which were premised on the alleged causal link between global warming and Hurricane Katrina’s destruction of Plaintiffs’ property. The Fifth Circuit also held these claims were justiciable and thus ripe for determination by a court. Based on these findings, the Fifth Circuit reversed the District Court, which had dismissed Plaintiffs’ claims, and remanded for further proceedings.

To read further, please go to http://www.ca5.uscourts.gov/opinions/pub/07/07-60756-CV0.wpd.pdf
 

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Posted on October 5, 2009 by Kelly Becker

Fifth Circuit Royalty Decision Stands -- Supreme Court Denies Cert

The United States Supreme Court has denied the Petition for Certiorari filed by the United States Department of the Interior in Kerr-McGee Oil & Gas Corp. v. U.S. Dep't of the Interior, 554 F.3d 1082 (5th Cir. 2009). The high court's refusal to consider Interior's appeal allows the Fifth Circuit's January 2009 decision to stand.  

As explained in detail in the attached link (http://www.liskow.com/liskownewsletter/2009-01/newsletter.htm),  the Fifth Circuit held that the MMS had no authority to insert "price threshold" provisions into thousands of deep water Gulf of Mexico leases granted during the period 1996-2000.

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