Archives: Exploration and Production

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Leave It to the States: Oklahoma Federal Court Dismisses Fracking Suit In Favor Of Administrative Regulation

On April 4, 2017, a federal district court dismissed a citizen-enforcement action under the Resource Conservation and Recovery Act that could have profound impact on fracking suits against the oil and gas industry. In Sierra Club v. Chesapeke Operating, LLC, the Sierra Club alleged that the deep injection of liquid waste from oil and gas … Continue Reading

A Summary of Professor Jim Rossi’s Lecture on the “Federalism Battles in Energy Transportation”

Professor Jim Rossi’s lecture on “Federalism Battles in Energy Transportation,” specifically whether the federal or state government is the proper authority to exercise its eminent domain and regulatory power. … Continue Reading

Louisiana Second Circuit Addresses: (1) Creation of Mineral Servitudes Via Notarial Acts of Correction; (2) Obstacles Suspending the Prescription of Nonuse from Running Against Mineral Servitudes; and (3) Payment of Court Costs in Concursus Actions

In Petro-Chem Operating Co., Inc. v. Flat River Farms, L.L.C., the Louisiana Second Circuit addressed issues affecting the creation and preservation of mineral servitudes and payment of court costs in a concursus action.[1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was … Continue Reading

Louisiana Supreme Court Denies Writ Application in XXI Oil & Gas v. Hilcorp

On March 24, 2017, the Louisiana Supreme Court declined to consider the Louisiana Third Circuit Court of Appeal’s decision in XXI Oil & Gas v. Hilcorp.[1] The Third Circuit’s decision involved the interpretation of Louisiana’s well cost reporting regime under La. R.S. 30:103.1-103.2 (collectively referred to herein as “the Statutes”) with respect to: (1) the … Continue Reading

Oregon Federal Court Issues Remarkable Decision Finding Constitutional Right to Stable Climate

Photo of a blue sky with white, fluffy cloudsOn November 10, 2016, Judge Ann Aiken, a federal district judge in Oregon, issued a remarkable environmental law decision in which she found that a climate system “capable of sustaining human life” is a fundamental constitutional right.[1] Juliana v. United States challenges the constitutionality of the United States’ decades-long policy on climate change.[2] The plaintiffs, … Continue Reading

Senator John Kennedy’s Letter to President Donald Trump: A First Step in Reviving the Oil & Gas Industry in Louisiana

Photo of an oil rig in the Gulf of Mexico, of the coast of LouisianaIn December of 2016, Republican John Kennedy won the United States Senate runoff election in Louisiana. On the campaign trail, Senator Kennedy promised to do his part in strengthening the declining oil and gas industry in Louisiana by easing restrictions imposed by the Obama Administration and fighting to bring back old jobs and create new … Continue Reading

Louisiana Third Circuit Addresses Payment of Royalties in Situations Involving Production Under a Mineral Lease Pursuant to a Conditional Allowable Prior to Unitization

In Gladney v. Anglo-Dutch Energy, L.L.C., the Third Circuit addressed the question of whether or not a mineral lessee must pay its lessor full lease-basis royalties for production undertaken during the effective period of a conditional allowable but prior to the effective date of a unit order.[1] In the case, the Plaintiffs granted a mineral … Continue Reading

EPA Publishes Proposed Renewables Enhancement and Growth Support Rule

On November 11, 2016, the EPA published a proposed rule designed to update its Renewable Fuel Standards Program and support the growth of renewable fuel use. With the stated goal of removing barriers to production and distribution of renewable fuels, the proposed rule has three main components: (1) Updated Regulatory Structure to Address Biofuel Processing at … Continue Reading

New Government Contractor “Blacklisting” Reporting Requirements Put on Hold

Hours before a controversial set of new reporting requirements for government contractors was set to take effect, a federal court in Texas enjoined implementation of the requirements across the country.… Continue Reading

Louisiana State and Federal Courts Split Over Parties Entitled to Reports Under La. R.S. 30:103.1

La. R.S. 30:103.1 requires operators or producers of oil and gas units created by the Louisiana Commissioner of Conservation to provide reports containing information related to well costs and production to owners of “unleased oil and gas interests” (referred to herein as “103.1 report(s)”). If an operator does not provide the information required under the … Continue Reading

Texas Supreme Court Agrees to Review Three Oil and Gas Cases in 2016

On September 2, 2016, the Texas Supreme Court agreed to review three oil and gas cases involving issues pertinent to the industry and land and mineral owners. BP America Production Company v. Red Deer Resources, LLC In BP America Production Company v. Red Deer Resources, LLC, the lessee of a top lease, Red Deer, sued … Continue Reading

Offshore Companies Face Surge in BSEE Enforcement Actions and Penalties

In recent years, offshore companies have witnessed a marked uptick in the number of enforcement actions undertaken by the Bureau of Safety and Environmental Enforcement (BSEE).[1]  Operators face more BSEE inspections, Incidents of Non-Compliance (INCs), and civil penalties than ever before.  Meanwhile, the average penalty amount has grown.  For example, in 2014 the agency imposed … Continue Reading

Louisiana Flooding – Legal Update

The Liskow & Lewis family stands by our friends and neighbors throughout the unprecedented flooding in our community. As we begin the long process of recovery, here is a brief legal update on the response of various courts and state agencies: State courts: Governor John Bel Edwards has issued an executive order which purports to suspend … Continue Reading

First Parish Coastal Zone Lawsuit to Proceed to Decision Falls for Failure to Exhaust Administrative Remedies

The first of 40 coastal permitting lawsuits to proceed to disposition has been dismissed for failure to exhaust administrative remedies. In a ruling released today, Judge Enright of the 24th JDC for Jefferson Parish dismissed The Parish of Jefferson v. Atlantic Richfield Company, finding that the statutory scheme at issue provided administrative channels to investigate and … Continue Reading

The Dusky Gopher Frog Causes Big Problems for Industrial and Commercial Development in Parts of St. Tammany Parish

In 2010, under the Endangered Species Act (“ESA”), the United States Fish and Wildlife Service (“the FWS”) designated 6,477 acres in Mississippi and Louisiana as “critical habitat” for the Rana sevosa or the dusky gopher frog.  This frog has historically lived in nine counties or parishes across Louisiana, Mississippi, and Alabama.  Since its 2001 designation … Continue Reading

BOEM Releases Long Awaited New Financial Assurance Notice to Lessees and Operators

The Bureau of Ocean Energy Management (BOEM) released its long awaited new Notice to Lessees and Operators (NTL) updating the procedures and criteria used to determine when and if additional supplemental financial assurance is required for an Outer Continental Shelf (OCS) lease, pipeline right-of-way, or right-of-use and easement.  New BOEM NTL No. 2016-N01, dated July … Continue Reading

Texas Supreme Court Rules Oil and Gas Producer Not Entitled to Sales Tax “Manufacturing Exemption”

On June 17, 2016, the Texas Supreme Court ruled that an oil and gas producer (“Southwest”) was not entitled to a statutory exemption from sales taxes on its purchases of casing, tubing and pumps used in the production of oil and gas (the “Equipment”). At issue in Southwest Royalties, Inc. v. Hegar was whether the … Continue Reading

Amendment to Louisiana’s Risk Fee Statute That Allows For Notices After Spudding Is Awaiting Governor’s Signature

Effective upon signature of the Governor, the Louisiana Legislature will have amended the Risk Fee Statute, La. Rev. Stat. Ann. § 30:10, which governs unit operations in the absence of a joint operating agreement.  The amendment is contained in Senate Bill No. 388, and would make the changes summarized below. Notices Allowed After Spudding Under … Continue Reading

Louisiana First Circuit Finds Appellate Jurisdiction Lacking, Declines to Address Merits of Appeal Involving Claims Related to Deepwater Horizon Response Operations

Louisiana First Circuit Court of Appeal again finds that it lacked jurisdiction over an appeal taken from a partial judgment that was not designated as final pursuant to Article 1915(B) of the Louisiana Code of Civil Procedure             In Constantin Land Trust v. BP America Prod. Co., et al., the Louisiana First Circuit Court of … Continue Reading

Regulating the Regulators: Supreme Court Allows Judicial Review of Clean Water Act Determinations

The United States Supreme Court recently addressed whether the United States Army Corps of Engineers’ determination that wetlands are “waters of the United States” constitutes a final agency action that is subject to judicial review under the Administrative Procedure Act in U.S. Army Corps of Engineers v. Hawkes Co., Inc., 15-290, 2016 WL 3041052 (U.S. … Continue Reading

New Judge, Same Result – $81 Million CWA Civil Penalty Appealed

U.S. District Court Judge Dee Drell (Western District, LA) recently denied a motion to alter or amend the Court’s judgment against CITGO Petroleum Corp.– allowing an $81 million judgment against the oil company to stand. The judgment is the latest in a suit the EPA filed against CITGO under the Clean Water Act for a … Continue Reading

Forum Shopping Curtailed: Venue Limited to Parish Where Drilling Rig Was Lost

In a May 4, 2016 opinion, Louisiana’s Third Circuit Court of Appeal made clear that venue was not proper in Concordia Parish—where plaintiff filed suit for damages resulting from the loss of its drilling rig in LaSalle Parish—because:  (1) the tortious conduct allegedly occurred and damages from the loss of the drilling rig were sustained … Continue Reading

Fracking Scores with Two Colorado Supreme Court Opinions

Hydraulic fracturing, or “fracking,” is a hotly debated topic in many states.  In New York and Pennsylvania, anti-fracking groups have obtained a statewide ban on fracking and the allowance of local authority to regulate fracking, respectively.  Texas, however, has enacted a state law expressly preempting local authority over a number of drilling activities.  In March … Continue Reading

Processor Required to Account For Diverted Volumes Used for Gas Lift

Generally, oil and gas production facilities have accounted for volume losses under the concept of “Fuel, Flare & Losses.” In a recent case, the Louisiana Fourth Circuit Court of Appeal held that processors must also account for gas volume diverted to gas lift operations. In Red Willow Offshore, LLC v. Palm Energy Offshore, LLC, the … Continue Reading
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