We are now seeing the Louisiana legislature address some of these uncertainties head on with Senate Bill 285, which was filed on March 1, 2024 by Louisiana senator Stewart Cathey, Jr. Namely, SB285 would grant authority to the Office of Conservation to establish units for brine production. Furthermore, the proposed legislation would revise the Mineral Code to expressly include brine among the substances to which the Mineral Code applies.
Continue Reading Proposed Brine Legislation May Pave the Way for Louisiana Lithium Projects
Louisiana Mineral Law
Louisiana State Mineral Board to Consider Retaining Third Party Counsel to Pursue Underpayment of Royalty Claims Associated with Natural Gas Production on State Lands and Waterbottoms
Louisiana State Mineral and Energy Board to Consider Retaining Outside Counsel to Pursue Claims Against Louisiana Mineral Lessees and Well Operators for Failure to Correctly or Timely Pay Royalties. …
Continue Reading Louisiana State Mineral Board to Consider Retaining Third Party Counsel to Pursue Underpayment of Royalty Claims Associated with Natural Gas Production on State Lands and Waterbottoms
The Smackover Formation: Unveiling the Lithium Potential
The pursuit of alternative energy sources has become increasingly important in our quest for a sustainable future. Lithium, a key component in rechargeable batteries, has emerged as a vital element for powering electric vehicles and storing renewable energy. The rising demand for lithium, combined with Federal tax credits for lithium production, has intensified lithium exploration…
Louisiana Legislature to Consider Amendments to Forced Pooling Regime Requiring Operators to Pay Lessors of Nonparticipating Working Interest Owners Directly
On Friday, March 31, 2023, Representative Larry Bagley of Louisiana’s District 7 proposed amendments to Louisiana Revised Statutes § 30:10. The bill, HB 590, extends a prior substantive change in the law that was affected by the 2012 amendments to La. R.S. 30:10. In the 2012 amendment, operators of force-pooled drilling units were required…
Louisiana Senator Proposes Statutory Framework Governing Rights and Obligations of Parties to Renewable Energy Leases
The Louisiana Legislature’s 2023 Regular Session begins on April 10th, and last Friday, Louisiana Senator Allain of District 21 filed SB 154 proposing to enact a statutory framework directly governing the rights and obligations of parties to renewable energy leases.
The bill defines a “renewable energy lease” as a lease entered into for the purpose…
Lithium Extraction May Soon Turn Produced Water Into Produced Profits
As a key component of most batteries, lithium is ubiquitous in our daily lives. From the moment your alarm on your cell phone goes off in the morning, to using your battery-powered toothbrush, to reading this blog post on your laptop or tablet, lithium makes it all work. Thus, it shouldn’t surprise you to hear…
The Western District of Louisiana Holds that the Federal Energy Regulatory Commission’s Shipper Must Have Title Policy Creates No Private Right of Action
In a unique twist on a common challenge to the deductibility of post-production expenses, plaintiffs in Grayson L.L.C. (Of Louisiana), et al. v. BPX Operating Co., et al. sued the unit operator for breach of contract to recover transportation costs incurred as a result of alleged regulatory violations of the Federal Energy Regulatory Commission’s (“FERC”)…
Future Of Federal Offshore Oil And Gas Leasing: Department Of Interior Releases Proposed Five-Year Program For 2023-2028
Last week, the U.S. Department of the Interior released its proposed Outer Continental Shelf (OCS) five-year program for offshore oil and gas leasing. The Outer Continental Shelf Lands Act (OCSLA) requires the Secretary of the Department of the Interior to “prepare and periodically revise and maintain an oil and gas leasing program” (i.e., a five-year…
New Amendment to Louisiana’s Geologic Sequestration of Carbon Dioxide Act Creates Expropriation Rights to Prohibit Drilling through Carbon Capture Storage Reservoirs in Caldwell Parish
In response to various pressures on the energy industry to reduce the environmental impact associated with excess carbon dioxide emissions, many energy companies are investigating carbon capture and sequestration projects as a means of reducing their carbon emissions. In addition to reducing carbon emissions, carbon capture and sequestration projects often qualify for valuable income tax…
Long-Awaited Victory on the Proper Deductibility of Post-Production Costs from Unleased Mineral Owners – The Western District of Louisiana Reverses Course in Johnson v. Chesapeake and Self v. BPX
For nearly three years, unit operators in Louisiana have waited to see whether the Western District of Louisiana would change course or double down on its March 2019 decision in Johnson v. Chesapeake. In the original Johnson decision, the district court sent shockwaves across the oil and gas industry in Louisiana by finding that post-production costs were not properly deductible against proceeds owed to unleased mineral owners. In the wake of that decision, at least two putative class actions were filed against the largest producers in the Haynesville Shale, and operators have been flooded with demands and suits from unleased owners who relied on Johnson to contest the validity of post-production cost decisions from unleased interests.
Continue Reading Long-Awaited Victory on the Proper Deductibility of Post-Production Costs from Unleased Mineral Owners – The Western District of Louisiana Reverses Course in Johnson v. Chesapeake and Self v. BPX