Archives: Louisiana Oil & Gas Law

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Trial Court Rules that Article 22’s “Original Condition” Refers to Property’s Condition at the Creation of a Mineral Servitude

A July 3, 2017 ruling from the 17th Judicial District establishes that a mineral servitude owner’s obligation under Mineral Code article 22 “to restore the surface to its original condition” means the condition of the property at the creation of the servitude—and not the property’s pristine, pre-operation condition.  The court’s commonsense ruling in Sterling Sugars … Continue Reading

Plaquemines Parish Amends Petition for Damages In Coastal Zone Management Act Litigation

The Parish of Plaquemines amended its petitions in two of the Coastal Zone Management Act (“CZMA”) cases on June 19, 2017.  Prior to the amendment of the petitions, Judge Clement sustained Defendants’ Exceptions of Vagueness in the two cases, namely: The Parish of Plaquemines v. Rozel Operating Co., et al. and The Parish of Plaquemines … Continue Reading

U.S. Fifth Circuit Greenlights Contribution Action for Purely Economic Damages Under Oil Pollution Act (OPA)

In Settoon Towing, L.L.C. v. Marquette Transportation Company, L.L.C., No. 16-30459 (5th Cir. Jun. 9, 2017), the United States Fifth Circuit Court of Appeals held for the first time that a Responsible Party under the Oil Pollution Act of 1990 (“OPA”) has a statutory claim for contribution to recover purely economic damages from a partially … Continue Reading

Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

In Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., the Louisiana Second Circuit upheld a trial court’s ruling that the holder of a security interest in mineral leases was solidarily liable for damages under the Louisiana Mineral Code stemming from its mineral lessees/mortgagors’ actions.[1] In the case, a landowner sued its mineral lessees for: (1) failure … Continue Reading

Louisiana Second Circuit Provides Clarity on Production in Paying Quantities and Affirms Lease Cancellation Under Mineral Code Article 140 for Failure to Pay Royalties

On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124.[1]  The dispute in Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., arose from a … Continue Reading

U.S. Fifth Circuit Adopts Broad Definition of “Good Faith” for Louisiana Environmental Whistleblower Claims

On June 1, 2017, the United States Fifth Circuit Court of Appeals in Borcik v. Crosby Tugs, L.L.C. applied a broad definition of the intent required of a plaintiff under the Louisiana Environmental Whistleblower Act.  In doing so, both the Fifth Circuit and the Louisiana Supreme Court apply a more plaintiff friendly standard to claims … Continue Reading

Casing Controversy: Does the Comparative Fault Codal Article Cover Contract Claims?

In Justiss Oil Company, Inc. v. Oil Country Tubular Corp., et al, the Louisiana Third Circuit Court of Appeal joined its sister circuit –the Louisiana Fourth Circuit Court of Appeal, in finding that La. Civ. Code art. 2323 applies only to actions sounding in tort – not to actions in contract, such as redhibition.  In … Continue Reading

U.S. Fifth Circuit Affirms Application of the Subsequent Purchaser Doctrine in Oilfield Contamination Case, Recognizes “Clear Consensus” Among Louisiana Appellate Courts, and Declines Certification to the Louisiana Supreme Court

In Guilbeau v. Hess Corporation, the United States Fifth Circuit Court of Appeals unanimously affirmed the application of Louisiana’s subsequent purchaser doctrine to bar a plaintiff’s claims for property damage resulting from alleged oilfield contamination that occurred prior to his purchase of the property.  The court specifically rejected the plaintiff’s attempt to characterize the multitude … 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

Expropriated Servitudes: They Aren’t Going Away Anytime Soon

The Third Circuit recently released an unpublished opinion making clear that when a pipeline company expropriates a servitude, the servitude is “perpetual,” and a Court cannot impose a term on that servitude.  The Third Circuit also held that a landowner must prove any damages over and above the fair market value of the property, and … 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
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