In Litel Explorations, LLC v. Aegis Development Co., LLC, 21-0741 (La. App. 3 Cir. 4/6/22), –So. 3d–, the Louisiana Third Circuit denied the LDNR’s claims for recovery of over 6.3 million dollars in emergency costs from prior operators of an orphaned well. The Court held that, when the LDNR spends monies from the Oilfield
Congress has dedicated $4.7 billion to orphan well plugging, remediation, and restoration activities nationwide through the Infrastructure Investment and Jobs Act (“IIJA”). A substantial portion of this money will be apportioned to the various states based on each state’s capacity and ability to effectively utilize the funds to plug orphan wells. Louisiana Senate Bills 23
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
On Friday, January 7, 2022, the Louisiana Supreme Court unanimously upheld a COVID-19 vaccine mandate program that the state’s largest private healthcare system implemented for its employees. Hayes, et al. v. University Health Shreveport, 21-01601 (La. 1/7/22). In doing so, the Court reaffirmed the employment-at-will doctrine, and its decision will likely be cited in
On September 30, 2021, the EPA once again signaled a policy change on what provisions a state can include in its Clean Air Act State Implementation Plan (“SIP”) for exemptions and affirmative defenses during periods of startup, shutdown, and malfunction (“SSM”). This most recent action revokes the EPA guidance issued nearly a year earlier in
In the wake of Hurricane Ida, many employers are struggling to find ways to maintain their business and protect their most precious asset: their employees. In this article, we review some of the most frequently asked labor and employment law questions facing employers in the aftermath of this catastrophic storm, including payroll issues, attendance issues,
The Louisiana legislature has passed new laws requiring employers to provide accommodations for certain pregnant employees and limiting an employer’s use of an applicant’s criminal history in hiring decisions. Both laws become effective on August 1, 2021.
Amendment to Pregnancy Accommodation Law
By Act No. 393 of the 2021 Regular Session, Louisiana’s nondiscrimination
As the number of solar projects continues to grow in Louisiana, a chief concern among Louisiana taxpayers is ensuring that these projects are properly decommissioning upon their abandonment. Solar development is largely in its infancy in Louisiana, with only a handful of projects having been constructed to date. However, lawmakers are acting now to ensure
On June 30, 2021, the Louisiana Supreme Court issued an opinion redefining the nature of available damages and the “actual, statutorily permitted role of the jury in Act 312 remediation lawsuits.” The “LL&E II” decision finds that Act 312 charges the court, not the jury, to determine the funding needed to remediate property to government standards. If (and only if) an express contractual provision requires greater remediation than government standards, a jury may consider and award such “excess remediation” damages. State of Louisiana v. Louisiana Land and Exploration Co., 2020-00685 (La. 6/30/2021); — So. 3d — (“LL&E II”).[1]
Continue Reading Overturning 8 Years of “Palpable Error,” The Louisiana Supreme Court Limits Damages Available to Landowners in Oilfield Legacy Litigation
Perhaps the most important right granted in a solar development agreement is the right of the solar developer to use the surface of the property to evaluate, construct, and operate the solar farm. But how can the solar developer ensure that its right to use the surface of the property is not encumbered by or inferior to the rights of others? Or, more specifically, how can the solar developer ensure that a mineral estate owner will not be able to locate a well in the middle of its solar farm? This issue is at the forefront of the minds of the renewables industry and was the subject of a recent Texas Court of Appeals decision. As renewable energy projects continue to multiply, clashes between solar developers and mineral interest owners will increase as well.
Continue Reading Solar Leasing in Louisiana: The Accommodation Doctrine