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”)
In a recent opinion released by the United States Court of Appeals for the District of Columbia Circuit, the court declined to vacate a deficient environmental impact statement (“EIS”) prepared in connection with two offshore lease sales held in 2018, the records of decision announcing the sales, or the leases issued.
The court stated that
A petition filed on July 19 by Sierra Club and Healthy Gulf seeks review of a “dredge and fill” permit granted by the U.S. Army Corps of Engineers to Driftwood LNG – a liquefied natural gas (LNG) export terminal under construction near Lake Charles. The permit was issued under the Clean Water Act in March
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
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
Carbon capture, utilization, and storage (CCUS) projects involve various legal issues. Like traditional exploration and development, CCUS projects require the operator to secure both the necessary private property rights from landowners as well as regulatory approval from the appropriate administrative agency in order to proceed. This article focuses on the latter.
Regulatory approval for CCUS
Louisiana Revised Statutes 30:103.1 et seq. have been heavily litigated in recent years, but there are only a handful of reported decisions interpreting these statutes. Many of these decisions involve whether a party complied with the strict notice requirements contained in the statutes. B.A. Kelly Land Company, L.L.C. v. Aethon Energy Operating, L.L.C., 25
On February 11, 2022, the Biden Administration’s climate change agenda sustained a major blow as Judge James D. Cain of the Western District of Louisiana enjoined a Biden administration executive order that charged federal agencies with considering the “social cost of carbon” in their decision making. The injunction could have far reaching impacts on the
In Mary v. QEP Energy Company, the U.S. Fifth Circuit held that a landowner is not entitled to a pipeline company’s profits as a consequence of a portion of a pipeline being located partially outside of a servitude. The Fifth Circuit concluded that a landowner can only recover the additional profits earned by defendant
The subsequent purchaser doctrine has been litigated extensively in Louisiana legacy cases involving claims for oilfield remediation. The doctrine provides that a current landowner has no standing to bring a lawsuit for property damage that occurred prior to its acquisition absent a valid assignment from the prior landowner of the personal right to sue. However, until now, no appellate court had addressed whether the doctrine barred a claim brought by a closely held or family-owned company who acquired the property in an intra-family transfer. In Louisiana Wetlands, LLC v. Energen Resources Corporation, 2021-0290 (La. App. 1 Cir. 10/4/21), 2021 WL 4548529, —So. 3d—, the Louisiana First Circuit answered this question in the affirmative, holding that the subsequent purchaser doctrine applies to property transfers from family members to a company which they also own.
Continue Reading Louisiana First Circuit Applies Subsequent Purchaser Doctrine to Property Transfer Involving Closely Held LLC