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

On Tuesday, the United States Court of Appeals for the Eleventh Circuit addressed the question of whether the 1962 U.S. Supreme Court holding in Vaughan v. Atkinson, 369 U.S. 527 (1962) requires courts hearing maintenance and cure cases to construe disputed medical evidence in the seaman’s favor. In Witbart v. Mandara Spa (Hawaii), LLC

Governor Edwards’ Climate Initiatives Task Force, charged with making recommendations to reduce greenhouse gas emissions originating in Louisiana, recently took another step towards that goal.
Continue Reading Renewable Energy Efforts Highlighted in Draft Plan to Reduce Greenhouse Gas Emissions in Louisiana

While much of the interest around sustainability and social responsibility has centered on larger public companies, private companies are set to make significant contributions to these efforts by integrating Environmental, Social and Governance (ESG) principles.  Modern businesses understand that sustainability and social responsibility are no longer niche interests and prioritizing a strong ESG proposition creates

On July 1, 2021, the Internal Revenue Service published Revenue Ruling 2021-13, which provides guidance on three important issues related to the income tax credit for carbon oxide sequestration found in section 45Q of the Internal Revenue Code.  Recall that section 45Q provides for a credit against a taxpayer’s income tax liability based on the amount of carbon oxide (a) captured using carbon capture equipment, (b) placed in service at a qualified facility and (c) disposed of, injected, or utilized in a specified manner.  For more information on carbon capture and section 45Q tax credits, see here, here and here.
Continue Reading New IRS Revenue Ruling Provides Opportunities for Financing Carbon Capture Equipment

On June 29, 2021, the United States Supreme Court, in a 5-4 vote, held that a natural gas company’s right to condemn property for a pipeline under the Natural Gas Act includes the right to condemn state-owned property. In PennEast Pipeline Co. v. New Jersey,[1] the divided Court held that a certificate from the Federal Energy Regulatory Commission (FERC) entitled PennEast Pipeline Company (PennEast) to use the federal government’s power of eminent domain to seize property owned by the State of New Jersey.
Continue Reading United States Supreme Court Blocks New Jersey’s Sovereign Immunity Challenge to FERC Certificate Holder’s Condemnation of State-Owned Land

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

TC Energy Corporation stated that it filed a notice of intent with the U.S. Department of State that it will make a claim against the U.S. under the North American Free Trade Agreement (NAFTA). The claim will be based on President Biden’s January 2021 revocation of TC Energy’s Keystone XL Pipeline permit.
Continue Reading TC Energy’s $15B Claim Against U.S. for Biden’s Revocation of Keystone XL Pipeline Permit

Last week, the Louisiana Governor’s Office hosted Louisiana Wind Week 2021 to assess Louisiana’s future in offshore wind energy development. Louisiana Wind Week followed the Bureau of Ocean Energy Management (BOEM)’s first Gulf of Mexico Intergovernmental Renewable Energy Task Force meeting, which was held on June 15.
Continue Reading Louisiana’s Future in Offshore Wind: Takeaways from Louisiana Wind Week

Devon Energy Production Company, L.P. v. Sheppard is a royalty dispute between several lessees, Devon Energy Production Co., L.P., et. al., and several lessors, Michael A. Sheppard, et. al., concerning a novel royalty term that may have a huge impact on the way oil and gas royalties are paid in the future.  See 13-19-00036-CV, 2020 WL 6164467, at *12 (Tex. App.—Corpus Christi Oct. 22, 2020, pet. filed).  The novel term, referred to as an “add-back” or “add-to-proceeds” provision, requires any deductions to the sale of production to be added back to the proceeds in order to determine the appropriate royalty base.  The lessors argue that under this term, the deductions in the lessees’ sales contracts attributable to the buyers’ post-transfer costs must be added to the gross proceeds in order to establish a royalty base above the gross proceeds.  The lessees disagree, countering that the clear intent of the provision is merely to prohibit the deduction of their own post-production costs, not the post-transfer costs of the buyers.  The lessors won in the trial court; the court of appeals affirmed.  Now the case is before the Texas Supreme Court, with a recently submitted amicus brief containing the argument that could turn the tides back in the lessees’ favor.
Continue Reading New Developments in Shocking Case Before the Texas Supreme Court Regarding Construction of Novel Oil & Gas Royalty Term