The Texas Supreme Court recently released its opinion in Van Dyke v. Navigators Grp., No. 21-0146, 2023 WL 2053175 (Tex. Feb. 17, 2023), in which it re-affirmed the axiomatic principle that a text retains the same meaning in the present day as when it was drafted. In the context of antiquated oil and gas
Energy Litigation
2023 Begins With Increased (or Unlimited) Liability for Vessel Owners
A Regulatory Increase to the Limits of Liability for Oil Pollution and an Amendment Exempting Small Passenger Vessels from the Limitation of Liability Act Present New Challenges for Vessel Owners
U.S. maritime law experienced two significant changes on December 23, 2022—one pertaining to liability for oil pollution, the other concerning small passenger vessels.
First, the…
2023 Master Plan Brings Updates to Coastal Research and Projects
The Louisiana Coastal Protection and Restoration Authority (CPRA) recently released its 2023 draft Coastal Master Plan, which is required by law to be updated every six years. The most recent draft is the fourth update since it was first adopted by the Louisiana Legislature in 2007 following Hurricanes Katrina and Rita in 2005.[1]…
Fifth Circuit Allows Landowners’ Tort Claim Against Louisiana Department of Environmental Quality to Move Forward
In a recent decision, the United States Fifth Circuit Court of Appeals remanded to state court a case brought by landowners against the Louisiana Department of Environmental Quality (“LDEQ”) and several past and present owners and operators of an industrial facility (“Facility Defendants”), finding that LDEQ was not improperly joined, and therefore the case could…
Louisiana State Court Reverses Issuance of Air Permits, Citing Environmental Justice Concerns
On September 14, 2022, the 19th Judicial District Court revoked air permits issued by the Louisiana Department of Environmental Quality (“LDEQ”) under Louisiana’s Prevention and Significant Deterioration (“PSD”) regulations[1] for a Formosa Plastics facility (“FG LA”) planned to be built in St. James Parish.[2] The court ruled that LDEQ erred in issuing…
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”)…
United States Court of Appeals Finds BOEM Environmental Impact Statement Deficient, But Declines to Vacate Leases Issued in 2018 Offshore Lease Sales
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…
LNG Facilities Facing Environmental Challenges
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…
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…
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