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Louisiana Oil & Gas Law

In Mary v. QEP Energy Company, the Western District of Louisiana rejected, for the second time in this case, Plaintiffs’ claims seeking a disgorgement of QEP’s profits.  QEP was the lessee of a mineral lease covering Plaintiffs’ property, but because it wanted to transport off-site gas across their property, QEP also obtained a pipeline

A recent decision from the Louisiana First Circuit Court of Appeal may have lasting effects on good faith purchasers of oil. In Hill v. TMR Exploration, Inc, 2021 WL 267916, the First Circuit affirmed a district court ruling on summary judgment applying the good faith purchaser defense provision set forth in La. Civ. Code

In its recent decision in Grace Ranch, L.L.C. v. BP America Production Company, et al., No. 20-30224 (5th Cir. Feb. 24, 2021), the United States Court of Appeals for the Fifth Circuit addressed a question that has increasingly become a sticking point in Louisiana “legacy” cases:  whether claims brought under a Louisiana citizen suit

The issue of whether a company is an independent contractor of an E & P company is frequently litigated in oilfield injury accidents, as the injured worker searches for multiple sources of possible recovery.  In McDaniel v R.J.’s Transportation, LLC,  —- So.3d —, 2021 WL115917, the Second Circuit affirmed summary judgment in favor of

In 2003, the Louisiana Supreme Court rendered its landmark decision in Corbello, et al. v. Iowa Production, et al.  Since then, Louisiana courts have seen a steady stream of “legacy litigation” claims being filed.  Legacy litigation claims generally concern alleged contamination arising from historic oil and gas operations under theories of both breach of

As it “is impossible to transfer rights to an assignee under an expired mineral lease,” in a case where oil, gas and mineral leases had expired prior to plaintiff’s acquisition of the property, the Louisiana Third Circuit Court of Appeal in Litel Explorations, L.L.C. v. Aegis Development Company, L.L.C., et al. affirmed dismissal of claims pursuant to the subsequent purchaser doctrine, which provides that the right to sue for property damage is a personal right that belongs to the landowner who owned the property at the time the damage occurred, unless the right has been explicitly assigned or subrogated to the subsequent purchaser of the land.
Continue Reading Louisiana Third Circuit Confirms Settled Application of Subsequent Purchaser Doctrine Where Expired Mineral Leases at Issue

In a straightforward application of Louisiana’s prescriptive principles, the Louisiana Court of Appeal for the Third Circuit affirmed the trial court’s grant of exceptions of prescription, finding plaintiff’s claims for fraud, under the Louisiana Unfair Trade Practices Act (LUTPA), and for unpaid royalties all prescribed in Karen May v. The Succession of Mayo Romero
Continue Reading Louisiana Third Circuit Affirms Dismissal of Royalty and Other Claims Based Upon Prescription

On October 6, 2020, the Louisiana Supreme Court granted a writ application filed by UNOCAL in State of Louisiana, et al. v. Louisiana Land & Exploration Co., et al. This application sought review of the Louisiana Third Circuit’s decision that affirmed the Vermilion Parish School Board’s authority to sue on behalf of the state, rejected a prescription defense on the basis of prescription immunity under the Louisiana Constitution, and found that “environmental damage” as defined under Act 312 is sufficient to trigger a breach of contract claim. A detailed summary of the Third Circuit’s decision can be found here.
Continue Reading Louisiana Supreme Court Grants UNOCAL’s Writ Application from Third Circuit Decision Involving Prescription and Breach of Contract in Act 312 Case

A special meeting of the Louisiana State Mineral and Energy Board was held on April 29, 2020, to address the impacts of both COVID-19 and historically low oil prices on operation and maintenance of Louisiana State Leases.  The Board approved two proposed resolutions (1. Proposed Enforcement Moratorium Resolution 2. Proposed Penalty Waiver Resolution) that will assist State Lessees during these difficult times.
Continue Reading Louisiana State Mineral and Energy Board Approves Resolutions Providing Relief for State Lessees

While the long-term fallout from the recent decline in oil prices and the COVID-19 pandemic remains unclear, it is clear that drilling activity has already started to decline. During this downturn in activity, mineral rights owners must remain cognizant of the maintenance activities necessary to preserve their mineral rights.  Cannisnia Plantation, LLC v. Cecil Blount Farms, LLC,[1] is the most recent decision that provides the industry with a real-life application of the rules under Louisiana law for maintaining mineral servitudes.
Continue Reading Louisiana Second Circuit Provides Guidance as to Good Faith Required When Conducting Operations Necessary to Interrupt Prescription of Mineral Servitude