In December of 2016, Republican John Kennedy won the United States Senate runoff election in Louisiana. On the campaign trail, Senator Kennedy promised to do his part in strengthening the declining oil and gas industry in Louisiana by easing restrictions imposed by the Obama Administration and fighting to bring back old jobs and create new ones in the energy sector. Now that President Donald Trump has taken office and Republicans control the United States House and Senate, Senator Kennedy has taken action.
7 Takeaways from the Maritime Investigations Presentation at This Year’s Work Boat Show in New Orleans
It is Work Boat Show time in New Orleans, and yesterday featured a great presentation on marine investigations. Any maritime lawyer worth her salt will tell you that the best part of the practice is getting that 0200 client call about a casualty, donning your protective gear, and racing to the ship. No other legal practice offers the opportunity to regularly perform the equivalent of emergency room medicine like maritime law. Not only is the practice exciting, but there is a great feeling that comes from knowing that your client trusts you enough to rely on you in such a high-stakes situation.
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EPA Publishes Proposed Renewables Enhancement and Growth Support Rule
On November 11, 2016, the EPA published a proposed rule designed to update its Renewable Fuel Standards Program and support the growth of renewable fuel use. With the stated goal of removing barriers to production and distribution of renewable fuels, the proposed rule has three main components:
(1) Updated Regulatory Structure to Address Biofuel Processing at Multiple Facilities – In some circumstances, biofuel producers can decrease the costs of production by processing feedstock at one facility and converting that material—called a biointermediary—into a biofuel at another facility.
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Fifth Circuit Limits Effect of Collateral Source Rule Under General Maritime Law
In DePerrodil v. Bozovic Marine, Inc., No. 16-30009, 2016 WL 6810728, at *1 (5th Cir. Nov. 17, 2016), a panel of the United States Court of Appeals for the Fifth Circuit recently limited the effect of the collateral source rule in a maritime employee’s personal injury action against a non-employer. DePerrodil held that the collateral source rule allows a plaintiff, in a maritime personal injury action against a third party, to recover only the amount of medical expenses paid by the plaintiff’s employer’s Longshore and Harbor Workers’ Compensation Act (“LHWCA”) insurer.
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Offshore Companies Face Surge in BSEE Enforcement Actions and Penalties
In recent years, offshore companies have witnessed a marked uptick in the number of enforcement actions undertaken by the Bureau of Safety and Environmental Enforcement (BSEE).[1] Operators face more BSEE inspections, Incidents of Non-Compliance (INCs), and civil penalties than ever before. Meanwhile, the average penalty amount has grown. For example, in 2014 the agency imposed a civil penalty of $1,230,000—an unprecedented figure in the history of the BSEE civil penalty program. BSEE has also begun to target offshore contractors, who, until recently, have not faced exposure to agency enforcement actions. See Island Operating Co., Inc., 186 IBLA 199 (2015). Together, these developments will undoubtedly lead to more litigation and a higher cost of doing business on the Outer Continental Shelf.
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BOEM Releases Long Awaited New Financial Assurance Notice to Lessees and Operators
The Bureau of Ocean Energy Management (BOEM) released its long awaited new Notice to Lessees and Operators (NTL) updating the procedures and criteria used to determine when and if additional supplemental financial assurance is required for an Outer Continental Shelf (OCS) lease, pipeline right-of-way, or right-of-use and easement. New BOEM NTL No. 2016-N01, dated July 12, 2016, takes effect on September 12, 2016 and supersedes and replaces NTL No. 2008-N07, which was commonly referred to by industry as the “supplemental bond” NTL.
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Regulating the Regulators: Supreme Court Allows Judicial Review of Clean Water Act Determinations
The United States Supreme Court recently addressed whether the United States Army Corps of Engineers’ determination that wetlands are “waters of the United States” constitutes a final agency action that is subject to judicial review under the Administrative Procedure Act in U.S. Army Corps of Engineers v. Hawkes Co., Inc., 15-290, 2016 WL 3041052 (U.S.
Sea Change: New BOEM Proposed Rule Signals Major Shift in How Air Emissions Would Be Regulated in the OCS
In the next few days, the Bureau of Ocean Energy Management (BOEM) will publish in the Federal Register a Proposed Rule that would result in a significant change on how the agency regulates air emissions from oil and gas operations on the Outer Continental Shelf (OCS), in the Central and Western Gulf of Mexico (GOM).
U.S. Fifth Circuit Limits Vessels’ Obligations Under Louisiana One-Call Reporting
A panel of the United States Fifth Circuit consisting of Chief Judge Stewart and Judges Jolly and Graves recently issued a per curiam opinion regarding the effect of the Louisiana Underground Utilities and Facilities Protection Law (the “Louisiana One-Call Statute”). Plains Pipeline, L.P. et al. v. Great Lakes Dredge & Dock Co., et al.,
White House Wants to End Royalty-in-Kind Program
by Elisabeth Lorio Baer
Interior Secretary Ken Salazar informed Congress on September 17, 2009 that he would kill a controversial program, currently in effect, that allows energy companies to pay the government royalties for drilling on public lands in actual oil and gas in lieu of cash. The announcement was made during testimony to the