On August 30, 2022, the Texas Railroad Commission approved proposed regulations relating to Class VI wells utilized for injecting and sequestering carbon dioxide in geologic formations. This is an important step towards obtaining primary enforcement authority (or “primacy”) over the Safe Drinking Water Act Underground Injection Control (“UIC”) Class VI well permitting program, which currently
Louisiana Law
Livingston Parish Ban on Injection and Disposal Wells Passes
In a recent blog post, we discussed a proposed ordinance before the Livingston Parish Council to ban injection and disposal wells in Livingston Parish. Yesterday, the council unanimously voted to pass the ordinance, which places a one-year moratorium on injection and disposal wells. To read more, click here.
Disclaimer: This Blog/Web Site is made…
Livingston Parish Council Proposes Ordinance Banning Injection and Disposal Wells
Last week, the Livingston Parish Council introduced a proposed ordinance that would place a moratorium on “the construction of disposal wells and injection wells in the Parish of Livingston.”[1] Although not limited to Class VI injection wells—which are those wells utilized for the injection and permanent sequestration of carbon dioxide—the proposed ordinance is clearly…
New Amendment to Louisiana’s Geologic Sequestration of Carbon Dioxide Act Creates Expropriation Rights to Prohibit Drilling through Carbon Capture Storage Reservoirs in Caldwell Parish
In response to various pressures on the energy industry to reduce the environmental impact associated with excess carbon dioxide emissions, many energy companies are investigating carbon capture and sequestration projects as a means of reducing their carbon emissions. In addition to reducing carbon emissions, carbon capture and sequestration projects often qualify for valuable income tax…
Louisiana Third Circuit Affirms that LDNR Can Only Recover Emergency Response Costs Under La. R.S. 30:93(A)(4) from the Operator of Record and its Working Interest Owners
In Litel Explorations, LLC v. Aegis Development Co., LLC, 21-0741 (La. App. 3 Cir. 4/6/22), –So. 3d–, the Louisiana Third Circuit denied the LDNR’s claims for recovery of over 6.3 million dollars in emergency costs from prior operators of an orphaned well. The Court held that, when the LDNR spends monies from the Oilfield…
Proposed Louisiana Senate Bills Could Secure Up To $200M In Federal Funds For Orphan Well Restoration
Congress has dedicated $4.7 billion to orphan well plugging, remediation, and restoration activities nationwide through the Infrastructure Investment and Jobs Act (“IIJA”). A substantial portion of this money will be apportioned to the various states based on each state’s capacity and ability to effectively utilize the funds to plug orphan wells. Louisiana Senate Bills 23…
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
Louisiana Supreme Court Relies on Employment-at-Will Doctrine in Enforcing Private Employer’s Vaccine Mandate
On Friday, January 7, 2022, the Louisiana Supreme Court unanimously upheld a COVID-19 vaccine mandate program that the state’s largest private healthcare system implemented for its employees. Hayes, et al. v. University Health Shreveport, 21-01601 (La. 1/7/22). In doing so, the Court reaffirmed the employment-at-will doctrine, and its decision will likely be cited in…
EPA’s Shifting Guidance on Startup, Shutdown, and Malfunction Defenses in State Implementation Plans and Its Effect in Louisiana
On September 30, 2021, the EPA once again signaled a policy change on what provisions a state can include in its Clean Air Act State Implementation Plan (“SIP”) for exemptions and affirmative defenses during periods of startup, shutdown, and malfunction (“SSM”). This most recent action revokes the EPA guidance issued nearly a year earlier in…
Labor and Employment Law FAQs Related to Hurricane Ida
In the wake of Hurricane Ida, many employers are struggling to find ways to maintain their business and protect their most precious asset: their employees. In this article, we review some of the most frequently asked labor and employment law questions facing employers in the aftermath of this catastrophic storm, including payroll issues, attendance issues,…