Archives: Louisiana Mineral Law

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United States Western District of Louisiana Issues Opinion on Notice Required Under La. R.S. 30:103.1 and 103.2 to State a Plausible Claim for Relief

In recent years, there has been an increase in litigation relating to the unleased owner reporting requirements contained in La. R.S. 30:103.1 and the penalty imposed in La. R.S. 30:103.2.  There are few cases interpreting these statutes. However, the existing authority recognizes that even if an operator fails to comply with such reporting requirements, an … Continue Reading

Federal Agency Recommends Updated Regulations for Pipeline Monitoring, Decommissioning, and Abandonment

On April 19, the United States Government Accountability Office (“GAO”) released a report (the “Report”) in response to a request from the House of Representatives Committee on Natural Resources regarding the oversight and decommissioning of pipelines in federal waters, which are mainly located within the Gulf of Mexico.  The Report concluded that the Bureau of … Continue Reading

Western District Rejects Disgorgement of Profits Claim for Pipeline Trespass

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 servitude … Continue Reading

Future Outlook for Subsurface Trespass Claims Against Third Party Purchasers of Minerals

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 arts. … Continue Reading

United States Fifth Circuit Court of Appeals Finds That Louisiana Citizen Suit Legacy Claims Can be Heard in Federal Court

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 provision … Continue Reading

Second Circuit Upholds Independent Contractor Status for E & P Company

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 Comstock … Continue Reading

Is the Frequency of Louisiana Environmental Quality Act Citizen Suit Litigation Increasing?

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 contract … Continue Reading

Louisiana Third Circuit Affirms Dismissal of Royalty and Other Claims Based Upon Prescription

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

Advancement of CCS in Louisiana

Earlier this month, Gulf Coast Sequestration (“GCS”), a limited liability company based in Lake Charles, announced its plans to build and operate a carbon capture and sequestration (“CCS”) project that will create a repository 10,000 feet underground for the permanent storage of more than 80 million tons of carbon. Once completed, the GCS facility is … Continue Reading

Louisiana Supreme Court Grants UNOCAL’s Writ Application from Third Circuit Decision Involving Prescription and Breach of Contract in Act 312 Case

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 … Continue Reading

Third Circuit Issues New Act 312 Decision Involving Prescription and Breach of Contract

The Louisiana Third Circuit Court of Appeal recently issued an opinion involving issues of prescription and breach of contract claims in the context of Act 312 and “legacy lawsuits” that oil and gas companies must remain cognizant of going forward. In State of Louisiana, et al. v. Louisiana Land & Exploration Co., et al., the … Continue Reading

Louisiana State Mineral and Energy Board Approves Resolutions Providing Relief for State Lessees

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 … Continue Reading

Louisiana Second Circuit Provides Guidance as to Good Faith Required When Conducting Operations Necessary to Interrupt Prescription of Mineral Servitude

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 … Continue Reading

COVID-19 as a Force Majeure? The Texas and Louisiana Perspectives

Today, countries worldwide are responding to a pandemic of respiratory disease spreading from person-to-person caused by a novel coronavirus.  The disease has been named “coronavirus disease 2019” (abbreviated “COVID-19”).  The pandemic poses a serious public health risk, and government response has included closure of schools and businesses, declarations of emergency, and issuance of a variety … Continue Reading

Commissioner of Conservation Issues Letter Addressing Emergency Measures to Help Louisiana Oil and Gas Industry

The impacts of COVID-19 have rapidly swept across the country and the globe. Coupled with the recent decline in oil and gas prices, many operators are left scrambling in an attempt to navigate unprecedented circumstances.  With shutdowns and stay-at-home orders in place and regulatory deadlines looming, Louisiana operators are looking for guidance from regulators on … Continue Reading

Second Remand Order in Coastal Zone Management Cases Pending Before Fifth Circuit

In May 2018, oil and gas industry defendants removed a docket of 42 cases alleging violations of Louisiana’s coastal zone management laws to federal court in the Eastern and Western Districts of Louisiana (“CZM cases”).  One year later, the Eastern District granted motions to remand filed by Plaquemines Parish and the State of Louisiana in … Continue Reading

Supreme Court Holds State Wage and Hour Laws are Inapplicable to Offshore Drilling Platforms

In a decision that could have far-reaching implications, the United States Supreme Court issued a June 10 opinion holding that California’s wage-and-hour laws do not apply to workers on oil and gas platforms located in open water on the Outer Continental Shelf. The plaintiffs in Parker Drilling Management Services, Ltd. v. Newton, were offshore rig workers who filed … Continue Reading

Motion to Remand Granted in One Coastal Zone Management Act Case But Federal Appellate Options Remain Viable

On May 28, 2019, United States District Judge Martin Feldman issued a sixty-four page Order and Reasons which granted motions to remand filed by Plaquemines Parish and the State of Louisiana in The Parish of Plaquemines v. Riverwood Production Co., et al.  That case is one of forty-two Coastal Zone Management Act (“CZMA”) cases that … Continue Reading

Liskow Obtains Victory for the Oil and Gas Industry in the Louisiana Third Circuit

In a victory for the oil and gas industry, the Third Circuit rendered a decision rejecting attempts by the Louisiana Department of Revenue to impose severance taxes on crude oil production based on index pricing.  The Third Circuit reaffirmed that severance taxes should be based on the “gross proceeds” obtained in an arm’s length sale … Continue Reading

Western District of Louisiana Holds that Unit Operators May Not Recover Post-Production Costs from an Unleased Mineral Owner’s Share of Production Proceeds

On March 21, 2019, the U.S. District Court for the Western District of Louisiana held that a unit operator may not recover post-production costs from an unleased mineral owner’s share of production proceeds in Allen Johnson, et al. v. Chesapeake Louisiana, LP.[1]  The dispute in Johnson involved a group of unleased mineral owners (“UMOs”) who … Continue Reading

Haynesville shale gas production is increasing again; Will Haynesville-related litigation increase again, too?

In August 2018, dry natural gas production from the Haynesville shale averaged 6.774 billion cubic feet per day, which is the highest daily Haynesville production average since September 2012 when production averaged 6.962 billion cubic feet per day.  August 2018 was not an anomaly.  Instead, this year, the Haynesville has seen steady increases in production … Continue Reading

Louisiana’s Third Circuit (Again) Affirms the Applicability of the Subsequent Purchaser Doctrine to Mineral Leases

While oil and gas company-defendants—and several courts alike—have deemed the applicability of the subsequent purchaser doctrine to mineral leases a settled issue of law, plaintiff-landowners have continued to argue otherwise.  In a unanimous opinion issued July 18, 2018 in Grace Ranch, LLC v. BP America Production Company, et al., the Third Circuit not only provides … Continue Reading

The Coastal Zone Management Act Litigation Removed to Federal Court (Again)

On or about May 23, 2018, several Defendants in the Coastal Zone Management Act (“CZMA”) Litigation filed Notices of Removal in 42 lawsuits filed against 212 oil and gas companies by six different parishes (Plaquemines, Jefferson, Cameron, Vermilion, St. Bernard, and St. John the Baptist), removing the cases to federal court.  The timing of the … Continue Reading

Louisiana Supreme Court’s reversal of Gloria’s Ranch clarifies calculation of damages for unpaid mineral royalties, provides relief for holders of security interests in mineral rights

The Louisiana Supreme Court’s reversal of Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., hands a victory to financiers of oil and gas operations and settles a long-running controversy over the amount of damages available for failure to pay mineral royalties. The Gloria’s Ranch trial court held two mineral lessees and a mortgagee (Wells Fargo) solidarily liable … Continue Reading
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