Insight and Analysis of Legal Issues Impacting the Energy Industry
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
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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
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 expected to be the largest CCS project in the United States and one of the largest in the world, according to its press release.
Continue Reading Advancement of CCS in Louisiana
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
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 Third Circuit 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 concluded that a finding of “environmental damage” as defined under Act 312 is sufficient to trigger a breach of contract claim.
Continue Reading Third Circuit Issues New Act 312 Decision Involving Prescription and Breach of Contract
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
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 of “stay home” orders—typically instructing all but “essential personnel” to remain in their residences other than to gather necessaries. These events have dramatically impacted the world economy, and wreaked havoc on the day-to-day functions of individuals and businesses in the United States and elsewhere. Does this pandemic and resultant disruption constitute a force majeure event under Louisiana and Texas law?Continue Reading COVID-19 as a Force Majeure? The Texas and Louisiana Perspectives
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 how to proceed.Continue Reading Commissioner of Conservation Issues Letter Addressing Emergency Measures to Help Louisiana Oil and Gas Industry
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 Parish of Plaquemines v. Riverwood Production Company, et al. (“Riverwood”), No. 18-5217, 2019 WL 2271118 (E.D. La. May 28, 2019). The Western District recently joined the Eastern District and granted similar remand motions filed by Cameron Parish and the State of Louisiana in Parish of Cameron, et al. v. Auster Oil & Gas Incorporated, et al. (“Auster”), No. 18-677, 2019 WL 4734394 (W.D. La. Sept. 26, 2019), —F. Supp. 3d—. Although there are procedural differences between Riverwood and Auster, both district courts found no federal officer or federal question jurisdiction over the CZM cases. The Fifth Circuit is poised to resolve these jurisdictional issues in the upcoming year.
Continue Reading Second Remand Order in Coastal Zone Management Cases Pending Before Fifth Circuit
