Archives: Oil & Gas

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Louisiana Supreme Court Upholds Expropriation of Commercial Venture

By Cheryl M. Kornick and Matthew D. Simone on Posted in Appellate, Business Law, Business Litigation, Constitutional, Energy Litigation, Industry News, Litigation, Louisiana Law, Louisiana Mineral Law, Oil & Gas, Pipeline, Property Law
In a decision announced this week, the Louisiana Supreme Court ruled on the constitutionality and method of compensation for the expropriation by a governmental body of property owned by an ongoing commercial venture.   In St. Bernard Port, Harbor & Terminal District v. Violet Dock Port, Inc., LLC, the St. Bernard Port, Harbor & Terminal District … Continue Reading

Highly Anticipated En Banc Fifth Circuit Opinion Reframes Maritime Contract Analysis

By Don K. Haycraft on Posted in Construction, Contracts, Energy & Natural Resources, Energy Litigation, Insurance, Louisiana Oil & Gas Law, Maritime, Maritime, Oil & Insurance, Maritime, Oil & Insurance Business Law, Maritime, Oil & Insurance Litigation, Offshore, Oil & Gas, Oil & Gas Contracts
In a highly anticipated ruling, the United States Fifth Circuit Court of Appeals issued its en banc decision in In re: Larry Doiron, Inc., No. 16-30217 (5th Cir. Jan. 8, 2018).  The case called upon the court to determine whether a contract for performance of specialty services to facilitate the drilling or production of oil … Continue Reading

Louisiana Supreme Court Grants Writs from Second Circuit Decision Finding Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Resulting from the Mineral Lessees’ Breach of Contractual and Statutory Obligations

By Kathryn Zainey Gonski and Kelly Brechtel Becker on Posted in Appellate, Business, Litigation, Louisiana Law, Louisiana Mineral Law, Louisiana Oil & Gas Law, Oil & Gas, Oil & Gas Contracts, Royalty
On Friday, December 15, the Louisiana Supreme Court granted three separate writ applications filed by each of the defendants in Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc.  These applications sought review of the Louisiana Second Circuit’s June 2, 2017 decision affirming the trial court’s ruling that Wells Fargo, a mortgage lender with a security interest in a … Continue Reading

Liskow Lawyers Obtain Win for Oil and Gas Industry in Severance Tax Litigation

By Liskow & Lewis on Posted in Litigation, Louisiana Oil & Gas Law, Oil & Gas, Tax
In a decision by the Louisiana Board of Tax Appeals, Liskow & Lewis attorneys Robert Angelico, Jim Exnicios, Cheryl Kornick, RJ Marse, and Jeff Birdsong obtained a ruling rejecting attempts by the Louisiana Department of Revenue to increase the amount of severance taxes due on crude oil produced in Louisiana.  The Department of Revenue targeted … Continue Reading

U.S. Fifth Circuit Affirms $20 Million Judgment Against Barge Owner as Responsible Party Under the Oil Pollution Act of 1990

By Lauren Bridges and David L. Reisman on Posted in Energy Litigation, Environmental, Environmental Regulatory, Industry News, Litigation, Maritime, Maritime, Oil & Insurance, Maritime, Oil & Insurance Business Law, Maritime, Oil & Insurance Litigation, Oil & Gas, Toxic Tort & Environmental Litigation
Case:    United States v. American Commercial Lines, L.L.C., No. 16-31150, ___ F.3d ___ (5th Cir. 11/7/17). Factual Background In July of 2008, nearly 300,000 gallons of oil spilled into the Mississippi River in New Orleans when a tugboat towing an oil-filled barge veered across the river into the path of an ocean-going tanker.  American … Continue Reading

Third Circuit Affirms Trial Court’s Refusal to Adopt DNR’s Most Feasible Plan in Sweet Lake Land & Oil Co. v. Oleum Operating Company

By Kelly Brechtel Becker, Katie Seegers Roth and Jamie D. Rhymes on Posted in Environmental, Exploration and Production, Legacy Litigation, Litigation, Louisiana Mineral Law, Louisiana Oil & Gas Law, Oil & Gas, Regulatory
The Louisiana Legislature passed “Act 312,” La. R.S. 30:29, in 2006 to provide a procedure for ensuring that amounts awarded to remediate environmental damage are actually spent on remediation.  Act 312 sets forth a multi-step scheme that is triggered once a party is found responsible for environmental damage, culminating with Department of Natural Resources (“DNR”) … Continue Reading

Plaintiffs and Defendants Jointly Choose First Cases for Trial in Plaquemines Parish Coastal Zone Management Act Litigation

By Dana M. Douglas and Jonathan J. Fox on Posted in Environmental, Industry News, Litigation, Louisiana Oil & Gas Law, Oil & Gas
The first five Plaquemines Parish Coastal Zone Management Act (“CZMA”) cases to be set for trial have been chosen. The Plaintiffs selected Parish of Plaquemines v. Rozel Operating Company, et al., Parish of Plaquemines v. ConocoPhillips Company, et al., and Parish of Plaquemines v. Hilcorp Energy Company, et al.  The Defendants picked Parish of Plaquemines v. … Continue Reading

The Fifth Circuit Rejects the DOJ’s Attempt to Charge Black Elk Contractors with OCSLA Felonies

By Sean Toomey, Devin C. Reid and Carson Haddow on Posted in Appellate, Criminal, Energy & Natural Resources, Energy Litigation, Environmental, Environmental Business & Transactional, Environmental Regulatory, Exploration and Production, Government Investigations & White Collar Defense, Industry News, Maritime, Offshore, Oil & Gas, Regulatory
In the aftermath of a 2012 platform explosion in the Gulf of Mexico in which three workers were killed, the Department of Justice ultimately indicted the contractors who supervised the work (along with the lease holder, Black Elk Energy Offshore Operations, LLC) with violating the Outer Continental Shelf Land Act (“OCSLA”), a felony carrying a … Continue Reading

Strong Dissent Warns of “Devastating Economic Repercussions” of Second Circuit’s Decision in Oil & Gas Case

By Laura Springer Brown and Kelly Brechtel Becker on Posted in Finance, Louisiana Mineral Law, Louisiana Oil & Gas Law, Oil & Gas, Oil & Gas Contracts
In Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., the Louisiana Second Circuit upheld a trial court’s ruling that Wells Fargo, a mortgage lender with a security interest in a mineral lease, was solidarily liable with its borrowers (the mineral lessees) for a breach of the mineral lessees’ contractual and statutory obligations to produce in paying … Continue Reading

Plaquemines Parish Amends Petition for Damages In Coastal Zone Management Act Litigation

By Dana M. Douglas and Jonathan J. Fox on Posted in Environmental, Litigation, Louisiana Oil & Gas Law, Oil & Gas
The Parish of Plaquemines amended its petitions in two of the Coastal Zone Management Act (“CZMA”) cases on June 19, 2017.  Prior to the amendment of the petitions, Judge Clement sustained Defendants’ Exceptions of Vagueness in the two cases, namely: The Parish of Plaquemines v. Rozel Operating Co., et al. and The Parish of Plaquemines … Continue Reading

U.S. Fifth Circuit Greenlights Contribution Action for Purely Economic Damages Under Oil Pollution Act (OPA)

By Raymond T. Waid on Posted in Environmental, Litigation, Louisiana Oil & Gas Law, Maritime, Oil & Gas, Regulatory
In Settoon Towing, L.L.C. v. Marquette Transportation Company, L.L.C., No. 16-30459 (5th Cir. Jun. 9, 2017), the United States Fifth Circuit Court of Appeals held for the first time that a Responsible Party under the Oil Pollution Act of 1990 (“OPA”) has a statutory claim for contribution to recover purely economic damages from a partially … Continue Reading

Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

By Brittan J. Bush, Caleb J. Madere and Jamie D. Rhymes on Posted in Exploration and Production, Finance, Louisiana Mineral Law, Louisiana Oil & Gas Law, Oil & Gas, Oil & Gas Contracts, Royalty
In Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., the Louisiana Second Circuit upheld a trial court’s ruling that the holder of a security interest in mineral leases was solidarily liable for damages under the Louisiana Mineral Code stemming from its mineral lessees/mortgagors’ actions.[1] In the case, a landowner sued its mineral lessees for: (1) failure … Continue Reading

Louisiana Second Circuit Provides Clarity on Production in Paying Quantities and Affirms Lease Cancellation Under Mineral Code Article 140 for Failure to Pay Royalties

By Caleb J. Madere, Brittan J. Bush and Jamie D. Rhymes on Posted in Exploration and Production, Finance, Louisiana Mineral Law, Louisiana Oil & Gas Law, Oil & Gas, Oil & Gas Contracts, Royalty
On June 2, 2017 the Louisiana Second Circuit Court of Appeal affirmed a trial court’s judgment cancelling a mineral lease under Mineral Code article 140 and provided further clarity on a production in paying quantities analysis under Louisiana Mineral Code article 124.[1]  The dispute in Gloria’s Ranch, L.L.C. v. Tauren Exploration, Inc., arose from a … Continue Reading

U.S. Fifth Circuit Adopts Broad Definition of “Good Faith” for Louisiana Environmental Whistleblower Claims

By Devin C. Reid on Posted in Environmental, Exploration and Production, Industry News, Litigation, Louisiana Oil & Gas Law, Maritime, Oil & Gas, Pipeline, Regulatory
On June 1, 2017, the United States Fifth Circuit Court of Appeals in Borcik v. Crosby Tugs, L.L.C. applied a broad definition of the intent required of a plaintiff under the Louisiana Environmental Whistleblower Act.  In doing so, both the Fifth Circuit and the Louisiana Supreme Court apply a more plaintiff friendly standard to claims … Continue Reading

Casing Controversy: Does the Comparative Fault Codal Article Cover Contract Claims?

By Erin Bambrick and Elizabeth S. Wheeler on Posted in Exploration and Production, Louisiana Oil & Gas Law, Oil & Gas
In Justiss Oil Company, Inc. v. Oil Country Tubular Corp., et al, the Louisiana Third Circuit Court of Appeal joined its sister circuit –the Louisiana Fourth Circuit Court of Appeal, in finding that La. Civ. Code art. 2323 applies only to actions sounding in tort – not to actions in contract, such as redhibition.  In … Continue Reading

United States Supreme Court Limits Forums Available to Railroad Workers

By Devin C. Reid on Posted in Constitutional, Industry News, Litigation, Oil & Gas
The United States Supreme Court, in BNSF Railway Co. v. Tyrrell (May 30, 2017), declined to allow a personal injury plaintiff to sue a railroad company in a state in which the railroad does business but is not incorporated or headquartered.  In BNSF Railway Co., two plaintiffs brought suit for injuries in Montana “although the … Continue Reading

A Key Resource For Structuring Oil & Gas Joint Operations

By John T. Bradford on Posted in Oil & Gas, Tax
John Bradford’s article “Tax Planning for Oil and Gas Joint Operations”, originally prepared for the Rocky Mountain Mineral Law Foundation’s 2016 Special Institute on Joint Operations and the New AAPL Form 610-2015 Model Form Joint Operating Agreement, has been selected for publication by the University of North Texas Institute of Petroleum Accounting in its Petroleum … Continue Reading

U.S. Fifth Circuit Affirms Application of the Subsequent Purchaser Doctrine in Oilfield Contamination Case, Recognizes “Clear Consensus” Among Louisiana Appellate Courts, and Declines Certification to the Louisiana Supreme Court

By Elizabeth S. Wheeler, Kelly Brechtel Becker and Kathryn Zainey Gonski on Posted in Environmental, Legacy Litigation, Litigation, Louisiana Mineral Law, Louisiana Oil & Gas Law, Oil & Gas, Subsequent Purchaser Doctrine
In Guilbeau v. Hess Corporation, the United States Fifth Circuit Court of Appeals unanimously affirmed the application of Louisiana’s subsequent purchaser doctrine to bar a plaintiff’s claims for property damage resulting from alleged oilfield contamination that occurred prior to his purchase of the property.  The court specifically rejected the plaintiff’s attempt to characterize the multitude … Continue Reading

Leave It to the States: Oklahoma Federal Court Dismisses Fracking Suit In Favor Of Administrative Regulation

By Philip Dore on Posted in Environmental, Exploration and Production, Litigation, Oil & Gas, Regulatory
On April 4, 2017, a federal district court dismissed a citizen-enforcement action under the Resource Conservation and Recovery Act that could have profound impact on fracking suits against the oil and gas industry. In Sierra Club v. Chesapeke Operating, LLC, the Sierra Club alleged that the deep injection of liquid waste from oil and gas … Continue Reading

A Summary of Professor Jim Rossi’s Lecture on the “Federalism Battles in Energy Transportation”

By Liskow & Lewis on Posted in Constitutional, Environmental, Exploration and Production, Industry News, Louisiana Oil & Gas Law, Oil & Gas, Pipeline
Professor Jim Rossi’s lecture on “Federalism Battles in Energy Transportation,” specifically whether the federal or state government is the proper authority to exercise its eminent domain and regulatory power. … Continue Reading

Louisiana Second Circuit Addresses: (1) Creation of Mineral Servitudes Via Notarial Acts of Correction; (2) Obstacles Suspending the Prescription of Nonuse from Running Against Mineral Servitudes; and (3) Payment of Court Costs in Concursus Actions

By Brittan J. Bush on Posted in Exploration and Production, Litigation, Louisiana Mineral Law, Louisiana Oil & Gas Law, Mineral Servitudes, Oil & Gas, Oil & Gas Contracts, Property Law
In Petro-Chem Operating Co., Inc. v. Flat River Farms, L.L.C., the Louisiana Second Circuit addressed issues affecting the creation and preservation of mineral servitudes and payment of court costs in a concursus action.[1] In the case, an operator initiated a concursus action seeking to resolve ownership interest in minerals underlying property on which it was … Continue Reading
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