Archives: Pipeline

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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

President Biden Faces Constitutional Challenges to Revocation of Keystone XL Permit

During his first  hours in the Oval Office, President Biden issued Executive Order 13990, entitled “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis.” Section 6 of the Order revoked TransCanada Keystone Pipeline, L.P.’s March 2019 permit to construct and operate cross-border pipeline facilities at the U.S.-Canada border in Montana. This … 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

U.S. DEPARTMENT OF INTERIOR ISSUES 60-DAY MORATORIUM ON FEDERAL LEASING AND DRILLING PERMITS

Following through with President Biden’s campaign promise to halt oil and gas drilling on federal lands, on January 20, 2021, the Acting Secretary of the U.S. Department of Interior (“Interior”) issued an order, effective immediately, mandating a 60-day moratorium on new oil and gas leases and drilling permits on public lands and waters (“Order”).… Continue Reading

Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Bureau of Ocean Energy Management (“BOEM”) and the Bureau of Safety and Environmental Enforcement (“BSEE”) recently issued a proposed rule on Risk Management, Financial Assurance and Loss Prevention (“Proposed Rule”), which was published in the Federal Register on October 16, 2020 and is now open for public comment. The Proposed Rule is the result … Continue Reading

Louisiana Third Circuit Decision Imposes Damages for Due Process Violation on Private Company

On July 15, 2020, The Third Circuit Court of Appeals issued an opinion awarding damages for a violation of due process rights against a private pipeline company.  Bayou Bridge Pipeline, LLC v. 38.00 Acres, More or Less, Located in St. Martin Parish, et al.[1] (“Bayou Bridge”) centers around the construction of a crude oil pipeline … Continue Reading

DOI Announcement of a Proposed Rule on Risk Management, Financial Assurance and Loss Prevention

The long-awaited proposed changes to the Department of Interior’s Financial Assurance Rule (“Proposed Rule”) were finally announced yesterday by the Trump Administration.  The announcement provides, among other things, that the proposed rulemaking is in efforts to clarify, streamline and provide greater transparency to the financial assurance requirements (e.g., supplemental bonding) for OCS lessees and grant … Continue Reading

U.S. Fifth Circuit Clarifies “Substantial Nexus” Test for LHWCA

In Mays v. Chevron Pipe Line Co., 2020 WL 4432025, a three-judge panel of the United States Fifth Circuit Court of Appeal held on August 3, 2020, that the Longshore Harbor Workers’ Compensation Act may apply to an injury in state territorial waters if there is a substantial nexus between an employee’s injury and his … 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

Federal Offshore Pipeline Decommissioning in BOEM Significant Sediment Resource Areas

In recent years, there has been an increase in the number of denials of applications to decommission offshore pipelines in place in a departure from the Bureau of Safety and Environmental Enforcement’s (“BSEE”) longstanding practices.  The denials are accompanied by an order from BSEE to decommission the pipelines by removal, with reference to Notice to … Continue Reading

Texas Supreme Court Decides Energy Transfer Partners v. Enterprise Products

The Texas Supreme Court issued an opinion today in Energy Transfer Partners, L.P v. Enterprise Products Partners, L.P., a case previously featured on the Blog.  This case began in 2011 when ETP and Enterprise explored the possibility of partnering to modify and extend, or construct anew, a pipeline to transport oil southbound from Cushing, Oklahoma.… Continue Reading

OSHA Awards Damages for Retaliatory Discharge of Jones Act Seaman in Violation of Seaman’s Protection Act

In a stark reminder of the sanctity of Coast Guard investigations, and the consequences of impeding such investigations, the U.S. Department of Labor’s Occupational Safety and Health Administration (“OSHA”) recently took action against a maritime employer for allegedly retaliating against a seaman who cooperated with the Coast Guard in connection with its investigation of a … Continue Reading

Texas Supreme Court to Review $500 Million Verdict in Case Involving Formation of Partnership to Construct Crude Oil Pipeline

Last week the Texas Supreme Court granted review in Energy Transfer Partners, L.P. v. Enterprise Products Partners, L.P., a case concerning Texas partnership law.  Energy Transfer Partners has garnered significant amicus support on both sides of the “v.” and has been closely followed by the energy industry.… Continue Reading

City of New Orleans Sues Oil and Gas Companies for Allegedly Damaging Coastal Wetlands

On Friday, March 29, 2019, the City of New Orleans filed a lawsuit in Civil District Court against eleven oil and gas companies seeking damages for alleged harm to Louisiana’s coastal wetlands. Introducing its lawsuit with statements that “New Orleans is imperiled” and its “people are in danger,” the City contends that the defendants’ failure … Continue Reading

Expropriation ruling explains landowner’s burden to prove severance damages to a “legal certainty.”

On November 8, the Louisiana First Circuit Court of Appeals added to the relatively sparse body of appellate rulings in pipeline expropriation matters. In an unpublished opinion, the court affirmed that landowners whose property is expropriated must prove their entitlement to severance damages to a “legal certainty.” Under Louisiana law, owners of expropriated property can … Continue Reading

Louisiana Supreme Court Upholds Expropriation of Commercial Venture

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

(Plaintiffs Claiming) Trespass Beware

In Chauvin v. Shell Oil Company, the Louisiana Fifth Circuit Court of Appeal affirmed the judgment of the trial court granting summary judgment to defendants on Plaintiffs’ trespass action.  In doing so, the Fifth Circuit made clear that to succeed on a trespass claim when the contracts at issue are ambiguous, parole evidence from the … Continue Reading

Federal Court Finds A Continuing Duty Under Louisiana Law To Prevent The Erosion of Pipeline Canals

A recent decision from the Eastern District of Louisiana provides a mixed bag for pipeline companies or others whose operations involve canals.  Significantly, the decision from Judge Milazzo holds that during the existence of a right-of-way/servitude, Louisiana servitude law imposes a continuing duty to prevent canals from expanding and widening over time, unless unambiguous contractual … Continue Reading

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

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

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

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

FERC Rejects Sierra Club’s Request for Rehearing and Green Lights $3.5B LNG Export Facility in Lake Charles, Louisiana

On November 23, 2016, the Federal Energy Regulatory Commission (FERC) confirmed its authorization of the construction of a $3.5 billion liquefied natural gas (LNG) export facility in Lake Charles, Louisiana and rejected the Sierra Club’s request for rehearing on the matter. In an April 15, 2016 Order, FERC authorized Magnolia LNG, LLC to site, construct, … Continue Reading

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 … Continue Reading

Expropriated Servitudes: They Aren’t Going Away Anytime Soon

The Third Circuit recently released an unpublished opinion making clear that when a pipeline company expropriates a servitude, the servitude is “perpetual,” and a Court cannot impose a term on that servitude.  The Third Circuit also held that a landowner must prove any damages over and above the fair market value of the property, and … Continue Reading
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