As it “is impossible to transfer rights to an assignee under an expired mineral lease,” in a case where oil, gas and mineral leases had expired prior to plaintiff’s acquisition of the property, the Louisiana Third Circuit Court of Appeal in Litel Explorations, L.L.C. v. Aegis Development Company, L.L.C., et al. affirmed dismissal of claims pursuant to the subsequent purchaser doctrine, which provides that the right to sue for property damage is a personal right that belongs to the landowner who owned the property at the time the damage occurred, unless the right has been explicitly assigned or subrogated to the subsequent purchaser of the land.
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Elizabeth S. Wheeler
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.
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(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 plaintiffs’ experts and the plaintiffs themselves should be consistent with ownership.
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Casing Controversy: Does the Comparative Fault Codal Article Cover Contract Claims?
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 doing so, the Third Circuit created an issue ripe for Louisiana Supreme Court decision.
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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
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 of relevant Louisiana appellate court rulings as a “mishmash of appellate jurisprudence,” noting instead that “a clear consensus has emerged among all Louisiana appellate courts that have considered the issue.”
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
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 Multiple Facilities – In some circumstances, biofuel producers can decrease the costs of production by processing feedstock at one facility and converting that material—called a biointermediary—into a biofuel at another facility.
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Tightening the Timeline for Original Condition: the First Circuit Denies Writ from Ruling Applying Subsequent Purchaser Doctrine to Dismiss Claims Against a Mineral Servitude Owner
In the watershed Corbello[1] decision, the Louisiana Supreme Court affirmed a $33 million award—the cost to restore property valued at $108,000 to its “original condition” after it was damaged by oil and gas operations. If Corbello pressed the accelerator on “legacy” litigation, Eagle Pipe tapped the brakes.
Continue Reading Tightening the Timeline for Original Condition: the First Circuit Denies Writ from Ruling Applying Subsequent Purchaser Doctrine to Dismiss Claims Against a Mineral Servitude Owner