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Recently, the U.S. Commodity Futures Trading Commission (“CFTC”), the U.S. Prudential Regulators[1] and the European Supervisory Authorities (“ESAs”)[2] have offered limited relief from or guidance for relaxed enforcement of variation margin requirements for non-cleared swaps that take effect March 1, 2017.  This news follows reports that, despite all efforts, market participants are facing continued legal and operational challenges in implementing the requisite steps for timely compliance with the new margin regimes.  Still international regulators remain committed to moving non-cleared OTC derivatives to a collateralised model.
Continue Reading Derivatives: Non-Cleared Swaps Variation Margin Update – Limited Relaxed Enforcement by the CFTC, Prudential Regulators and European Supervisory Authorities

On November 10, 2016, Judge Ann Aiken, a federal district judge in Oregon, issued a remarkable environmental law decision in which she found that a climate system “capable of sustaining human life” is a fundamental constitutional right.[1] Juliana v. United States challenges the constitutionality of the United States’ decades-long policy on climate change.[2] The plaintiffs, a group of 21 children and young adults, sued the United States and various government officials[3] alleging that they have known for more than five decades “that the carbon dioxide produced by burning fossil fuels was destabilizing the climate system in a way that would ‘significantly endanger plaintiffs, with the damage persisting for millennia.’”[4] According to the plaintiffs, the defendants have failed to take necessary action to curtail fossil fuel emissions, and the government and its agencies “have taken action or failed to take action that has resulted in increased carbon pollution through fossil fuel extraction, production, consumption, transportation, and exportation.”[5]

Continue Reading Oregon Federal Court Issues Remarkable Decision Finding Constitutional Right to Stable Climate

In December of 2016, Republican John Kennedy won the United States Senate runoff election in Louisiana. On the campaign trail, Senator Kennedy promised to do his part in strengthening the declining oil and gas industry in Louisiana by easing restrictions imposed by the Obama Administration and fighting to bring back old jobs and create new ones in the energy sector. Now that President Donald Trump has taken office and Republicans control the United States House and Senate, Senator Kennedy has taken action.

Continue Reading Senator John Kennedy’s Letter to President Donald Trump: A First Step in Reviving the Oil & Gas Industry in Louisiana

Hours before a controversial set of new reporting requirements for government contractors was set to take effect, a federal court in Texas enjoined implementation of the requirements across the country.
Continue Reading New Government Contractor “Blacklisting” Reporting Requirements Put on Hold

On September 2, 2016, the Texas Supreme Court agreed to review three oil and gas cases involving issues pertinent to the industry and land and mineral owners.

  1. BP America Production Company v. Red Deer Resources, LLC

In BP America Production Company v. Red Deer Resources, LLC, the lessee of a top lease, Red Deer, sued the lessee of the base lease, BP, contending that the prior lease had terminated due to a cessation of production in paying quantities. 
Continue Reading Texas Supreme Court Agrees to Review Three Oil and Gas Cases in 2016

The dispute between Governor John Bel Edwards and Attorney General Jeff Landry over the retention of several private attorneys to represent the State of Louisiana, through the Department of Natural Resources (“LDNR”) in coastal loss litigation has taken a new twist.  These lawsuits were filed by several parish governments alleging dozens of oil and gas companies caused marsh loss by operations that violated state-issued coastal use permits and related permitting requirements. 
Continue Reading Attorney General Finds Governor’s Contract for Legal Services Not Approvable, Unacceptable, Illegal, and Unconstitutional

In recent years, offshore companies have witnessed a marked uptick in the number of enforcement actions undertaken by the Bureau of Safety and Environmental Enforcement (BSEE).[1]  Operators face more BSEE inspections, Incidents of Non-Compliance (INCs), and civil penalties than ever before.  Meanwhile, the average penalty amount has grown.  For example, in 2014 the agency imposed a civil penalty of $1,230,000—an unprecedented figure in the history of the BSEE civil penalty program. BSEE has also begun to target offshore contractors, who, until recently, have not faced exposure to agency enforcement actions.  See Island Operating Co., Inc., 186 IBLA 199 (2015).  Together, these developments will undoubtedly lead to more litigation and a higher cost of doing business on the Outer Continental Shelf.

Continue Reading Offshore Companies Face Surge in BSEE Enforcement Actions and Penalties

The oil and gas industry has a significant and far reaching economic impact in Louisiana. According to one 2014 study, the total direct and indirect impact on the state is approximately $73.8 billion.[1] Taxes make up a large part of the industry’s direct economic impact in Louisiana: In 2013, the industry paid nearly $1.5 billion in taxes to the State, about 14.6% of the total taxes, licenses and fees collected that year.[2] A large chunk of the taxes paid by oil and gas companies are severance taxes, which are levied on the production of natural resources taken from private and public land or water bottoms within the territorial boundaries of the state.[3] Natural resources might include, for example timber, minerals like oil and gas, coal, salt, or sulphur. Overall, collections on oil and gas amount to nearly 92% of all severance tax collections in the state.[4]
Continue Reading Louisiana Department of Revenue Targets Energy Companies in Rash of Oil Severance Tax Audits

Finding new customers and growing sales and market share are the Holy Grail.  One way to achieve these objectives is to hire talented sales professionals or managers from competitors.  These individuals already know the market and have relationships with potential new customers.
Continue Reading Navigating Non-Compete and Other Key Talent Issues: A Primer for Employers

This is Part II of our TSCA update following the recent changes to the TSCA legislation.

On June 29, 2016, the U.S. Environmental Protection Agency (“EPA”) released its first year implementation plan for the recently-enacted amendments to the Toxic Substances Control Act (“TSCA”).  Faced with the ambitious requirements and timeframes laid out by the Frank R. Lautenberg Chemical Safety for the 21st Century Act (the “Act”), EPA has planned out its implementation activities during the first year. The agency divided up actions into four categories: Immediate Actions, Framework Actions, Early Mandatory Actions, and Later Mandatory Actions (beyond the first year of implementation).
Continue Reading EPA Biting Off More Than It Can Chew? Agency Publishes First Year Implementation Plan for New TSCA Legislation