Century Exploration New Orleans LLC has filed a petition with the U.S. Supreme Court seeking review of additional oil spill response requirements added to its lease in the wake of the Deepwater Horizon spill. Century claims the requirements, if allowed to stand, would give the government free reign to impose new requirements or conditions on existing oil and gas leases.
The case was originally filed in the U,S. Court of Federal Claims. Century and its joint venture partner Champion Exploration LLC allege that the changes caused the bond requirements for an existing lease to increase from $35 million to $150 million. They claim that these requirements made development of their Gulf of Mexico lease commercially impractical.
For updates on the Supreme Court's action on this petition, check this blog, or call (504)-599-8500.
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