COURT RULES THAT 1978 LOUISIANA LAW GIVES PARISHES THE BASIS TO FILE SUIT AGAINST OIL AND GAS COMPANIES FOR COASTAL DAMAGE

By TONI ELLINGTON 

On December 1, 2014, U.S. District Court Judge Jay Zainey of the Eastern District of Louisiana ordered that one of the lawsuits filed by Plaquemines Parish for coastal erosion and damage from drilling operations must be remanded o the 25th Judicial District Court in Plaquemines Parish.  The ruling was considered a setback for the oil and gas industry defendants.  It also sets the stage for 20 other similar suits filed by Plaquemines Parish and 7 suits filed by Jefferson Parish to be remanded to state court.

In addition, Judge Zainey found that Plaquemines Parish had authority to file the lawsuit under the Louisiana State and Local Coastal Resources Management Act of 1978, which gives parishes the authority over actions which occur within parish borders.  The Louisiana State and Local Coastal Resources Management Act, La. R.S. 49:214.21, et seq., was enacted to protect, develop, and where feasible, restore or enhance the resources of the state’s coastal zone.  According to information found on the Louisiana Department of Natural Resources website on the Act, the intent of the law is to encourage multiple uses of resources and adequate economic growth while minimizing adverse effects of one resource on another without imposing undue restrictions on any users.  Once a Louisiana coastal parish receives federal and state approval, the parish becomes the permitting authority for coastal uses of local concern, which are defined as those uses which directly and significantly affect coastal waters.  La. R.S. 49:214.25 (A)(2).

Ten coastal parishes in Louisiana have approved active coastal plans under the Act:  Calcasieu, Cameron, Lafourche, Jefferson, Orleans, Plaquemines, St. Bernard, St. James, St. Tammany, and Terrebonne.

At the time the Louisiana State and Local Coastal Resources Management Act was passed in 1978, the law was opposed by the oil and gas industry.  The Act requires oil and gas companies to clear, revegetate, detoxify, and restore the land as nearly as practicable to its original condition.  According to the parish lawsuits, none of the oil and gas companies operating in the coastal areas have filed permits indicating that they have restored the land.

The lawsuits were filed in November 2013 by Plaquemines and Jefferson Parishes.  The parishes claim that the oil and gas companies caused damage to the coastal areas and wetlands when they built canals through the wetlands.  They claim that the oil and gas companies and their contractors ignored state laws that required coastal lands used for drilling to be maintained and eventually restored to the original condition.  As a result, the parishes claim that the oil and gas companies’ actions have caused significant coastal erosion and contamination of coastal waters and lands.

According to some experts, approximately 1,900 square miles of Louisiana coastal land has eroded into the Gulf of Mexico, placing New Orleans and the surrounding areas in danger of collapse and destruction from hurricanes.  The parishes seek to have the defendant companies either pay for the damages or restore the lands and remove the toxic wastes left behind from drilling operations.

For more information on this important litigation, stay tuned to this blog or contact Toni Ellington at (504) 599-8500.