Friday, January 16, 2015

UPDATE ON OILFIELD CONTAMINATION AND COASTAL EROSION CASES

By TONI ELLINGTON

On January 12, 2015, the U.S. District Court for the Eastern District of Louisiana issued a ruling favoring two oil and gas companies in an oilfield contamination case.  The case was filed against Chevron USA, Inc. and Exxon Mobil Corp. by a group of landowners, who claimed they damaged their properties by dredging canals for their drilling activities.

The plaintiffs claimed Chevron and Exxon Mobil were liable for canal backfilling and remediation, and that the companies had violated their drilling leases by allowing erosion and saltwater intrusion on the property.  Judge Vance disagreed.

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,   setting the state for 20 other similar suits filed by Plaquemines Parish and 7 suits filed by Jefferson Parish to be remanded to state court.  Judge Zainey also 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.

Central to all of these lawsuits are the oil and gas leases, which generally require that the operator restore the land to pre-drilling conditions after drilling ceases.  Arguments will arise as to whether the drilling operations have ceased on the respective properties.

For information, stay tuned to this blog, or call Toni Ellington at (504) 599-8500.

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