Monday, February 9, 2015

COURT DISMISSES CLAIMS AGAINST OIL AND GAS COMPANIES FOR ALLEGED PROPERTY DAMAGE IN PLAQUEMINES PARISH FROM HISTORIC OPERATIONS

By TONI ELLINGTON

On February 4, 2015, the U.S. District Court for the Eastern District of Louisiana dismissed most of the remaining claims against several oil and gas companies for property damage in Plaquemines Parish from historic oil and gas operations.  The case, Catherine P. Alford, et al. v. Chevron USA Inc., et al., No. 2:13-cv-05457, is one of a number of cases filed by Plaquemines Parish property owner for damages to their properties.

The ruling was the second time the motions to dismiss by the defendants have been heard.  In January, U.S. District Judge Sarah Vance dismissed some of the plaintiffs’ claims, including claims for canal backfilling and remediation.  The plaintiffs claimed that the defendant oil and gas companies violated their drilling leases by failing to use best practices to prevent future erosion and saltwater intrusion into the canals.  The case arose under mineral leases dating back to the 1950s.  Judge Vance found that the leases and applicable Louisiana law only required the defendants to use the leased property as reasonably prudent operators.  This is not the same as employing “best practices,” according to the court.

Plaintiffs in the case are Plaquemines Parish property owners Catherine P. Alford, River Realty, LLC, Citrus Realty, LLC, Leander H. Perez, III, Paula Perez Landrem, Thomas A. Carrere, Richard J. Carrere, Jr., James Carrere, and Margaret Perez Barton.  Defendants are Anadarko E & P Onshore, LLC, BP America Production Company, Chevron USA Holdings, Inc., Chevron USA, Inc., Four Star Oil and Gas Company, French Gulf Coast Partners, Gulf Oil Corporation, Hilcorp Energy LP, and Pan American Petroleum Corporation.  Following the ruling this week, the plaintiffs’ only remaining claim is a claim against BP American Production Company under article 11 of the Louisiana Mineral Code.

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