The Parish of Plaquemines’ coastal erosion lawsuit against Louisiana energy companies may be headed back to state court after a federal judge ruled that defendants failed to show the case merits federal jurisdiction.
Judge Martin Feldman handed down the opinion Jan. 11 in the Western Eastern District of Louisiana. The Plaquemines lawsuit is one of 42 legal claims against oil and gas firms that allege past drilling and dredging activities have led to the loss of Louisiana coastal land as well as increased pollution.
The litigation alleges energy companies violated Louisiana’s State and Local Coastal Resources Management Act (SLCRMA) as a result of oil and gas exploration, production and transportation in the region.
Feldman emphasized that his opinion was not related to the merits of the case but to whether the oil companies’ legal arguments justified trying the case in federal rather than state court.
“The voluminous record in this case demonstrates that the oil industry in WWII was intensely regulated,” he wrote. “... (But defendants) have failed to demonstrate that their compliance entitles them to the removal provisions of this statute. In order to remove, defendants must show that they were ‘acting under’ the direction of a federal officer. The court finds that they were not.”
The energy companies have argued that prior to the enactment of the SLCRMA in the 1970s, they were subject to exclusive federal oversight in their activities in coastal Louisiana.
A spokeswoman for the attorneys representing BP America Production Co. Chevron, ConocoPhillips, Exxon Mobil Corp. and Shell said Feldman’s decision would not be the final word on the jurisdiction issues.
“Defendants appreciated the opportunity to present their case to the court …” Melissa Landry said in an email to the Louisiana Record. “We are reviewing the order and are planning a prompt appeal.”
The Louisiana Mid-Continent Oil and Gas Association (LMOGA) and the Louisiana Oil & Gas Association (LOGA) said in a joint statement that their past activities have been conducted in a legal manner.
“In whichever court these cases proceed, they should face significant challenges,” LMOGA President Tommy Faucheux and LOGA President Mike Moncla said in a statement emailed to the Record. “With these baseless claims, plaintiffs’ lawyers are seeking to reach back in time and impose liability on an entire industry for conducting activities that were conducted lawfully and created countless jobs and other economic benefits for communities across the state and nation.”
The two presidents characterized the coastal erosion litigation as a waste of taxpayer funds and judicial resources.