Energy Law

Louisiana Supreme Court Holds that Act 136 of the Mineral Code is Inapplicable to Remediation Suits

Posted on October 23, 2009
By Matt Simone In Broussard v. Hilcorp Energy Co., the Louisiana Supreme Court held that a plaintiff is not required, pursuant to Article 136 of the Louisiana Mineral Code, to provide a defendant with pre-suit written notice and an opportunity to perform prior to a judicial demand for property restoration related to oil and gas production contamination...

Fifth Circuit Holds that Individual Citizens Have Standing to Sue Energy Companies for Global Warming

Posted on October 22, 2009
By April Rolen-Ogden In Comer v. Murphy Oil, the Fifth Circuit left open the possibility that the oil and gas industry may be privately sued for alleged contributions to global warming. In this putative class action lawsuit, Plaintiffs claimed that the defendants' operation of energy, fossil fuels, and chemical industries in the United States contributed to global warming...

Fifth Circuit Royalty Decision Stands -- Supreme Court Denies Cert

Posted on October 05, 2009
The United States Supreme Court has denied the Petition for Certiorari filed by the United States Department of the Interior in Kerr-McGee Oil & Gas Corp. v. U.S. Dep't of the Interior, 554 F.3d 1082 (5th Cir. 2009). The high court's refusal to consider Interior's appeal allows the Fifth Circuit's January 2009 decision to stand...

New Permit Requirements for Hydraulic Fracturing of the Haynesville Shale

Posted on September 29, 2009
By Stephen Weigand The Shreveport Times reports that federal authorities have added additional permit requirements for companies who pump water from the Red River for hydraulic fracturing of the Haynesville Shale. The requirements were added after the U...

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Caddo Parish Commissioners Approve Ordinances Affecting Oil and Gas Operations

Posted on September 22, 2009
By Matthew Simone After seven months of discussion and postponement, Caddo Parish Commissioners approved new regulations affecting oil and gas operations. These regulations involve three directives. First, loud operations within five hundred feet of hospitals, residences, religious, commercial, or public buildings in urban areas, may only take place Monday through Saturday between 8 A...

White House Wants to End Royalty-in-Kind Program

Posted on September 17, 2009
by Elisabeth Lorio Baer Interior Secretary Ken Salazar informed Congress on September 17, 2009 that he would kill a controversial program, currently in effect, that allows energy companies to pay the government royalties for drilling on public lands in actual oil and gas in lieu of cash...

The Tiber Prospect Well: BP Makes Giant Oil Discovery Deep in the Gulf

Posted on September 04, 2009
By Kerry Murphy On Wednesday September 2, BP drilled the world's deepest oil well – the Tiber Prospect Well – and discovered a huge pool of crude oil. The Tiber well is located in the western Gulf of Mexico, southwest of New Orleans in U.S...

Local Louisiana tax assessor files 29 additional lawsuits against "big oil" companies alleging underpayment of millions in ad valorem taxes

Posted on August 21, 2009
By Emma J. Hinnigan This entry updates an earlier blog entry posted on May 4, 2009, discussing two lawsuits filed by the tax assessor for Terrebonne Parish against Burlington and LL&E for alleged underpayment of property taxes. The attorneys responsible for filing these lawsuits have held true to their promise that the lawsuits would be the first of many...

First Circuit Holds That Common Carrier Cannot Expropriate Private Property to Perform Routine Service and Maintenance on its Ethylene Pipeline

Posted on July 28, 2009
By Emma J. Hinnigan In ExxonMobil Pipeline Co. v. Union Pacific Railroad Co., 08-2347 (La. App. 1. Cir. 5/13/09), the First Circuit held that ExxonMobil was not entitled to expropriate land owned by Union Pacific because the expropriation was not for a public purpose...

Caddo Parish Commissioners Postpone Decision on Oil and Gas Ordinances

Posted on July 10, 2009
by Elisabeth Lorio Baer Despite the urging of Caddo Parish property owners to pass regulating ordinances and appeals from the oil and gas industry to leave regulation to other governing bodies, Caddo Parish commissioners decided to postpone the passage of oil and gas ordinances on Thursday...

States Challenge Attempted Federal Power Grab in Hydraulic Fracturing Issue

Posted on June 18, 2009
By Emma J. Hinnigan On June 10, 2009, the Interstate Oil and Gas Compact Commission (IOGCC) reaffirmed its strong stance that the states remain best positioned to regulate the use of hydraulic fracturing for the production of oil and natural gas. The IOGCC's response comes on the heels of two bills introduced in the House and the Senate calling for the repeal of the exemption of hydraulic fracturing from the Safe Drinking Water Act (SDWA), which would effectively give the federal government jurisdiction over the regulation of the technology...

Fifth Circuit remands case regarding lessee's breach of a settlement agreement

Posted on June 11, 2009
By Jessica Gladney The Fifth Circuit recently reversed the district court's grant of partial summary judgment in Dore Energy Corp. v. Prospective Investment & Trading Co. Ltd., No. 08-30186 (5th Cir. 5/28/09). The dispute in Dore centers on the interpretation of a 2002 settlement agreement between the parties to certain mineral leases in Cameron Parish...

Fifth Circuit Reverses, Allows Texas to Intervene in Cy Pres

Posted on June 02, 2009
By Marie Carlisle On May 28, 2009, the Fifth Circuit decided In the Matter of: Lease Oil Antitrust Litigation, case no. 08-40230, reversing the District Court's denial of the State of Texas' motion to intervene in a matter concerning unclaimed settlement money from the oil antitrust action...

Louisiana Fourth Circuit Court of Appeals Affirms Denial of Class Certification in Alleged Chemical Expose Case

Posted on May 20, 2009
By Jessica Gladney In Thomas v. Mobil Oil Corp., No. 2008-0541 (La. App. 4 Cir. 3/31/09), the Fourth Circuit affirmed the trial court's denial of class certification against the defendants, Exxon Mobil Corporation and Chalmette Refining, L.L.C. The proposed class consisted of approximately 7,000 claimants from Algiers and St...

Louisiana Fourth Circuit Court of Appeals Affirms Denial of Class Certification in Alleged Chemical Exposure Case

Posted on May 20, 2009
By Jessica Gladney In Thomas v. Mobil Oil Corp., No. 2008-0541 (La. App. 4 Cir. 3/31/09), the Fourth Circuit affirmed the trial court's denial of class certification against the defendants, Exxon Mobil Corporation and Chalmette Refining, L.L.C. The proposed class consisted of approximately 7,000 claimants from Algiers and St...

Local Louisiana tax assessor files suit against oil companies alleging underpayment of millions in ad valorem property taxes

Posted on May 14, 2009
"Coastal Parishes v. Big Oil" is the name of the website addressing the lawsuit just filed in federal court against Burlington & LL&E, for property taxes on equipment that is in onshore coastal waters as well as offshore waters within the three mile territorial limit...

Louisiana Legislature Considers Bill to Allow State to Pay Attorneys Using Contingency Fee Arrangement

Posted on May 08, 2009
By Kelly Becker  The Louisiana legislature is currently considering House Bill 758 which would allow the Attorney General to pay up to a twenty-five percent contingency fee to outside attorneys to represent the State in litigation. Several industry groups, including the Louisiana Association of Business and Industry and the Louisiana Oil and Association, oppose the bill on the basis that it would lead to 'frivolous' suits and target certain industries within the State...

Drilling Regulations for Haynesville Shale to be Discussed

Posted on May 04, 2009
By Jacob Credeur The Caddo Parish Commission is preparing for a public hearing on May 21 where it is set to discuss proposed drilling regulations for operators in the Haynesville Shale. The commission is working on the set of ordinances in committee discussions and is seeking to acquire public input before taking action...

D.C. Circuit Vacates Interior's Five-Year Leasing Program

Posted on April 28, 2009
By Jessica Gladney In Center for Biological Diversity v. U.S. Department of the Interior, the United States Court of Appeals for the District of Columbia Circuit issued a ruling on April 17, 2009 vacating the Department of the Interior's statutorily-mandated five-year offshore oil and gas leasing program for the period 2007-2012...

Texas Supreme Court Sends Parties to Arbitration in JOA Dispute

Posted on April 20, 2009
By Natalie Barletta The Texas Supreme Court in, In re Gulf Exploration, LLC, No. 07-0055 (Tex. Apr. 17, 2009), addresses when mandamus relief is available in connection with an order compelling arbitration. In this case, several working interest owners sued Great Western Drilling, their operator, claiming an opportunity to participate in wells drilled by Great Western...

A premises owner can still be a statutory employer in Texas, at least for now

Posted on April 06, 2009
 By Andrew Wooley: The Supreme Court of Texas issued a decision on rehearing in Entergy Gulf States, Inc. v. Summers April 3, 2009. The court's original unanimous decision in August 2007 that a Texas premises owner can be a statutory employer for workers' compensation purposes produced a great deal of political heat and a flurry of amicus briefs; so much so that the court departed from its normal practice and entertained oral argument on the motion for rehearing...

Haynesville Shale Scores Big Despite Low Gas Prices

Posted on March 31, 2009
By Jacob Credeur A recent article in the Shreveport Times indicates that payouts from the Haynesville Shale formation are leaving even the biggest players surprised. Even though Petrohawk Energy, Chesapeake, and other producers are scaling back production activity nationally because of reduced demand for natural gas, many producers are ramping up their activities in North Louisiana...

Texas Supreme Court Decides Miesch Case

Posted on March 30, 2009
By Everard Marseglia: Last Friday, the Supreme Court of Texas issued decisions in two companion cases, No. 05-1076; Exxon Corp., et al. v. Emerald Oil & Gas Co., et al. ('Miesch'), and No. 05-0729; Exxon Corp., et al. v. Emerald Oil & Gas Co. ('Emerald')...

Demand Falls for Offshore Leases; Economy, Policy Shifts Reflected in Bids

Posted on March 23, 2009
By Katie Cambre As reported in the Louisiana Mid-Continent Oil & Gas Association Daily News Summary, a federal auction of drilling tracts in the central Gulf of Mexico drew far fewer bids at much lower prices than during past auctions, and analysts attributed the decline to a poor economy and new energy policies proposed by President Barack Obama...

Texas Court of Appeals Affirms Lease Termination and Rejects Summary Judgment on Adverse Possession Claim

Posted on March 16, 2009
By Marie Carlisle In Sun-Key Oil Co., Inc. v. Ernest Cannon & Moncrief Minerals P'ship, L.P., the Eleventh Court of Appeals in Eastland affirmed the District Court's judgment granting summary judgment in favor of a lessor's lease termination claim based on cessation of production and denying Sun-Key Oil Company's motion for summary judgment on its affirmative defense of adverse possession stating that Sun-Key had failed to present detailed evidence establishing its use of the property and the elements of its adverse possession claims...

U.S. Treasury Secretary Attacks Tax Breaks for Oil & Gas Companies

Posted on March 13, 2009
By Emma Hinnigan U.S. oil and natural gas producing companies should not receive federal subsidies in the form of tax breaks because their businesses contribute to global warming, U.S. Secretary Timothy Geithner said when speaking to Congress on March 4, 2009...

Interior Considers Appeal of Kerr-McGee Decision

Posted on March 12, 2009
By Jason Johanson On Friday, March 6, 2009, Interior Secretary Ken Salazar stated that the agency is considering an appeal to the United States Supreme Court of the decision in Kerr-McGee Oil & Gas Corp. v. U.S. Department of the Interior, __ F...

Location Matters in Purchasing Real Property

Posted on March 02, 2009

Elections to Participate in Proposed Operations are Non-Revocable

Posted on March 02, 2009

Louisiana Third Circuit Holds Land Damages Cases Improperly Cumulated

Posted on February 20, 2009
By Jessica Gladney In Broussard v. Hilcorp Energy Corp., 08-233, 2008 WL 5158887 (La. App. 3 Cir. 12/10/08) the plainiffs owned five separate and incongruous tracts of land located in three sections in Vermilion Parish, Louisiana. Mineral, surface, and subsurface leases on the various properties have been granted to seven separate entities for oil and gas operations on the property...

Proposed Oil and Gas Laws for Northern Louisiana May Be Ready Soon

Posted on February 18, 2009
Shreveport and Bossier City as well as Caddo and Bossier parishes have been working on a comprehensive set of ordinances to give local governments leverage in controlling drilling in the Haynesville Shale natural gas field. Most of this oversight now lies with the state...

Energy Incentives Included in Stimulus Package

Posted on February 18, 2009
The American Recovery & Reinvestment Act of 2009, signed into law yesterday by President Obama, includes several key provisions for the energy industry including $20 billion in tax incentives and $30 billion in spending for certain renewable energy plans...

Fifth Circuit Recognizes Gas Purchaser's Right to Cancel Contract Due to Title Dispute

Posted on February 17, 2009
By Sarah Steward-Lindsey In Flint Hill Resources, LP v. JAG Energy, Inc., No. 08-20152, ___ F.3d ___, 2009 WL 336129 (5th Cir. Feb. 12, 2009), a panel of the United State Court of Appeals for the Fifth Circuit heard an action arising from a contract to supply natural gas condensate in south Texas...

Secretary Salazar Details Strategy for Comprehensive Energy Plan on OCS

Posted on February 12, 2009
On February 10, 2009, United States Secretary of the Interior Ken Salazar detailed a four-part strategy to establish a comprehensive offshore energy plan. First, Salazar extended the public comment period on President Bush’s OCS plan by an additional 180 days...

Gulf of Mexico Lease "Price Threshold" Conditions Held Unlawful

Posted on January 16, 2009
A unanimous panel of the United States Court of Appeals for the Fifth Circuit has held that the United States Department of the Interior violated the Outer Continental Shelf Deep Water Royalty Relief Act (“RRA”) by imposing price threshold conditions that require federal lessees to pay royalties when commodity prices rise...

Texas Supreme Court interprets pooling clause in mineral lease

Posted on January 06, 2009
By Sarah Steward-Lindsey   On November 21, 2008, the Supreme Court of Texas decided that a mineral owner’s participation in a validly pooled unit did not cease simply because the lease of that interest terminated.  Because the unit continued, it was proper to account for production and costs on a unit-wide basis, and because termination of the lease did not necessarily extinguish the equitable right of reimbursement for improvements on the premises, the Court remanded for a determination of whether there were any “facts not appearing in the record” that would justify denying the operator the right to recoup drilling costs incurred before the lease terminated...

Oil and Gas Operators are Not Entitled to Reimbursement of Production Expenses from Unleased Landowners - Caldwell Lands, Inc. v. Cedyco Corp., 2007-1515 (La. App. 3rd Cir. 4/2/08), 980 So. 2d 827

Posted on December 29, 2008
by April Rolen-Ogden This case involved a suit by an unleased landowner against an oil and gas unit operator seeking unpaid production proceeds. The landowner owned a portion of a small tract of property, which was included in an oil and gas production unit that was apparently being operated by the defendant, Cedyco...

Louisiana Second Circuit Court of Appeal Dismisses Claim for Unjust Enrichment for Receipt of Royalty Payments in Excess of Ownership Interest: Hall v. James, 43,263-CW (La. App. 2 Cir. 6/4/08), 986 So. 2d 817

Posted on December 22, 2008
pOn July 12, 1996, the Jameses purchased immovable property from Gray Investments, a corporation owned by Leon Gray, Sr. and his wife, Mary Gray.nbsp;The deed conveyed to the Jameses one-half of the royalties and mineral interests in the property and reserved the other one-half to Gray Investments...

Fifth Circuit Affirms decision to hold assignor solidary liable on Joint Operating Agreement: Chieftain Int'l (U.S.), Inc., Hunt Chieftain Dev., L.P.. Hunt Oil Co. v. Southeast Offshore, Inc.

Posted on December 22, 2008
pby Elisabeth Lorio/p pThe United States Court of Appeals for the Fifth Circuit recently affirmed the United States District Court for the Eastern District of Louisianarsquo;s decision to grant partial summary judgment in favor of the operator co-owner in a dispute over liability after a fellow co-ownerrsquo;s assignment of lease interests governed by joint operating agreements (JOAs)...

Louisiana Department of Natural Resources earns $3.5 million at November mineral lease sale

Posted on December 03, 2008
Despite the current problems facing the national economy, Louisiana collected $3.5 million at its mineral lease sale in November, which State Mineral Board Director Marjorie McKeithan describes as “showing interest [that] leasing Louisiana mineral rights for energy production is still strong...

THE LOUISIANA SUPREME COURT MODIFIES ITS OPINION IN M.J. FARMS, LTD. V. EXXON MOBIL CORPORATION

Posted on September 25, 2008
By Anundra M. Dillon   As previously reported, the Louisiana Supreme Court held that Act 312 of 2006 is constitutional and reversed the district court’s judgment declaring Act 312 unconstitutional and unenforceable under La. Const. art. V, § 16, La...

5th Circuit Stands Firm on Application of OCSLA

Posted on September 24, 2008
by John Almy. Grand Isle Shipyard Inc. v. Seacor Marine, LLC (5th Cir. 2008)   The 5th Circuit reversed a Louisiana District Court decision that held a platform worker’s injuries, sustained while being transported from platform to platform by vessel, were subject to the Louisiana Oilfield Anti-Indemnity Act through the Outer Continental Shelf Lands Act (OCSLA)...

U.S. House of Representatives Passes Energy Bill

Posted on September 23, 2008
The U.S. House of Representatives passed Speaker Pelosi’s Energy Bill, H.R. 6899, titled “Comprehensive American Energy Security and Consumer Protection Act.” Title I addresses the existing moratoria, future OCS access, exploration, production and royalty questions...

Haynesville Shale EXPO

Posted on September 23, 2008
by:  April L. Rolen-Ogden Currently, the talk of the town in North Louisiana is the “Haynesville Shale.” Experts describe this mineral formation “as one of the richest fields of natural gas ever discovered in this region.” Technically speaking, the Haynesville Shale is defined as “a layer of sedimentary rock more than 10,000 feet below the surface...

Maxwell v. Kerr-McGee: Tenth Circuit Upholds Right Of MMS Auditor To Bring Qui Tam Action

Posted on September 12, 2008
By Jonathan Hunter: In a highly anticipated decision, the Tenth Circuit held this week that the district court had subject matter jurisdiction over a qui tam action filed by an MMS auditor concerning royalty payments on crude oil produced from offshore federal leases...

EPA Self-Audit Policy Goes Online; Gives "Clean Start" to New Owners

Posted on September 05, 2008
The Environmental Protection Agency announced several updates to its Audit Policy this month that promise to make the system more convenient for users and more forgiving for new owners of regulated facilities.        Since 1995, EPA’s Audit Policy has given incentives including reduced civil penalties and a recommendation of no criminal sanctions to companies that self-disclose environmental violations...

Texas Supreme Court decides Garza case

Posted on August 30, 2008
The Texas Supreme Court this morning issued its long-awaited decision in Coastal Oil & Gas Corp. v. Garza Energy Trust, holding that the rule of capture bars recovery for damages for subsurface trespass caused by hydraulic fracturing. A concurring opinion and an opinion concurring in part and dissenting in part were also filed...

The Haynesville Shale

Posted on August 04, 2008
In March 2008, several oil and gas companies announced the finding of what could potentially be the fourth largest deposit of natural gas in the world underneath northwestern Louisiana, southwestern Arkansas, and eastern Texas: the Haynesville Shale...

DuPont and ConocoPhillips Settle Environmental Clean-Up Claims against U.S. Government for $52M

Posted on July 16, 2008
                     In 1997, DuPont and ConocoPhillips sued the United States pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), alleging entitlement to reimbursement of costs expended cleaning up hazardous waste from fifteen sites previously owned by the government during World Wars I and II, and the Korean War...

New Bill Prohibits Louisiana Employers from Preventing Employees from Carrying Firearms onto Employer Property if Firearm is in Locked Private Vehicle

Posted on July 15, 2008
           Effective August 15, 2008, employers will no longer be able to prevent employees from carrying firearms onto employer property if those firearms are in locked, privately-owned vehicles.  The change is the result of Senate Bill 51, which was sponsored by Sen...

LDEQ May Require Louisiana Facilities Exempt From Air Permitting to Maintain Emission Records

Posted on July 10, 2008
By Clare BienvenuPursuant to Act 547, passed by the Louisiana Legislature in the 2008 Regular Session and recently signed into law by the Governor, the Louisiana Department of Environmental Quality (LDEQ) may now require Louisiana facilities exempt from air permitting requirements to maintain records showing that the actual or potential emissions of the facility meet the exemption...

U.S. Supreme Court Rules that Punitive Damages Must Equal Compensatory Damages in Federal Maritime Law

Posted on July 09, 2008
By:  April Rolen-OgdenExxon Shipping Co., et al. v. Baker, et al. involved a class action that was filed by commercial fisherman and native Alaskans against Exxon and its tanker captain for economic losses suffered as a result of the now infamous Exxon Valdez oil spill that occurred in 1989...

Louisiana Supreme Court Holds That Act 312 is Constitutional

Posted on July 03, 2008
On July 1, 2008, the Louisiana Supreme Court held that Act 312 of 2006 (“Act 312”) is constitutional and reversed the district court’s judgment declaring Act 312 unconstitutional and unenforceable under La. Const. art. V, § 16, La...

Federal Court Rules Oyster Fishermen Can't Pursue Class Action Against Owners of Pipelines and Storage Tanks for Alleged Damages from Katrina

Posted on June 27, 2008
by Kelly BeckerIn Barasich, et al. v. Shell Pipeline Co. LP, et al., 2008 U.S. Dist. Lexis 47474 (E.D. La. 6/19/08), at issue was, inter alia, whether a group of commercial oyster fishermen could bring a class action against a group of defendants that owned land-based storage tanks or pipelines that burst as a result of Hurricane Katrina, causing a release of crude oil that allegedly damaged the aquatic wildlife, estuaries, and plaintiffs’ interest in their oyster leases...

Noble Energy, Inc. v. Bituminous Cas. Co

Posted on June 26, 2008
By Tiffany Delery DavisIn Noble Energy, Inc. v. Bituminous Cas. Co., No. 07-20354, 2008 WL 2232085 (5th Cir. 2008), the Fifth Circuit affirmed summary judgment in favor of the defendant, Bituminous Casualty Company, in an insurance coverage dispute concerning whether Bituminous had a duty to defend and indemnify plaintiff, Noble Energy, Inc...

Ninth Circuit Vacates EPA Rule Excepting Oil and Gas Construction Discharges from NPDES Permitting

Posted on June 25, 2008
By Claire BienvenuOn May 23, 2008, the Ninth Circuit vacated EPA’s rule exempting discharges of sediment resulting from oil and gas construction activities from National Pollutant Discharge Elimination System (NPDES) permit requirements. NRDC v...

Inadvertent Disclosure of Privileged Electronic Documents Constitutes Waiver of Privilege

Posted on June 23, 2008
In Victor Stanley, Inc. v. CreativePipe, Inc., __ F.Supp.2d __, 2008 WL 2221841 (D.Md. 2008), the court held that defendants waived any privilege that may have attached to 165 electronically stored documents, including communications between the defendants and their attorneys, which were mistakenly turned over to the plaintiff...

Third Circuit interprets Act 312

Posted on May 27, 2008
 In Germany v. ConocoPhillips Co., 2007-1145 (La. App. 3 Cir. 3/5/08), -- So. 2d --,  the Third Circuit upheld the trial court’s ruling that under Act 312 a single trial of all issues should be held prior to referring a case to the Louisiana Department of Natural Resources (“LDNR”) for the development of a remediation plan...

Texas -- Right to Arbitate Waived Without Proof of Prejudice to Opposing Party

Posted on May 13, 2008
The Supreme Court of Texas has never before found a waiver of the right to arbitrate, but in a recent five-to-four decision likely to attract multiple friend-of-the court briefs on rehearing, the court vacated an $800,000 arbitration award in favor of two homeowners and remanded their claims for trial based on the conclusion of five justices that the homeowners had waived their right to arbitrate by their pre-arbitration litigation conduct...

Acquisitive Prescription and Predial Servitudes

Posted on April 30, 2008
In Davis v. Provost, 2007-1519 (La. App. 3 Cir. 4/2/08), -- So. 2d --, the Louisiana Court of Appeal for the Third Circuit reinforced an earlier holding that 1977 La. Acts No. 514 § 1, which allowed the acquisition of a predial servitude through acquisitive prescription, was not retroactive...

Taxation of Fuel Provided to Compression Service Operators at No Cost

Posted on April 17, 2008
In Bridges v. Production Operators, Inc., 2007-0648 (La. App. 4th Cir. 12/12/07),974 So.2d 54, at issue was whether the provision of fuel by customers to a compression services operator at no cost for use in powering the operator’s compressors was subject to Louisiana sales or use tax...

U.S. Supreme Court Declines to Enforce Arbitration Provision Setting Forth Grounds for Judicial Review of Arbitration Award

Posted on April 08, 2008
In Hall Street Associates, LLC v. Mattel, Inc., 2008 WL 762537 (U.S. 2008), the Supreme Court held that the grounds for vacatur and modification of arbitration awards provided by §§ 10 and 11 of the Federal Arbitration Act (“FAA”) are exclusive...

Punitive damages for gross negligence are insurable under Texas Law

Posted on April 01, 2008
By Kevin ConnollyOn certified question from the Fifth Circuit Court of Appeals, the Texas Supreme Court, in Fairfield Insurance Company v. Stephens Martin Paving, LP, 2008 WL 400397, *1 (Tex. 2008), addressed the issue of whether Texas public policy prohibits a “liability insurance provider from indemnifying an award for punitive damages imposed on its insured because of gross negligence...

Insurance Company House Counsel May Defend Insureds

Posted on April 01, 2008
By Andrew WooleyIn an opinion filed today in the matter of Unauthorized Practice of Law Committee vs. American Home Assurance Co., the Supreme Court of Texas has authorized liability insurers to use in-house staff attorneys to defend their Texas insureds, so long as there is no conflict of interest between the insurer's and the insured's interests: "We hold that an insurer may use staff attorneys to defend a claim against an insured if the insurer’s interest and the insured’s interest are congruent, but not otherwise...

Jindal signs ethics laws

Posted on March 14, 2008
On Tuesday, February 26, the Louisiana Legislature adjourned a special session called by newly-elected Governor Bobby Jindal in the hope of enacting sweeping changes to Louisiana ethics laws relating to elected officials and other state administrators...

Violations of Environmental Terms in Federal Oil and Gas Lease Insufficient to Support a Claim under the False Claims Act

Posted on March 12, 2008
By Clare BienvenuIn Marcy v. Rowan Cos., Inc., No. 06-31238, 2008 WL 588745 (5th Cir. 2008), the Fifth Circuit Court of Appeals affirmed the district court’s decision to dismiss a qui tam action brought under the Federal Claims Act (FCA). The action alleged that the defendants violated the FCA by concealing the discharge of pollutants from an offshore drilling unit into the Gulf of Mexico...

Renewable Energy & Conservation Tax Act of 2008

Posted on February 22, 2008
By Katie Caswell The House Ways and Means Committee has introduced HR 5351, the Renewable Energy and Energy Conservation Tax Act of 2008, which eliminates the manufacturing tax credit for major oil and gas companies and locks the credit at six percent for other producers and refiners...

Texas Supreme Court Again Addresses Royalty Class Actions

Posted on February 19, 2008
In Bowden v. Phillips Petroleum Co., No. 03-0824 (Feb. 15, 2008), the Texas Supreme Court again addressed the propriety of class actions for gas royalty claims.  The class affirmed the denial of two subclasses, but reversed the denial of a third subclass of royalty claimaints...

OCS Lease Expiration: MMS Denial of Suspension of Operations Upheld

Posted on January 30, 2008
By Jana Grauberger:A recent Interior Board of Land Appeals (“IBLA”) ruling, ATP Oil & Gas Corp., 173 IBLA 250 (2008), affirms an MMS denial of a Suspension of Operations (“SOO”) where the lessee submitted an revised exploration plan (“EP”) and permit to drill (“APD”) just days before the lease’s 10-year primary term expired, but was unable to conduct lease activities before the expiration date...

Preferential Rights Decision From Texas Courts

Posted on January 28, 2008
By Jana Graubergerand Anna KnullIn Navasota Resources, L.P. v. First Source Texas, Inc., No. 10-06-00236-CV, 2008 WL 90444 (Tex. App.-Waco Jan. 9, 2008), the issue presented was whether the preferential right in a Joint Operating Agreement was triggered when working interests subject to the JOA were to be sold along with other interests not subject to the agreement...

Court Addresses Sufficiency of Demand Letter Under Mineral Code Articles 212.21-23

Posted on January 25, 2008
In CLK Company, L.L.C. v. CXY Energy, Inc., No. 07-834, 2007 WL 4409686 (La. App. 3d Cir. 12/19/07), the court addressed the payment of royalties and penalties under Mineral Code article 212.23(c) and concluded that plaintiff’s letters were insufficient to trigger the provisions of that article...

Res Judicata Bars Relitigation of 1938 Buras Levee District Lease's Validity

Posted on December 11, 2007
      On November 21, 2007, the Louisiana Fourth Circuit Court of Appeal affirmed the trial court’s ruling in favor of Chevron U.S.A., Inc. (“Chevron”), the Plaquemines Parish Government (“PPG”), and others in a dispute with the State of Louisiana over the validity of a 1938 mineral lease granted by the Buras Levee District (“BLD”)...

Pipeline Right of Way

Posted on December 03, 2007
By Katie CaswellIn Rose v. Tennessee Gas Pipeline Co., plaintiff, owner of an undivided interest in property across which Defendant Tennessee Gas Pipeline Co. (“TGP”) held a pipeline “easement” or “right of way” obtained in an expropriation proceeding, appealed from the district court’s dismissal of her claims against TGP as time barred by prescription...

Recovery of Damages for Lost Production

Posted on November 19, 2007
By April Rolen-OgdenIn Mayne & Mertz, Inc. v. Excalibur, et al., the issue presented was whether damages for loss of a lease opportunity were too speculative to survive summary judgment. The case involved a claim for misappropriation of trade secrets, in this case seismic data...

Federal Court Upholds Mandatory Deep Water Royalty Relief

Posted on November 01, 2007
By Jonathan Hunter:On October 30, 2007, the Federal District Court for the Western District of Louisiana granted summary judgment in favor of Kerr-McGee Oil and Gas Corporation in a dispute between Kerr-McGee and the Department of the Interior over the enforceability of "price threshold" clauses that Interior inserted into deep water leases granted during the years 1996-2000...

Court of Appeal Rejects Plaintiff's Fraud Claim

Posted on October 15, 2007
In Martin v. JKD Investmens, LLC, the Court of Appeal of Louisiana, Second Circuit, rejected a plaintiff's fraud claim because the plaintiff had failed to read the contract that he signed which transferred the mineral rights on his property to JKD Investments, LLC ("JKD")...

Employee Lacked Personal Liability for Oilfield Environmental Damage Under Louisiana Law

Posted on October 10, 2007
By Kindall JamesThe issue of whether an individual employee is personally liable for oilfield environmental damages was recently addressed in Kling Realty Co., Inc. v. Texaco, Inc, 2007 WL 81665 (W.D. La. 2007).  The plaintiff mineral lessors claimed that their property had been damaged by oilfield operations, and sued not only the operator, but also a production supervisor...

Louisiana Supreme Court Denies Writ on Act 312 Procedure

Posted on October 04, 2007
In Duplantier v. BP Amoco, et al., the Louisiana Fourth Circuit Court of Appeal held that under Act 312 of 2006 (La. R.S. 30:29), there should be a single trial of both the regulatory remediation covered by the statute and the plaintiffs' separate damages claims (if any)...

EIA Report - Product Prices and Pipeline News

Posted on September 13, 2007
The Energy Information Agency reported as follows in its September 13, 2007, report:Since Wednesday, September 5, natural gas spot prices increased as tropical storms threatened to disrupt supplies and pipeline explosions in Mexico stirred concerns of supply security...

EIA Lastest News - Product Prices & Pipeline News

Posted on September 06, 2007
Since Wednesday, August 29, natural gas spot prices increased in most markets (exceptions were Florida and Rocky Mountain region).  Crude oil was up over $2 per barrel. Commodity Price or Volumes Change since last % Change Natural Gas Spot (Henry Hub) $5...

Texas Supreme Court decides Superior Snubbing - upholds effect of indemnity provisions in Master Service Agreement

Posted on August 27, 2007
By Andrew Wooley:Supreme Court of Texas decides Superior Snubbing: In a case of substantial importance to the energy industry, the Supreme Court of Texas held that an oilfield service contractor sued by an injured employee of another contractor is entitled to enforce the indemnity provision in a Master Service Agreement between the operator and the contractor whose employee was injured...

Louisiana Extends Abandonment Period For Litigation Affected by Katrina or Rita

Posted on August 27, 2007
By Joe Giarrusso:  In Louisiana, a lawsuit is generally deemed abandoned when the parties fail to take any step in its prosecution for three years.  This rule is operative without any formal order.  La. Code Civ. P. art 561.  However, Act 361 of 2007 extended the period for abandonment to five years where (1) the action was initiated prior to August 26, 2005, and was not previously declared abandoned under the general three year period, and (2) the party proves that the failure to take a step in the prosecution or defense of the suit was caused by or was a direct result of Hurricanes Katrina or Rita...

Latest EIA Report - product prices and pipeline news

Posted on August 23, 2007
Since Wednesday, August 15, all prices reported in the weekly chart (for both natural gas and crude oil) have decreased as Hurricane Dean failed to have a significant impact on domestic production in the Gulf of Mexico, and temperatures moderated demand...

Fifth Circuit Considers Conditional Consent Issue in Cedyco v. Petroquest

Posted on August 23, 2007
By Anna Knull:In Cedyco Corp. v. Petroquest Energy LLC, No. 05-20493, the Fifth Circuit considered claims for breach of contract and specific performance brought under Texas law and arising from the sale of the working interest in two Louisiana oil wells at auction...

MMS' Offshore Texas Lease Sale Successful

Posted on August 23, 2007
MMS's August 22, 2007 Western Gulf of Mexico lease sale offered 3,338 tracts, or approximately 18 million acres, offshore Texas.  Forty-seven companies participated, submitting 358 bids on 282 tracts.  The total of all bids received was $369,496,840...

Fifth Circuit Rejects Takings Claim

Posted on August 07, 2007
In Haspel & Davis Milling & Planting Co., Ltd. v. Board of Commissioners of the Orleans Levee District, the United States Court of Appeals for the Fifth Circuit reversed a grant of summary judgment in favor of plaintiffs on a takings claim.  In 1984, the Louisiana Legislature ordered the Levee Board to return land expropriated to build the Bohemia Spillway to its former owners and to provide them with an accounting of all revenues received from the property...

OPA Does Not Preclude State Law Claims for Additional Compensation

Posted on August 07, 2007
By Drew SpaniolThe Eastern District of Louisiana recently held that the Oil Pollution Liability and Compensation Act (OPA), 33 U.S.C. § 2701 et seq., does not preclude a plaintiff from bringing state law claims for additional liability or compensation...

Louisiana Operators Are Not Responsible For Making Non-Participants' Royalty Payments Before Payout

Posted on August 01, 2007
By Dana DouglasThe Louisiana First Circuit Court of Appeal recently held that an operator is not responsible for payment of a non-operator's royalties and overriding royalties before payout.  In Gulf Explorer, LLC v. Clayton WIlliams Energy Inc., 2007 WL 1651090 (La...

MMS To Prepare Environmental Assessment For Lease Sale 206 (Central Gulf)

Posted on July 10, 2007
On June 27, 2007, the Minerals Management Service (MMS) issued its notice advising the public of its intention to prepare an Environmental Assessment (EA) for proposed OCS Lease Sale 206, which is the Central Gulf of Mexico lease sale to be held in March 2008...

EPA and Army Corps of Engineers Publish Joint Guidance

Posted on July 06, 2007
By Robert E. Holden and Monica Derbes Gibson The Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers have released long-awaited guidance addressing jurisdictional determinations under the Clean Water Act (CWA) in the wake of Rapanos v...

Louisiana Allows Recordation of Memorandum of Mineral Lease

Posted on June 27, 2007
By Collette RossThe Louisiana legislature has amended Louisiana Revised Statute § 44:104(E) to allow a notice of a mineral lease to be recorded for public records purposes instead of the full lease.  Filing a memorandum or extract of a mineral lease was formerly permitted by Louisiana Revised Statute § 9:2721...