Energy Law

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...

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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 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
On July 12, 1996, the Jameses purchased immovable property from Gray Investments, a corporation owned by Leon Gray, Sr. and his wife, Mary Gray. 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
by Elisabeth Lorio The United States Court of Appeals for the Fifth Circuit recently affirmed the United States District Court for the Eastern District of Louisiana’s decision to grant partial summary judgment in favor of the operator co-owner in a dispute over liability after a fellow co-owner’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...

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