Louisiana’s Latest Carbon Capture Legislation and Its Impact on Projects
The Energy Law Blog
by Neil Abramson and Jeff Lieberman
1w ago
The Louisiana Legislative Session for 2024 officially began on March 11.  Nine bills have already been filed on CCS. These bills have potentially far-reaching implications for CCS projects. Most of the bills either target CCS projects in specific areas or seek to eliminate or place significant hurdles on CCS development generally.  One bill (HB 696 by House Chairman Geymann) authorizes the unitization of CCS reservoirs by the Commissioner upon application of the storage operator. All bills were filed in the House, and all of them were referred to the House Natural Resources Committe ..read more
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Fifth Circuit Narrows CAFA’s Local Controversy Exception Requiring All Plaintiffs Incur Their Principal Injuries in the Forum State
The Energy Law Blog
by Sheri Corales
1w ago
As a matter of first impression, in Cheapside Mins., Ltd. v. Devon Energy Prod. Co., L.P., No. 23-40591, 2024 WL 886951 (5th Cir. Mar. 1, 2024), the Fifth Circuit held that an oil-and-gas royalties class action belongs in federal court based on its interpretation that the “principal injuries” prong of the CAFA local controversy exception requires all plaintiffs sustain their principal injuries in the forum state.  While most Plaintiffs sustained their injuries in Texas, others did not.  Accordingly, the Fifth Circuit concluded that the principal injuries prong was not ..read more
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All Bark and No Bite: Middle District Finds Conclusory Intentional Tort Allegations Against Employer Insufficient to Prevent Removal on Improper Joinder Grounds
The Energy Law Blog
by Kathryn Gonski, Melanie Derefinko and Lance C. Bullock
1w ago
On March 11, 2024, Liskow lawyers Kathryn Gonski and Melanie Derefinko secured the denial of a motion to remand on improper joinder grounds and the dismissal of an intentional tort claim against Methanex, a major Louisiana plant owner, in Knight v. Turner Industries Group, L.L.C., et al., No. 23-469 (M.D. La.).  The court’s rulings confirmed that conclusory allegations of intentional tort against an employer will not suffice to prevent the removal of an otherwise diverse action, nor can such allegations against non-employer defendants withstand Rule 12(b)(6) scrutiny.  Moreover, whi ..read more
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Proposed Brine Legislation May Pave the Way for Louisiana Lithium Projects
The Energy Law Blog
by Jamie D. Rhymes, Caleb J. Madere and Joe Heaton
3w ago
The Energy Law Blog has previously identified various legal uncertainties regarding direct lithium extraction from brine. We are now seeing the Louisiana legislature address some of these uncertainties head on with Senate Bill 285, which was filed on March 1, 2024 by Louisiana Senator Stewart Cathey, Jr. Namely, SB285 would grant authority to the Office of Conservation to establish units for brine production. Furthermore, the proposed legislation would revise the Mineral Code to expressly include brine among the substances to which the Mineral Code applies. While some uncertainties will undou ..read more
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Environmental Groups Challenge Louisiana’s Primacy Over Class VI Injection Wells
The Energy Law Blog
by Jeff Lieberman and Randee V. Iles
1M ago
Environmental groups are asking the federal appellate courts to vacate the U.S. Environmental Protection Agency’s (EPA) recent decision to grant Louisiana primacy over Class VI injection wells. On February 22nd, three environmental groups, Deep South Center for Environmental Justice, Healthy Gulf, and Alliance for Affordable Energy, filed a petition with the 5th U.S. Circuit Court of Appeals in New Orleans requesting that the Court “hold unlawful, vacate, and set aside” the final rule which approved Louisiana’s 2021 application for primacy. The environmental groups, represented by Earth Justi ..read more
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Choice-of-Law Provisions in Marine Insurance Contracts Upheld by the Supreme Court
The Energy Law Blog
by Raymond T. Waid, Jessie Elizabeth Shifalo and Elizabeth Strunk
1M ago
In a much-anticipated decision, the United States Supreme Court held that choice-of-law provisions in marine insurance contracts are presumptively enforceable under federal maritime law with a few narrow exceptions. In Great Lakes Insurance SE v. Raiders Retreat Realty Co., LLC, 601 U.S. ___ (2024), the country’s highest court overturned a Third Circuit Court of Appeals decision that had created a circuit split regarding the applicability of choice-of-law provisions in marine insurance contracts and when the law of the forum state can override the choice made by the parties to the contract. T ..read more
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At the Well vs. Off the Lease: The Fifth Circuit Asks the Texas Supreme Court to Determine Whether Off-Lease Fuel May be Deducted from Royalties Valued at the Well
The Energy Law Blog
by Sam Allen, James T. Kittrell and Jana Grauberger
1M ago
The United States Court of Appeals for the Fifth Circuit’s recent decision in Carl v. Hilcorp Energy Company, —F.4th—, No. 22-20226, 2024 WL 137038 (5th Cir. Jan 12, 2024) concerns how three related provisions in an oil and gas lease interact: (1) a royalty clause; (2) a free-use clause; and (3) an off-lease clause. When parties to an oil and gas lease reserve royalties, they stipulate where those royalties are to be valued—sometimes referred to as the “valuation point”—in the royalty clause. When royalties are valued “at the well,” royalties must be calculated based on either comparable sale ..read more
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LDEQ Releases Louisiana’s First-Ever Voluntary Environmental Self-Audit Program
The Energy Law Blog
by Colin North, Emily von Qualen, Clare M. Bienvenu and Greg L. Johnson
1M ago
On December 20, 2023, the Louisiana Department of Environmental Quality (“LDEQ”) issued regulations implementing the state’s first-ever voluntary environmental self-audit program. Pursuant to La. R.S. § 30:2044, the regulations provide for the reduction or elimination of civil penalties for certain violations disclosed to LDEQ as the result of a voluntary environmental self-audit. The regulations describe the types of violations that are eligible for penalty reduction; the pre-requisites that must be met for a 75% or 100% penalty reduction; and required notices, including notice prior to the ..read more
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DOI Regulatory Agenda Includes BSEE Rulemakings on Decommissioning and Bonding for Civil Penalty Appeals
The Energy Law Blog
by Jana Grauberger and Valkyrie "Kyrie" Buffa
1M ago
The Department of the Interior (“DOI”) recently published its semi-annual regulatory agenda, which includes two new planned rulemakings affecting federal offshore leases. 89 Fed. Reg. 9598 (Feb. 9, 2024). The DOI’s Bureau of Safety and Environmental Enforcement (“BSEE”) is slated to make further revisions to its decommissioning regulations, following other decommissioning amendments made last year as previously reported on The Energy Law Blog. BSEE’s 2024 decommissioning rule would update 30 C.F.R. 250 subpart Q which governs decommissioning activities on federal offshore oil, gas, and sulphu ..read more
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EJ Evolution: Court Enjoins EPA from Imposing Disparate Impact Requirements via Title VI in Louisiana Permitting
The Energy Law Blog
by Clare M. Bienvenu, Emily von Qualen, Greg L. Johnson and Cherrell Simms Taplin
2M ago
Less than two weeks after the hearing in Louisiana v. EPA, a federal district court granted Louisiana’s request to preliminarily enjoin the Environmental Protection Agency (EPA) and the Department of Justice (DOJ) from imposing or enforcing Title VI of the Civil Rights Act (“Title VI”) based on disparate impact regulations. Case No. 2:23-CV-00692 (W.D. La. Jan. 23, 2024). The lawsuit stemmed from EPA-led Title VI investigations into Louisiana air permitting decisions alleged to have created disparate adverse impacts on minority residents. EPA sought to require Louisiana to conduct disparate a ..read more
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