Louisiana Oil and Gas Association President Don Briggs tells S&P Global Platts that a series of lawsuits south Louisiana officials have filed against dozens of oil and gas companies operating in the region could lead drillers to abandon the state, resulting in the loss of millions of dollars in business investments.
“It’s the kiss of death for drilling in south Louisiana,” Briggs tells the industry trade publication, adding that the lawsuits are being studied in “board rooms where people make decisions of whether they’re going to drill and operate in the coastal region of Louisiana.”
Roughly 10 lawsuits have been filed against oil and gas operators, alleging that they have violated the federal Coastal Zone Management Act by allowing erosion to eat up acres of Louisiana’s coastline.
The lawsuits represent a grave threat to the state’s exploration and production industry, especially at a time when the industry has been hard hit by low oil and gas prices, Briggs says.
Although the suits have been working their way through the courts for a number of months, the industry won a victory recently when 24th Judicial District Court Judge Stephen Enright decided to dismiss a lawsuit filed by trial lawyers on behalf of Jefferson Parish.
In that ruling, issued Aug. 1, Enright found that the plaintiffs, including parish and state officials, had failed to avail themselves of existing administrative remedies pursuing their lawsuit.
S&B Global Platts has the full story.
