The Energy Law Blog

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. The trial court awarded Caldwell the unpaid production proceeds attributable to Caldwell’s production unit acreage.

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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).

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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. Division orders were prepared by Kelley Oil Corporation, a predecessor-in-interest to Samson, and the Jameses began receiving royalties.

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DECEMBER 3, 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.” Bids on tracts in the Haynesville Shale area decreased from the peak sales in June, as companies are focusing on developing the tracts that were leased in the past few months.

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Speaker: Kevin Kai Wong, President of Emergent Energy Solutions

In today's industrial landscape, the pursuit of sustainable energy optimization and decarbonization has become paramount. Manufacturing corporations across the U.S. are facing the urgent need to align with decarbonization goals while enhancing efficiency and productivity. Unfortunately, the lack of comprehensive energy data poses a significant challenge for manufacturing managers striving to meet their targets.

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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. Const. art. I, § 4 and the Fifth Amendment of the U.S. Constitution. M.J. Farms, Ltd. v. Exxon Mobil Corp. , 2007-2371 (La. 7/1/08); _ So. 2d _.

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The Energy Law Blog

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).

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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. Below is a synopsis of the bill. Subtitle A codifies the existing annual appropriations moratoria, puts a permanent ban on leasing and pre-leasing activities, allows lease sales in the Atlantic and Pacific OCS Planning Areas (1

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The Energy Law Blog

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. The district court had dismissed the case on the grounds that the auditor, who received relevant information from an employee of the State of Louisiana, was not the “original source” of the information on which the claim was based.

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The Energy Law Blog

SEPTEMBER 5, 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.

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AUGUST 29, 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. Copies of the opinions are available at: [link] The Court also held 1.

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Speaker: Antoine M. Thompson, Executive Director of the Greater Washington Region Clean Cities Coalition

Diversity, Equity, Justice, and Inclusion (DEJI) policies, programs, and initiatives are critically important as we move forward with public and private sector climate and sustainability goals and plans. Underserved and socially, economically, and racially disadvantaged communities bear the burden of pollution, higher energy costs, limited resources, and limited investments in the clean energy and transportation sectors.

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AUGUST 4, 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. The Louisiana Natural Resources Department has now created a website to provide information to the public related to the Haynesville Shale formation.

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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.

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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. Joe McPherson and signed into law as Act No. 684 by Governor Bobby Jindal on July 2nd of this year.

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JULY 10, 2008

By Clare Bienvenu Pursuant 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.

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Speaker: Laurie Schoeman Director, Climate & Sustainability, Capital

As households and communities across the nation face challenges such as hurricanes, wildfires, drought, extreme heat and cold, and thawing permafrost and flooding, we are increasingly searching for ways to mitigate and prevent climate impacts. During this event, national climate and housing expert Laurie Schoeman will discuss topics including: The two paths for climate action: decarbonization and adaptation.

2022

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JULY 9, 2008

By: April Rolen-Ogden Exxon 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. On the night of the spill, the supertanker was carrying 53 million gallons of crude oil, which translates to just over a million barrels.

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JULY 3, 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. Const. art. I, § 4 and the Fifth Amendment of the United States Constitution. M.J. Farms, Ltd. v. Exxon Mobil Corp. , 2007-2371 (La. 7/1/08); _ So. 2d _.

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JUNE 27, 2008

by Kelly Becker In 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.

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JUNE 26, 2008

By Tiffany Delery Davis In 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., in connection with an underlying suit.

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JUNE 25, 2008

By Claire Bienvenu On 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. EPA , No. 06-73217 (9th Cir. 5/23/08). The Ninth Circuit found EPA’s rule, which was a codification of a recent exemption added to the Clean Water Act (CWA or the Act), to be an impermissible interpretation of the Act.

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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. Acknowledging the risk of inadvertent disclosure typically associated with large document productions, defendants initially sought the court’s approval of a “clawbac

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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.

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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. In Davis , the plaintiffs filed a Petition for Declaratory Judgment seeking access to their property by crossing over a bridge that the defendants had allegedly locked.

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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. Production Operators, Inc. (“POI”) operated a gas compression company and used customer-supplied fuel to power its compressors.

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APRIL 8, 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. The case began as a lease dispute between a landlord, Hall Street Associates, LLC, and tenant, Mattel, Inc., involving a piece of property long used as a manufacturing site.

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APRIL 1, 2008

By Andrew Wooley In 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 congr

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APRIL 1, 2008

By Kevin Connolly On 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.

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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. The session resulted in the passage of a number of bills designed to increase transparency with respect to state officials’ financials, to limit potential influence by lobbyists, and to reduce potential conflicts of interest in state officials’ de

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MARCH 12, 2008

By Clare Bienvenu In 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.

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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. Further, this bill would force oil and gas companies to change the manner in which foreign tax credits are calculated and claimed for resources extracted overseas.

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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. The Court followed its prior holding in Yzaguirre in concluding that an "implied duty to market claim" is not susceptible to class treatment in a class containing both "market-value" and "proceeds" type leases.

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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.

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JANUARY 28, 2008

By Jana Grauberger and Anna Knull In 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.

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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. In CLK Company , the parties entered into a confidentiality agreement whereby the plaintiff agreed to provide services to the defendant.

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