Following Monday’s U.S. Supreme Court oral arguments in Chevron USA Inc. v. Plaquemines Parish, Louisiana Mid-Continent Oil and Gas Association (LMOGA) President Tommy Faucheux released a video statement.
“I think it is encouraging that the U.S. Supreme Court recognized the importance of reviewing this case,” Faucheux says. “The high court has the opportunity here to apply the law fairly and consistently to help preserve legal stability for the energy industry that has fueled America’s economy and continues to breathe life into Louisiana communities.”
At issue is whether Chevron can move the case from state to federal court by arguing its historic operations were tied to federal contracts during World War II. Louisiana Attorney General Liz Murrill rejects that claim, saying the wartime agreements were simple purchase contracts that did not direct drilling or coastal activity and that the parish’s claims stem from decades of conduct that allegedly violated Louisiana’s 1979 coastal permitting law.
Chevron and other defendants argue that federal-officer removal should apply broadly, warning that allowing local juries to hear the cases could chill companies from taking on federally related work.
More than 40 similar suits are pending statewide, and one Plaquemines verdict has already topped $744 million, underscoring the enormous financial stakes. Watch the LMOGA video.
