Supreme court sides with oil and gas firms in Louisiana coastal damage fight
TL;DR
The Supreme Court ruled in favor of oil and gas companies in a Louisiana coastal damage case, allowing them to move their lawsuits to federal court. This decision follows a state jury's order for Chevron to pay over $740 million for environmental cleanup.
Key points
- Supreme Court ruled 8-0 in favor of oil and gas companies
- Chevron ordered to pay over $740 million for coastal cleanup
- Louisiana lost over 2,000 square miles of land due to environmental degradation
Mentioned in this story
The supreme court handed a win Friday to oil and gas companies fighting lawsuits over coastal land loss and environmental degradation in Louisiana.
The 8-0 procedural decision gives the companies a new day in federal court after a state jury ordered Chevron to pay upward of $740m to clean up damage to the state’s coastline, one of multiple similar lawsuits.
Backed by the Trump administration, the companies argued the case belongs in federal court because they began oil production and refining during the second world war as US contractors. They deny responsibility for land loss in Louisiana and say it is wrong to sue them for what they did before state environmental regulations were in place.
Louisiana’s coastal parishes have lost more than 2,000 sq miles (5,180 sq km) of land over the past century, according to the US Geological Survey, which has also identified oil and gas infrastructure as a significant cause. The state could lose an additional 3,000 sq miles (7,770 sq km) in the coming decades, its coastal protection agency has warned.
Republican governor Jeff Landry backed the lawsuits when he was attorney general, despite being a longtime oil and gas industry supporter. Attorneys for local Louisiana leaders say the supreme court appeal was a stalling tactic.
The companies appealed to the high court after jurors in Plaquemines parish – a sliver of land straddling the Mississippi River into the Gulf – found that energy giant Texaco, acquired by Chevron in 2001, had for decades violated Louisiana regulations governing coastal resources by failing to restore wetlands impacted by dredging canals, drilling wells and billions of gallons of wastewater dumped into the marsh.
The case is one of dozens of lawsuits filed in 2013 alleging oil giants including Chevron and Exxon violated state environmental laws for decades.
The companies asked the justices to overturn a 2024 decision from the US court of appeals for the fifth circuit that allowed the suit to stay in state court.
Justice Samuel Alito recused himself from the case, saying he has financial ties to ConocoPhillips. He had recused himself from other cases due to his stock holdings.
Q&A
What was the Supreme Court's decision regarding Louisiana coastal lawsuits?
The Supreme Court ruled 8-0 in favor of oil and gas companies, allowing them to move their lawsuits over coastal damage to federal court.
How much was Chevron ordered to pay for coastal damage in Louisiana?
Chevron was ordered by a state jury to pay over $740 million for cleanup related to coastal land loss.
What are the environmental impacts of oil and gas infrastructure in Louisiana?
Oil and gas infrastructure has been identified as a significant cause of Louisiana's coastal land loss, with over 2,000 square miles lost in the past century.
