44°
Baton Rouge, Louisiana
7 Day Forecast
Follow our weather team on social media

Louisiana's coastal lawsuits against oil companies reach U.S. Supreme Court

9 hours 53 minutes 36 seconds ago Saturday, January 10 2026 Jan 10, 2026 January 10, 2026 8:24 PM January 10, 2026 in News
Source: WBRZ

BATON ROUGE — Louisiana is asking the U.S. Supreme Court to let a series of state lawsuits against oil companies stay in state court rather than move to federal court.

On Monday, Jan. 12, opening arguments begin in Washington, D.C., in the Chevron USA Inc. V. Plaquemines Parish case, which stems from allegations that oil and gas companies, including Chevron, caused damage to Louisiana's coast.

However, whether those oil companies were responsible is not what the U.S. Supreme Court is deciding.

"The United States Supreme Court is going to hear oral arguments in one of a series of 40-plus cases filed and sponsored by local parishes. The court will decide whether these cases should be heard in state court or in federal court," Pelican Institute for Public Policy CEO Daniel Erspamer said.

Earlier this year, Chevron was told to pay at least $740 million to repair damage to Louisiana's coast. A jury said that Texaco, acquired by Chevron over 20 years ago, violated Louisiana coastal regulations for decades.

"Showed that four billion gallons of toxic wastewater were dumped into the marsh over decades and that that conduct was unlawful and that it started before the 1980 permitting regime went into effect," Louisiana Attorney General Liz Murrill said.

Now, Chevron is seeking to move the case to a federal court.

"We need to keep in mind that the activity that is in question has to do with the industry's work to service the war needs of the nation during World War II," Louisiana's Mid-Continent Oil & Gas Association President Tommy Faucheaux said.

During WWII, oil companies were operating under federal contracts to refine petroleum for the war effort.

The companies argue that since they were following federal contracts, cases like this should be in federal court.

"It comes down to something called the Federal Officer Removal Statute. This is something that was enacted in the early 1800s. The core of the statute says that if activities, whatever they may be, are being done at the direction or by the United States federal government, that any legal disputes over those actions should be heard in federal court," Erspamer said.

Erspamer says that if the Supreme Court decides in favor of the state, he expects the state and parishes to force the oil companies to the settlement table.

"Where there is money in a settlement, that money, or a verdict, that money goes directly into the Coastal Restoration fund, which is a constitutionally protected fund that helps us pay for the projects that have been approved, as part of our coastal master plan," Murrill said.

The Pelican Institute says that if the cases remain in state court, it expects a significant decrease in oil and gas production and jobs for the state.

"What we have seen is that a direct result of these lawsuits is already 1000s of jobs lost. Upwards of $100 million a year in lost economic activity, and a significant decrease in the amount of oil and gas production offshore in Louisiana, especially as compared to federal waters," Erspamer said.

Faucheaux predicts that a decision by the Supreme Court will be made sometime in the spring.

More News

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
Radar
7 Days