The Supreme Court hands a win to oil and gas companies fighting environmental lawsuits in Louisiana
WASHINGTON (AP) — The Supreme Court handed a win Friday to oil and gas companies fighting lawsuits over coastal land loss and environmental degradation in Louisiana.
The unanimous procedural decision gives the companies a new day in federal court after a state jury ordered Chevron to pay upward of $740 million to clean up damage to the state’s coastline, one of multiple similar lawsuits.
Backed by the Trump administration, the companies said the work in Louisiana started as an effort to quickly increase the supply of aviation gasoline for the U.S. government during World War II and so should be heard in federal court.
The justices agreed. Justice Clarence Thomas, writing for the 8-0 court, noted Congress has long allowed lawsuits against the government and its contractors to be heard in federal court. This suit, he wrote, is clearly related to Chevron’s wartime efforts to bolster the U.S. aviation fuel supply. Federal courts are seen as a friendlier venue for the companies.
Louisiana’s coastal parishes have lost more than 2,000 square miles (5,180 square kilometers) of land over the past century, according to the U.S. Geological Survey, which has also identified oil and gas infrastructure as a significant cause. The state could lose an additional 3,000 square miles (7,770 square kilometers) in the coming decades, its coastal protection agency has warned.
The litigation over the role of oil and gas companies has crossed typical political lines in Louisiana. The hefty jury award came from a community in one of the most conservative, pro-energy parts of the state, said Republican Attorney General Liz Murrill.
Republican Gov. Jeff Landry, a longtime oil and gas industry supporter, also backed the lawsuits when he was attorney general. Local Louisiana leaders remain determined to keep the litigation alive despite the setback, said attorney John Carmouche.
“Simply changing where the case will be heard, as has happened, will not deter our efforts to have Big Oil held accountable for the damages they caused and the enormous restoration they owe the people of Louisiana,” Carmouche said.
Anne Rolfes, the director of the Louisiana Bucket Brigade environmental group, said the decision is a “bump in the road” in efforts to hold the industry accountable for pipelines and canals carving up the natural coastline that have left residents more vulnerable to hurricanes.
Chevron, on the other hand, applauded the Supreme Court’s decision, saying the claims are related to work that the companies did under federal supervision. “Chevron looks forward to litigating these cases in federal court, where they belong,” the company said in a statement.
The company denies responsibility for land loss in Louisiana and argues it’s wrong to sue over work done before state environmental regulations were in place.
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. Friday’s ruling overturns a 2024 decision from the U.S. Court of Appeals for the Fifth Circuit. It will affect about a quarter of the dozens of lawsuits filed against various oil companies, Carmouche said.
The energy industry group Grow Louisiana said the decision should spell the end of the litigation. “These lawsuits have cost Louisiana billions, killed jobs and padded trial lawyers’ pockets," Executive Director Marc Ehrhardt said. “Enough is enough. Stop these lawsuits.”
The Louisiana Association of Business and Industry called the decision “an important win for legal clarity.”
Justice Samuel Alito recused himself from the case, pointing to financial ties to ConocoPhillips. He's previously recused himself from other cases due to his stock holdings.
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Brook reported from New Orleans.
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