Importance Score: 85 / 100 🟢
Jury Orders Chevron to Pay Millions for Louisiana Wetlands Damage
NEW ORLEANS, LA – A jury has mandated that Chevron, a major energy corporation, compensate a Louisiana parish approximately $745 million to aid in the restoration of wetlands. The verdict asserts that the energy firm inflicted harm upon these coastal ecosystems over several decades.
Landmark Ruling Could Influence Similar Lawsuits
The ruling, delivered on Friday, is anticipated to significantly impact similar legal actions initiated by other parishes against prominent energy companies. It may also reshape settlement discussions concerning environmental damage claims across Louisiana.
Plaquemines Parish initiated the lawsuit, one of at least 40 similar cases brought by coastal parishes against fossil fuel businesses since 2013.
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Allegations of Environmental Negligence
The legal challenge contended that Texaco, acquired by Chevron in 2000, acted in violation of state regulations for many years. The accusations included:
- Failure to secure necessary coastal permits.
- Negligence in removing oil and gas infrastructure from a Breton Sound oil field after operations ceased.
Breton Sound is located southeast of New Orleans.
State Regulations and Company Response
Louisiana state regulations established in 1980 required companies operating within wetlands to restore dredged canals, drilled wells, and wastewater discharge sites “as near as practicable to their original condition.”
Plaquemines Parish sought $2.6 billion in restitution, asserting a direct link between wetland degradation, pollution, and oil and gas activities.
Chevron contested these claims, arguing that its operations were not responsible for the extensive damage. Furthermore, the company maintained that the 1980 regulations were not applicable to oil and gas ventures commenced prior to that date.
Verdict and Planned Appeal
Following a four-week trial, the jury awarded Plaquemines Parish:
- $575 million for land loss compensation.
- $161 million for pollution remediation.
- $8.6 million for the removal of abandoned equipment.
Chevron has announced its intention to appeal the verdict.
Chevron’s Stance and State Involvement
Mike Phillips, Chevron’s lead trial attorney, stated, “This verdict represents merely a step in determining whether the 1980 law applies retroactively to actions preceding its enactment. Chevron is not the origin of land loss in Breton Sound.”
Despite its generally supportive stance towards the oil and gas sector, the Louisiana state government sided with Plaquemines Parish in this litigation, reflecting the state’s ongoing struggle to mitigate significant coastal land erosion.
Louisiana’s Coastal Crisis
Louisiana has experienced the disappearance of over 2,000 square miles of land, an area comparable to the state of Delaware. This loss stems from:
- Sea-level rise.
- Reduced sediment deposition from the Mississippi River due to flood control levees.
Plaquemines Parish, situated 10 miles downriver from New Orleans, faces particularly severe land loss. It has shrunk to nearly half its original size in the past century. A network of oil and gas canals exacerbates the situation, intensifying seawater intrusion and harming marsh vegetation. The state is implementing aggressive measures to counter these effects.
Coastal Restoration Efforts and Deepwater Horizon Settlement
Louisiana has initiated a comprehensive 50-year, $50 billion coastal master plan aimed at preserving its coastline. This ambitious plan encompasses 124 projects focused on:
- Dredging sand.
- Rebuilding deteriorated marshes.
- Constructing levees, floodgates, and storm surge barriers.
The plan seeks to create thousands of acres of new land, protect existing landmass, and enhance coastal resilience against hurricanes and rising sea levels.
Louisiana has also received billions of dollars from settlements related to the 2010 Deepwater Horizon oil spill, the most significant offshore oil spill in U.S. history, further supporting these restoration initiatives.