The Supreme Court hands a win to oil and gas companies fighting environmental lawsuits in Louisiana
WASHINGTON (AP) — The Supreme Court on Friday handed a win to oil and gas companies fighting lawsuits over coastal land loss and environmental degradation in Louisiana.
Unanimous procedural ruling gives companies another day in federal court after state jury orders Chevron to pay More than $740 million To clean up damage to the state’s coastline, one of several similar cases.
Companies backed by the Trump administration have said the work in Louisiana began as an effort to quickly increase aviation gasoline supplies to the U.S. government during World War II and should therefore be heard in federal court.
The judges agreed. Justice Clarence Thomas, writing for the 8-0 court, noted that Congress has long allowed lawsuits against the government and its contractors to be heard in federal court. This case was clearly related to Chevron’s wartime efforts to shore up U.S. aviation fuel supplies, he wrote. Federal courts are seen as a friendlier environment for companies.
Louisiana’s coastal communities have lost more than 2,000 square miles (5,180 square kilometers) of land in the past century. US Geological SurveyHe also identified oil and gas infrastructure as a key reason. The coastal conservancy says the state could lose an additional 3,000 square miles (7,770 square kilometers) in coming years warned.
The case over the role of oil and gas companies has crossed typical political lines in Louisiana. Republican Attorney General Liz Murrill said the jury award came from a community in one of the most conservative, pro-energy parts of the state.
Republican Gov. Jeff Landry, a longtime supporter of the oil and gas industry, also supported the lawsuits when he was attorney general. Attorney John Carmouche said local Louisiana leaders are determined to keep the case alive despite the setback.
“As before, changing the venue will not deter our efforts to hold Big Oil accountable for the damages they have caused and the tremendous restoration they owe the people of Louisiana,” Carmouche said.
Anne Rolfes, executive director of the environmental group Louisiana Bucket Brigade, said the ruling is a “bump in the road” in efforts to hold the industry accountable for pipelines and canals that cut through natural shorelines, leaving residents more vulnerable to hurricanes.
Chevron, on the other hand, applauded the Supreme Court’s decision, saying that the allegations were related to work done by the companies under federal control. “Chevron looks forward to litigating these cases in the federal court where they belong,” the company said in a statement.
The company denies responsibility for the land loss in Louisiana and argues that it is wrong to sue because work was done before state environmental regulations went into effect.
The companies appealed to the high court after jurors in Plaquemines Parish, a swath of land jutting from the Mississippi River to the Gulf, found that Texaco, the energy giant bought by Chevron in 2001, violated Louisiana regulations governing coastal resources for decades by failing to repair dredges, boreholes and wetlands affected by billions of gallons of wastewater dumped into the marsh.
The lawsuit is one of dozens filed in 2013 alleging oil giants including Chevron and Exxon have violated state environmental laws for decades. Friday’s ruling overturned a 2024 decision by the U.S. Court of Appeals for the Fifth Circuit. Carmouche said this would affect about a quarter of the dozens of lawsuits filed against various oil companies.
Energy industry group Grow Louisiana said the ruling should mean the end of the case. “These cases have cost Louisiana billions of dollars, killed jobs, and lined the pockets of trial attorneys,” said Executive Director Marc Ehrhardt. “Enough is enough. Stop these lawsuits.”
The Louisiana Association of Business and Industry called the ruling “a significant win for legal clarity.”
Justice Samuel Alito recused himself from the case, citing his financial ties to ConocoPhillips. He had previously withdrawn from other cases due to the shares he held.
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Brook reported from New Orleans.
