Louisiana State Court Blocks Attorney General's Plan to Prosecute Environment Violators

Strategic Insights -

A Louisiana state court has intervened in the state's plan to prosecute oil and gas producers who violate environmental laws. The court issued a permanent injunction that prevents the state attorney general from deputizing law firms to investigate environmental violations. The arrangement, which authorized a 25% contingency fee on court awards, was deemed unconstitutional by the court. The ruling came after a lawsuit filed by the Louisiana Independent Oil & Gas Association (LIOGA) and six individuals, which alleged that the contracts violate the 1974 Louisiana Constitution and several state laws.

Key Takeaways:

  • The Louisiana state court has issued a permanent injunction preventing the state attorney general from deputizing law firms to investigate environmental violations among oil and gas producers.
  • The court ruled that the contracts with 14 law firms, which authorized a 25% contingency fee on court awards, are unconstitutional.
  • The contracts were to have covered state lands and waters, wetlands, and waterbottoms, and allowed for up to 1,000 cases to be pursued, potentially generating up to $10 billion in fees for the law firms.
  • LIOGA and six individuals had filed the lawsuit, alleging that the contracts violate the 1974 Louisiana Constitution and several state laws.
  • Donald G. Briggs, LIOGA's president, welcomed the court's decision, stating that the state should work with the appropriate agency to resolve environmental issues instead of hiring outside lawyers.
  • The court's ruling was seen as a victory for the oil and gas industry, which had strongly opposed the plan.

Statistics:

  • Up to $10 billion: Potential fees for law firms under the contracts.
  • 1,000: Maximum number of cases that could have been pursued under the contracts.
  • 14: Number of law firms authorized to investigate environmental violations.
  • 25%: Contingency fee on court awards authorized for the law firms.
  • $10 million: Maximum case value for each law firm.
  • $12 billion: Estimated cost to the industry if the law firms were to collect up to $3 billion in fees.

Sources:

  • [The Washington Post, Dec 16, 1994]
  • [The Oil Daily, Dec 15, 1994]
  • [Louisiana State District Court, Dec 15, 1994]