April 24, 2024

Louisiana Agency Sues Energy Companies for Wetland Damage

“This protective buffer took 6,000 years to form,” the state board that oversees flood-protection efforts for much of the New Orleans area argued in court filings, adding that “it has been brought to the brink of destruction over the course of a single human lifetime.”

The suit, filed in civil district court in New Orleans by the board of the Southeast Louisiana Flood Protection Authority-East, argues that the energy companies, including BP and Exxon Mobil, should be held responsible for fixing damage done by cutting thousands of miles of oil and gas access and pipeline canals through the wetlands. It alleges that the network functioned “as a mercilessly efficient, continuously expanding system of ecological destruction,” killing vegetation, eroding soil and allowing salt water into freshwater areas.

“What remains of these coastal lands is so seriously diseased that if nothing is done, it will slip into the Gulf of Mexico by the end of this century, if not sooner,” the filing stated.

A spokeswoman for BP said the company would have no comment. A spokesman for Exxon Mobil said the company had no comment at this time.

Gladstone N. Jones III, a lawyer for the flood protection authority board, said the plaintiffs were seeking damages equal to “many billions of dollars. Many, many billions of dollars.”

Mr. Jones acknowledged that the government, which has strong protection against lawsuits, might bear some responsibility for the loss of wetlands. But he noted that Washington had spent billions on repairing and strengthening hurricane defenses since the system built by the Army Corps of Engineers failed after Hurricane Katrina in 2005. By taking the companies to court, he said, “we want them to come and pay their fair share.”

The role of the industry is well documented in scientific studies and official reports. In calling for remediation efforts, a 2012 report by the state’s Coastal Protection and Restoration Authority stated, “Dredging canals for oil and gas exploration and pipelines provided our nation with critical energy supplies, but these activities also took a toll on the landscape, weakening marshes and allowing salt water to spread higher into coastal basins.”

The suit argues that the environmental buffer serves as an essential protection against storms by softening the blow of any incoming hurricane before it gets to the line of levees, flood walls, and gates and pumps maintained and operated by the board. Losing the “natural first line of defense against flooding” means that the levee system is “left bare and ill-suited to safeguard south Louisiana,” the lawsuit says.

The “unnatural threat” caused by exploration, it states, “imperils the region’s ecology and its people’s way of life — in short, its very existence.”

John M. Barry, an author and a member of the flood protection authority board, noted that there were other causes of coastal wetlands loss, including decisions by the Corps of Engineers over the decades to design navigation and flood control systems for the Mississippi River that kept its waters from delivering the sediment that once nourished the wetlands. Still, he said, “we just want them to fix what they broke.”

The lawsuit relies on well-established legal theories of negligence and nuisance, as well as elements of law more particular to the Louisiana Civil Code, including “servitude of drain,” which relates to changing patterns of water flow and drainage across the Bayou State. Even though the industry has been producing oil and gas for 100 years, because the damage is continuing to occur, the board argues, the statute of limitations should not apply.

Walter Olson, a Cato Institute expert on litigation who often expresses skepticism about civil litigation, said that he could not comment extensively without seeing the filing, but that “it sounds like the sort of thing you couldn’t dismiss out of hand.” He said some environmental lawsuits, like one against power companies over the effects of climate change on sea-level rise and its effect on the Alaskan town of Kivalina, incorporate creative legal arguments that may not stand up in court. “It’s not Kivalina,” he said, if the plaintiffs can point to specific people or entities causing specific damage. He added that proving causation in court, however, “can be a big headache.”

The state official overseeing coastal management sounded a skeptical note. The official, Garret Graves, chairman of Louisiana’s Coastal Protection and Restoration Authority, issued a statement saying that while he and his colleagues had not yet read the lawsuit and could not comment on its merits, “the best way to direct oil and gas company revenues into our coast is through revenue sharing from offshore energy production” through laws like the Gulf of Mexico Energy Security Act of 2006. That law directs a portion of federal income from offshore oil and gas exploration and production into coastal restoration and other environmental projects.

“We are encouraged by recent efforts in Congress” to increase those funds, Mr. Graves said, adding, “More needs to be done.”

No other state agencies have joined the lawsuit, and Mr. Barry said that during preparation of the suit, his board had not discussed the case with other levee boards. The politically powerful oil and gas industries might bring pressure to bear on others who might be inclined to join, Mr. Jones said, but now that the case has been filed, “it really raises the question that’s going to be asked at a whole lot of boards across southern Louisiana: Can we really afford not to do this?”

This article has been revised to reflect the following correction:

Correction: July 24, 2013

An earlier version of this article misspelled the given name of the chairman of Louisiana’s Coastal Protection and Restoration Authority. He is Garret Graves, not Garrett.

Article source: http://www.nytimes.com/2013/07/25/us/louisiana-agency-to-sue-energy-companies-for-wetland-damage.html?partner=rss&emc=rss

BP Will Plead Guilty and Pay Over $4 Billion

In a rare instance of seeking to hold individuals accountable for company misdeeds, the Justice Department also filed criminal charges against three BP employees in connection with the accident.

“This is unprecedented, both with regard to the amounts of money, the fact that a company has been criminally charged and that individuals have been charged as well,” Attorney General Eric H. Holder Jr. said at a news conference in New Orleans to announce the settlement.

The government said that BP’s negligence in sealing an exploratory well caused it to explode, sinking the Deepwater Horizon drill rig and unleashing a gusher of oil that lasted for months and coated beaches all along the Gulf Coast. The company initially tried to cover up the severity of the spill, misleading both Congress and investors about how quickly oil was leaking from the runaway well, according to the settlement and related charges.

While the settlement dispels one dark cloud that has hovered over BP since the spill, it does not resolve what is potentially the largest penalty related to the incident: the company could owe as much as $21 billion in pollution fines under the Clean Water Act f it is found to have been grossly negligent. Both the government and BP vowed to vigorously contest that issue at a trial scheduled to begin in February.

Under its deal with the Justice Department, BP will pay about $4 billion in penalties over five years. That amount includes $1.256 billion in criminal fines, $2.394 billion to the National Fish and Wildlife Foundation for remediation efforts and $350 million to the National Academy of Sciences. The criminal fine is one of the largest levied by the United States against a corporation.

BP also agreed to pay $525 million to settle civil charges by the Securities and Exchange Commission that it misled investors about the flow rate of oil from the well.

In addition, the company will submit to four years of government monitoring of its safety practices and ethics.

“All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident, as well as the impact of the spill on the Gulf Coast region,” Robert W. Dudley, BP’s chief executive, said in a statement. “We apologize for our role in the accident, and as today’s resolution with the U.S. government further reflects, we have accepted responsibility for our actions.”

A broader settlement that would have resolved the Clean Water Act claims failed to win agreement from some parties, in particular the state of Louisiana. BP and the government now intend to go to trial on those claims in February.

The government charged the top BP officers aboard the drilling rig, Robert Kaluza and Donald Vidrine, with manslaughter in connection with each man who died, contending that the officials were negligent in supervising tests to seal the well.

Prosecutors also charged David Rainey, BP’s former vice president for exploration in the Gulf of Mexico, with obstruction of Congress and making false statements for understating the rate at which oil was spilling from the well.

As part of its plea agreement, BP admitted that, through Mr. Rainey, it withheld documents and provided false and misleading information in response to the House of Representatives’ request for information on how quickly oil was flowing. While Mr. Rainey was publicly repeating BP’s stated estimate of 5,000 barrels of oil a day, the company’s engineering teams were using sophisticated methods that generated significantly higher estimates. The Flow Rate Technical Group, consisting of government and independent scientists, later concluded that more than 60,000 barrels a day were leaking into the gulf during that time.

Lawyers for all three men charged denied that their clients had committed any criminal wrongdoing.

“This is not justice,” Mr. Kaluza’s lawyers, Shaun Clarke and David Gerger, said in a statement. “After nearly three years and tens of millions of dollars in investigation, the government needs a scapegoat.”

Mr. Holder, the attorney general, said that the government’s investigation was continuing and that other criminal charges could be filed.

Clifford Krauss reported from Houston and John Schwartz from New York. Contributing reporting were Julia Werdigier and Stanley Reed in London, Charlie Savage and John M. Broder in Washington and Campbell Robertson in New Orleans.

Article source: http://www.nytimes.com/2012/11/16/business/global/16iht-bp16.html?partner=rss&emc=rss