Allain: Lawsuits threaten industry

Lawsuits against Louisiana oil and gas companies threaten the livelihood of the industry, and area leaders should do everything they can to fight the litigation, State Sen. Bret Allain said Monday.

Allain , R-Franklin, was the guest speaker Monday at the St. Mary Industrial Group’s monthly meeting at the Petroleum Club of Morgan City.

The oil and gas industry “is under siege by the trial lawyers,” Allain said.

Dozens of oil companies have been named in lawsuits filed by or on behalf of four parishes — Jefferson, Plaquemines, Cameron and Vermilion – alleging that the companies didn’t repair to try to offset the environmental damage caused over decades.

“They have decided that the deep pockets of the oil and gas industry haven’t been tapped hard enough,” Allain said.

It’s unfair to place the majority of the blame for damage to the state’s coast on the oil and gas industry, and it’s also a deterrent to business investment, Allain said.

Many oil companies are reluctant to do any onshore work for fear they could be sued later, he said.

If the threat of lawsuits impedes their ability to invest “in south Louisiana, they’ll just go someplace else,” he said.

Attorneys went to parish governments to try to get their support for the lawsuits and several parishes joined.

But St. Mary, Terrebonne and Lafourche wanted no part in the lawsuits, Allain said.

Louisiana Attorney General Jeff Landry intervened in the lawsuits on the state’s behalf, but Gov. John Bel Edwards contested his right to intervene and hired attorneys to represent the state.

Landry has, so far, blocked Edwards’ contract to hire the attorneys.

Much of the legal action got started from “legacy lawsuits” in which lawyers sued for damages on “old oilfield sites” that allegedly hadn’t been cleaned up well enough, Allain said.

After the legacy lawsuits, there was “a barrage” of lawsuits by public entities against oil and gas companies for alleged past damage “digging oil and gas canals that were perfectly legal and permitted at the time,” Allain said.

The Legislature passed a bill, authored by Allain , two years ago to “pretty much shut down” those lawsuits, saying that the state was the only public entity in Louisiana that should be allowed to sue the oil and gas companies.

In an emailed statement, Landry said, “I intervened in this lawsuit because I was concerned that the interest of the State may not have been fully represented or protected. As this complex litigation continues, I remain committed to Louisiana’s best interests.”

As of 8 a.m. Thursday, a spokesman for Edwards hadn't responded to The Daily Review's email requesting a comment.

Also Monday, Allain said he is trying to ensure the Bayou Chene Flood Control and Diversion Project gets the $80 million the project was initially promised through the Louisiana Coastal Protection and Restoration Authority.

The projects includes a permanent floodgate on Bayou Chene near Amelia that will protect parts of St. Mary, Terrebonne, lower St. Martin, Assumption, Lafourche and Iberville parishes from flooding due to the Atchafalaya River.

A permanent structure on Bayou Chene would allow officials to close floodgate when the river level reaches 7 feet and is forecasted to continue rising. Parish leaders have previously installed a temporary flood protection structure during high water events.

Officials have stated there isn’t $80 million available, and CPRA can only provide $40 million, Allain said.

St. Mary Levee District leaders have already spent money to fund engineering of the Bayou Chene project, expecting that money to fund construction of the project would be available, Allain said.

Local leaders are trying to secure the funds the Bayou Chene project was promised and finish the project, Allain said.

Pushing back the project’s construction several years doesn’t do the area any good, Allain said.

Allain plans to meet with state officials, including the governor, to discuss the project, he said.

“I will accept nothing less than full funding for the Bayou Chene (project),” Allain said. “It’s the most important project that I think CPRA can do in the parish.”

A permanent flood protection structure on Bayou Chene not only protects many houses in the region, but also prevents officials from blocking commerce for extended period of time with a temporary structure, Allain said.

The Daily Review contacted a CPRA spokesman for comment on the project but hadn’t received a response as of Thursday morning.