4. Source - Legacy Liability in Louisiana
corbello
• $33,000,000 clean up costs for 120
acres (valued at $108,000)
• Don’t have to use money to clean up
• $4,000,000 for attorney fees
5.
6. Source - Legacy Liability in Louisiana
“Legacy
Liability In
Louisiana”
South Texas College of
Law
Energy Law Institute for
Attorneys and Landmen
Sept 2006
7. Source - Legacy Liability in Louisiana
What is a legacy lawsuit?
Plaintiffs A lawsuit to recover damages
and clean up costs associated
with big oil screwing up the
environment since the 1930’s
Defendants Residual lawsuit after the
royalty payments have become
small or have ceased
8. Typical Legacy
Lawsuit Chronology
33 Defendant s
Exxon Mobi l C orp. ; C hev ron U . S . A . , Inc . ; Mc C urdy O i l C o. ;
C i nder P roduc t i on C o. ; Got ham 1985, LP ; Monroe Wel l
S e rv i c e , Inc . ; Vi s t a C orp. ; J A S A , Inc . ; R os s Expl ora t i on, Inc . ;
Trickle Down Oil, Inc.; Omega Energy, Inc.; Standard
P roduc t i on C o. ; B a rnwe l l O i l C o. , Inc . ; B e rry P e t rol e um C o. ;
C el eron O i l & Gas C o. ; P hoeni x O perat i ng C o. , Inc . ; S out hern
O i l & Ga s C o. ; B a y ou S t a t e oi l C orp. ; EO T T Ene rgy C orp. ;
A bne y O i l C o. , Inc . ; F rog Is l a nd, LLC ; Le ga c y R e s ourc e s C o. ,
LP ; C al umet Lubri c ant s C o. , LP ; J . C . Trahan D ri l l i ng
C ont rac t or, Inc . ; S hal l ow O i l C o. , Inc . ; H i l l i ard P et rol eum,
Inc . ; Ly ons , H i l l i ard & Wat s on, Inc . ; Three S i s t ers P et rol eum
Inc . ; F ai t h Energy , LLC ; New A meri c an P et rol eum A s s
9. Source - Legacy Liability in Louisiana
How do i locate areas where i may
successfully litigate for environmental
damages?
Step 2 Locate these babies
Locate the old fields that were
producing during the early periods
when open pits were used.
Prepare an operator-ship chronology
to insure at least one deep pocket is on
the hook. If not place project on shelf
for later consideration, if any.
10. Legacy Suits Growth
after Corbello 2002
• Since Corbello, 271 suits • OOC has not received
have been filed with more environmental test data in
than 1,500 defendants 210 (78%) of the 271 cases
• In 2006 Legislature passed • Districts courts have
Act 312 in attempt to implemented ACT 312
handle lawsuits and move differently than was
remediation forward intended by the legislature.
• To Date 61 cases • Insurance companies are
submitted environmental now denying insurance to
data to the OOC companies in Louisiana,
but not in Texas and
Mississippi
11.
12.
13. 2010 Louisiana Top Crude Producers
Defendants in Legacy Sites Cases
Rank Company Name Crude Oil 29 YUMA E&P 235,978
1 HILCORP ENERGY COMPANY 7,514,204 30 CONOCO PHILLIPS - BURLINGTON 232,748
2 SWIFT ENERGY OPERATING 3,866,557 31 ROYAL PRODUCTION COMPANY 226,546
3 TEXAS PETROLEUM INVESTMENT 2,103,542 32 AXIS ONSHORE 223,753
4 GULFPORT ENERGY CORPORATION 1,979,024 33 TORZA OPERATING 223,473
5 HELIS OIL & GAS COMPANY 1,827,009
34 MARINER ENERGY 210,940
6 CHEVRON U.S.A. 1,803,450
35 RODESSA OPERATING 209,809
7 XTO ENERGY 1,623,189
36 ALTA MESA SERVICES 209,195
8 APACHE CORPORATION 1,407,190
37 NEUMAN PRODUCTION COMPANY 207,909
9 MIDSTATES PETROLEUM 1,237,643
38 MUNOCO COMPANY 200,421
10 DENBURY ONSHORE 1,214,470
39 LIBERTY RESOURCES 189,752
11 STONE ENERGY CORPORATION 1,120,626
40 PRIZE PETROLEUM 189,681
12 ENERGY PARTNERS 950,011
13 DEVON ENERGY PRODUCTION 839,683 41 BRIDWELL OIL MANAGEMENT 189,318
14 FOREST OIL CORPORATION 750,649 42 J.P VANWAY
. 185,832
15 ENERGYQUEST II 715,279 43 INEXCO OIL COMPANY 184,943
16 MARITECH RESOURCES 621,248 44 CASTEX ENERGY 179,295
17 COX OPERATING 572,574 45 JUSTISS OIL COMPANY 172,336
18 MCGOWAN WORKING PARTNERS 554,739 46 SUNLAND PRODUCTION 167,080
19 DUNE OPERATING COMPANY 553,788 47 NOBLE ENERGY 165,203
20 LOBO OPERATING 538,227 48 SOUTHERN BAY OPERATING 164,704
21 MILAGRO EXPLORATION 483,659
49 JAG OPERATING 154,588
22 CENTURY EXPLORATION 448,427
50 JGC ENERGY 146,570
23 DIMENSION ENERGY CO 333,523
24 BOPCO 328,890 STATE TOTAL PRODUCTION 49,114,795
25 THE MERIDIAN 281,658 TOP 50 TOTAL CRUDE OIL PRODUCTION 79% 38,715,580
26 CLAYTON WILLIAMS ENERGY 277,008 TOP 50 WITH LEGACY CASES 27,663,975
27 PETRO-HUNT 257,827
TOP 50 PERCENTAGE WITH LEGACY 56%
28 THREE SISTERS PETROLEUM 242,412
14. 2010 Louisiana Top Crude Producers
Defendants in Legacy Sites Cases
Rank Company Name Crude Oil 29 YUMA E&P 235,978
1 HILCORP ENERGY COMPANY 7,514,204 30 CONOCO PHILLIPS - BURLINGTON 232,748
2 SWIFT ENERGY OPERATING 3,866,557 31 ROYAL PRODUCTION COMPANY 226,546
3 TEXAS PETROLEUM INVESTMENT 2,103,542 32 AXIS ONSHORE 223,753
4 GULFPORT ENERGY CORPORATION 1,979,024 33 TORZA OPERATING 223,473
5 HELIS OIL & GAS COMPANY 1,827,009
34 MARINER ENERGY 210,940
6 CHEVRON U.S.A. 1,803,450
35 RODESSA OPERATING 209,809
7 XTO ENERGY 1,623,189
36 ALTA MESA SERVICES 209,195
8 APACHE CORPORATION 1,407,190
56% of the top 50 producers have legacy
9
10
MIDSTATES PETROLEUM
DENBURY ONSHORE
1,237,643
1,214,470
37
38
NEUMAN PRODUCTION COMPANY
MUNOCO COMPANY
207,909
200,421
suits
39 LIBERTY RESOURCES 189,752
11 STONE ENERGY CORPORATION 1,120,626
40 PRIZE PETROLEUM 189,681
12 ENERGY PARTNERS 950,011
41 BRIDWELL OIL MANAGEMENT 189,318
Which represents 79% of the production of
13 DEVON ENERGY PRODUCTION 839,683
14 FOREST OIL CORPORATION 750,649 42 J.P VANWAY
. 185,832
15 ENERGYQUEST II 715,279 43 INEXCO OIL COMPANY 184,943
16
17
the top 50 producers
MARITECH RESOURCES
COX OPERATING
621,248
572,574
44
45
CASTEX ENERGY
JUSTISS OIL COMPANY
179,295
172,336
18 MCGOWAN WORKING PARTNERS 554,739 46 SUNLAND PRODUCTION 167,080
19 DUNE OPERATING COMPANY 553,788 47 NOBLE ENERGY 165,203
20 LOBO OPERATING 538,227 48 SOUTHERN BAY OPERATING 164,704
21 MILAGRO EXPLORATION 483,659
49 JAG OPERATING 154,588
22 CENTURY EXPLORATION 448,427
50 JGC ENERGY 146,570
23 DIMENSION ENERGY CO 333,523
24 BOPCO 328,890 STATE TOTAL PRODUCTION 49,114,795
25 THE MERIDIAN 281,658 TOP 50 TOTAL CRUDE OIL PRODUCTION 79% 38,715,580
26 CLAYTON WILLIAMS ENERGY 277,008 TOP 50 WITH LEGACY CASES 27,663,975
27 PETRO-HUNT 257,827
TOP 50 PERCENTAGE WITH LEGACY 56%
28 THREE SISTERS PETROLEUM 242,412
15. 1000 $130
900 Legacy Lawsuits Discourage
South La Land Drilling $111
800
South La - Land
700 Texas $93
New Mexico
Oklahoma
600 Wyoming
Crude Oil ACT 312 $74
June 2006
500 Corbello
June 2002 $56
400
300 $37
200
$19
100
0 $0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
16. 1000 $130
900 Legacy Lawsuits Discourage
South La Land Drilling $111
800
L S U CLa -n t e r f o r E n e r g y S t u d i e s
South e Land
$93
Texas
700
1200 Wells not to be drilled
New Mexico
Oklahoma
600 Wyoming 30,000 Jobs
ACT 312 $74
Crude Oil
June 2006
500 Corbello
June 2002 $56
400
300 $37
200
$19
100
0 $0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
17. LOUISIANA LAWSUIT CLIMATE
SECOND WORST IN NATION
Lawsuit Climate 2010
Ranking the States
Louisiana RANK
LAWSUIT CLIMATE 49TH
JUDGES IMPARTIALITY 49TH
JUDGES COMPETENCE 49TH
JURIES FAIRNESS 49TH
U.S. CHAMBER INSTITUTE FOR LEGAL REFORM
18. LOUISIANA LAWSUIT CLIMATE
SECOND WORST IN NATION
Lawsuit Climate 2010
Ranking the States
Louisiana RANK
LAWSUIT CLIMATE 49TH
JUDGES IMPARTIALITY 49TH
JUDGES COMPETENCE 49TH
JURIES FAIRNESS 49TH
U.S. CHAMBER INSTITUTE FOR LEGAL REFORM
Editor's Notes
As of January 6th, 68 rigs in N. LA, down from 139 in April 2010.\n\nSome may look at this as a gloomy picture but please look at what ran in 2000 - we are almost triple that now.\n\nNot many of us (Maybe Dickie) were interested back in 1992 when there were (yes) 5 rigs running in N. LA. \n\nFluctuations dictated by market prices... Market is king.\n
\n
Penalties and interest reased total award to over $70 million\n
\n
Presentation by Bill Grffin to the South Texas College of Law, Energy Law Institute for Attorneys and Landmen, Sept 2006\nThe next four slides are exact copies of his presentation “Legacy Liability in Louisiana”\n
\n
\n
\n
TO DATE\n61 CASES SUBMITTED ENVIRONMENTAL DATA TO THE OOC\nCONSERVATION HAS NOT,RECEIVED ENVIRONMENTAL TEST DATA IN 210 (78%) OF THE 271 CASES\n
\n
\n
\n
\n
Respondents also name NO as one of the worst court systems in the nation, tied for tenth.\n1,482 general counsels and senior attys or executives in companies with annual revenues of at least $100 Million.\n67% of those question said a states lawsuit environment is likely to impact important business decisions at their company.\n
