California’s land management regulator prevailed over Venoco creditors’ $161 million bankruptcy court lawsuit that alleged the state occupied its oil and gas processing facility without just compensation.
The California State Lands Commission’s occupied the facility for five years to plug and abandon the wells. It was a proper use of the state’s police powers to protect the neighboring communities from an unwanted buildup of toxic gasses, Judge John T. Dorsey of the US Bankruptcy Court for the District of Delaware said in an opinion Tuesday.
The decision came several years after the now-defunct company filed for Chapter 11 twice following ...
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