Oil Majors Must Defend Louisiana Permitting Suits in State Court

Lawsuits by Louisiana parishes against major oil and gas companies alleging coastal-use permit violations belong in state court, the Fifth Circuit said.

The cases weren’t properly removed to federal court by the companies under the federal officer removal statute, Judge W. Eugene Davis said for the US Court of Appeals for the Fifth Circuit on Wednesday.

Companies including BP American Production Co., Chevron USA Inc., ExxonMobil Corp. appealed the district court’s decision that the cases brought by Plaquemines Parish and other parishes belonged in state court.

The oil majors argued that they ...