WASHINGTON (AP) — The Supreme Court handed a victory Friday to oil and gas companies fighting lawsuits over coastal land loss and environmental degradation in Louisiana.
The unanimous procedural ruling gives the companies a new day in federal court after a state jury ordered Chevron to pay $740 million to clean up damage to the state’s coastline, one of many similar cases.
Backed by the Trump administration, the companies said the work in Louisiana began during World War II as an effort to quickly increase the supply of aviation gasoline for the U.S. government and should be heard in federal court.
The judges agreed. Justice Clarence Thomas, writing for the 8-0 court, noted that Congress had long allowed lawsuits against the government and its contractors to be heard in federal courts. The suit, he wrote, apparently related to Chevron’s wartime efforts to bolster the US aviation fuel supply. Federal courts are seen as a friendly place for companies.
Louisiana’s coastal parishes have lost more than 2,000 square miles (5,180 square kilometers) of land over the past century, according to the U.S. Geological Survey, which also identified oil and gas infrastructure as a significant cause. The state could lose another 3,000 square miles (7,770 square kilometers) in the coming decades, its Coast Guard Agency warned.
Litigation over the role of oil and gas companies has crossed distinct political lines in Louisiana. The big jury award came from a community in one of the most conservative, pro-energy parts of the state, said Republican Attorney General Liz Murrill.
Republican Gov. Jeff Landry, a longtime supporter of the oil and gas industry, supported the cases when he was attorney general. Local Louisiana leaders are determined to keep the case alive despite the setback, attorney John Carmouche said.
“Changing the venue of the case, as it has, will not prevent Big Oil from doing the damage they have done and our efforts to hold them accountable for massive restitution to the people of Louisiana,” Carmoche said.
Annie Rolfes, director of the Louisiana Bucket Brigade environmental group, said the decision is a “bump in the road” in efforts to hold industry accountable for pipelines and canals that carve up natural shorelines, putting residents at greater risk in storm surges.
Chevron, on the other hand, praised the Supreme Court’s decision, saying the claims relate to the companies’ work under federal surveillance. “Chevron looks forward to litigating these cases in federal court, where they belong,” the company said in a statement.
The company denies responsibility for the land damage in Louisiana and argues that it is unfair to sue for work done before the state’s environmental regulations went into effect.
The companies appealed to the high court after judges in Plaquemines Parish – a stretch of land along the Mississippi River’s gulf – found that energy giant Texaco, acquired by Chevron in 2001, violated Louisiana rules governing coastal resources for decades and failed to restore the drillland. Gallons of wastewater were dumped into the marsh.
The lawsuit is one of dozens filed in 2013, alleging that oil companies, including Chevron and Exxon, violated state environmental laws over decades. Friday’s decision overturns a 2024 ruling by the U.S. Court of Appeals for the Fifth Circuit. That would affect about a quarter of the dozens of lawsuits filed against various oil companies, Carmoche said.
Energy industry group Grow Louisiana said the decision should spell the end of the lawsuit. “These lawsuits have cost Louisiana billions, killed jobs and put a huge dent in the pockets of the attorneys who litigated the cases,” said Executive Director Mark Erhart. “Enough. Close these issues.”
The Louisiana Association of Business and Industry called the decision “an important victory for legal clarity.”
Justice Samuel Alito recused himself from the case, citing financial ties to ConocoPhillips. He has previously recused himself from other cases because of his stock holdings.
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Brooke reported from New Orleans.
