In Corbello v. Iowa Prod. Co., 850 So. 2d 686 (La. 2003), the Louisiana Supreme Court recognized a “loophole” in the law where a landowner was allowed to recover millions in remediation damages for oilfield contamination without any requirement that the money be used for actual restoration. In the wake of Corbello, the Legislature responded with the enactment of “Act 312,” La. R.S. 30:29, which governs the procedure in oilfield contamination cases. Act 312 ensures that money awarded for environmental damage is used to remediate the property to state regulatory standards while preserving a landowner’s private contractual rights. Landowners and defendants have fought for years over key provisions of Act 312 including: the availability of “additional remediation” damages above a regulatory cleanup, the scope of recoverable attorney’s fees, and the requirements of the “Most Feasible Plan” structured by the Louisiana Department of Energy and Natural Resources “LDENR.” The upcoming legislative session will tackle two bills addressing the future of Act 312 and legacy litigation. House Bill 602 proposes several amendments to Act 312 including: limitations on the recoverable damages, alternative options for a responsible party to fund the Most Feasible Plan, and restrictions on the recovery of attorney’s fees. House Bill 634 proposes a new administrative procedure which would replace Act 312 as of January 1, 2026. Under this proposal, claims alleging environmental damage must go through a new administrative process before litigation can proceed. That administrative ruling can be appealed to an administrative law judge, and the First Circuit Court of Appeal. The new procedure would mark a significant change from Act 312, which triggers the administrative process only after a party makes a limited admission of responsibility for environmental damage or the finder of fact determines a party or parties responsible for environmental damage.
For more information contact Liskow Attorneys Kelly Becker, Jamie Rhymes, and John Troutman, and stay tuned for future updates on Liskow’s The Energy Law Blog.