Supreme Court to hear Chevron coastal damage appeal

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The Supreme Court announced on June 17 it will hear an appeal from Chevron, Exxon and other oil and gas companies that lawsuits seeking compensation for coastal land loss and environmental degradation in Louisiana should be heard in federal court.

The companies are appealing a 2024 decision by a federal appeals court that kept the lawsuits in state courts, allowing them to move to trial after more than a decade in limbo.

A southeast Louisiana jury then ordered Chevron to pay upwards of $740 million to clean up damage to the state’s coastline. The verdict reached in April was the first of dozens of lawsuits filed in 2013 against leading oil and gas companies in Louisiana alleging they violated state environmental laws for decades.

While plaintiffs’ attorneys say the appeal encompasses at least 10 cases, Chevron disagrees and says the court’s ruling could have broader implications for additional lawsuits.

Chevron argues that because it and other companies began oil production and refining during World War II as a federal contractor, these cases should be heard in federal court, perceived to be friendlier to businesses.

But the plaintiffs’ attorneys — representing the Plaquemines and Jefferson Parish governments — say the appeal is the companies’ latest stall tactic to avoid accountability. The U.S. Court of Appeals for the Fifth Circuit already rejected similar arguments from Chevron.

In April, jurors in Plaquemines Parish found that energy giant Texaco, acquired by Chevron in 2001, had for decades violated Louisiana regulations governing coastal resources by failing to restore wetlands impacted by dredging canals, drilling wells and billions of gallons of wastewater dumped into the marsh.

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 has 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 coastal protection agency has warned.

Chevron’s attorneys had argued that land loss in Louisiana was caused by other factors and that the company should not be held liable for its actions prior to the enactment of a 1980 environmental law requiring companies to obtain permits and restore land they had used.