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FIRST ON FOX: Former Attorney General William Barr expressed significant concerns in a letter sent Thursday to Louisiana Attorney General Liz Murrill. He cautioned her against endorsing an array of multimillion-dollar lawsuits aimed at major oil corporations, including Chevron. Recently, Chevron faced a ruling requiring the company to pay $745 million for environmental actions tied to a subsidiary that no longer exists.
In his communication, Barr connected his concerns with reported backing from Republican Governor Jeff Landry for various lawsuits targeting oil companies. These lawsuits involve Louisiana parishes, akin to counties, and elite attorneys seeking tens of billions in compensation related to land loss issues.
In his letter, Barr stressed that the Trump administration prioritized enhancing America’s domestic energy capabilities. He highlighted President Donald Trump’s executive order, titled Protecting American Energy from State Overreach, indicating the administration’s objective to support the energy sector.
The ongoing case in Plaquemines Parish against Chevron has drawn Barr’s attention. He argued that this case exemplifies Louisiana subjecting energy firms to excessive retroactive penalties disguised as damages linked to alleged environmental harm. This raises concerns about the legal implications for energy producers.
The lawsuit centers on allegations that Texaco, absorbed by Chevron, is responsible for coastal erosion linked to its energy development activities that took place before the 1980s.
Barr warned that Louisiana may inadvertently endorse a surge of 43 lawsuits initiated by prominent plaintiff lawyers against American oil and gas entities on behalf of the state’s coastal parishes.
In response to the ruling, Chevron’s lead trial attorney Mike Phillips conveyed to Fox News Digital that the company intends to appeal. He stated that the verdict highlights numerous legal errors that contributed to an unjust outcome.
Phillips insisted that the verdict does not demonstrate that Chevron is to blame for the land loss in Breton Sound, arguing the 1980 law does not pertain to actions taken years before its enactment.
In his letter, Barr expressed his dismay over the state’s apparent deference to private plaintiffs’ lawyers. He noted that the claims presented by these plaintiffs contradict the 1978 law and lack substantial legal merit.
Barr also conveyed his worries about certain agreements made with Landry regarding the lawsuits. Critics, including the Pelican Institute, have pointed out Landry’s ties to plaintiffs’ attorney John Carmouche, who has financially supported his campaigns and recently gained a position on the Louisiana State University board.
Furthermore, Barr contended that damages incurred before 1980 should not qualify under existing legal frameworks. He raised serious constitutional concerns related to retroactive due process and takings, suggesting these legal foundations may not support Louisiana’s current arguments.
In light of these issues, Barr urged Louisiana’s leadership to consider whether the federal government plays a more significant role in the ongoing land loss, rather than placing the entire blame on energy companies.
His letter, which he authored on behalf of several organizations including the American Free Enterprise Chamber of Commerce, the American Energy Institute, the United States Energy Association, and First Principles, reinforces his call for a reevaluation of the approaches being taken against energy sectors.
Barr expressed a heightened concern that if these lawsuits persist, they could critically impact vital liquefied natural gas plants and operations within coastal areas. He warned that ongoing legal actions might hamper new energy investments in Louisiana, restricting funding for further Gulf production, thereby undermining efforts to reinforce American energy dominance.
Neither Carmouche nor Landry responded to inquiries regarding the initial lawsuit.
In discussions surrounding the ongoing trials, attorney Jimmy Faircloth, who represents state agencies involved, clarified to the Times-Picayune that the Landry administration remains supportive of the energy industry and acknowledges its essential contributions to employment.
Faircloth emphasized that the current case focuses more on the historical missteps attributed to Texaco and emphasizes a failure to uphold regulations from past decades.
This ongoing situation in Louisiana highlights the complex relationship between governmental legal actions and the energy industry, raising substantial questions about economic ramifications and the validity of current lawsuits against energy producers. As the legal battles unfold, implications for the state’s economy and energy sector remain of paramount concern for both stakeholders and observers.
