June 14:
Louisiana residents understand the importance of protecting and restoring its fragile and rapidly receding coast. They also understand the oil and gas industry has been the lifeblood of the state’s economy for generations.
We need both.
But for some time, those two have been at odds with each other, after the Southeast Louisiana Flood Protection Authority-East filed suit against 97 oil and gas companies over land loss they said was caused by drilling operations and digging the network of canals that crisscross the coastal parishes.
Legislation recently signed into law ended the lawsuits. Among other things, it excludes government agencies like the SLFPA-East, better known as the levee board, from suing oil and gas companies.
Amid the bitter debate and legal wrangling, one overriding fact seems to have gotten lost: The interests of the oil and gas industry and environmentalists are not — or shouldn’t be — mutually exclusive. There can be a thriving petroleum industry in this state without sacrificing Louisiana’s environmental well-being.
The issues surrounding the levee board lawsuits are complex and confusing.
In the post-Katrina world, the levee board was looking for funding through the lawsuit to mitigate some of the land loss that has made coastal areas more vulnerable to flooding.
The problem is that not all coastal erosion was caused by oil exploration.
In the early 20th century, the U.S. Army Corps of Engineers began constructing the system of levees that changed the course of the Mississippi River, depriving the state of coast-building sediment. Oyster reefs were depleted to build roads and cover parking lots. And many geologists say the consistency of the soil under the marshes makes it prone to sinking.
So, how much of the problem was caused by the oil and gas industry?
There have been many surveys with widely varying conclusions. John Barry, representing the levee board, told The Daily Advertiser’s Editorial Board estimates range from 10 percent to about 80 percent.
Don Briggs, president of the Louisiana Oil and Gas Association and a former editorial board member for The Daily Advertiser, quoted the U.S. Geological Survey’s estimate of 36 percent.
But by law, the Corps of Engineers cannot be sued; nor can the state Department of Natural Resources, which has reportedly been lax about enforcing regulations.
Oil companies were rightly upset they were the only defendants in a matter with so many players.
They also cried foul over being held responsible for damage that was done in past decades, when most operators followed the laws in place at the time.
And besides, Briggs said, the industry is already taking part in coastal mitigation through fees paid upfront when permits are issued, which go into a state-held fund for that purpose.
In addition, money has been coming into the state through the 2006 federal Gulf of Mexico Energy States Act, which now gives oil producing coastal states 37.5 percent of federal revenues from taxes and fees on leases, royalties and other sources of revenue from oil and gas operations. It will bring hundreds of millions of dollars in dedicated funds for coastal restoratiom and flood and hurricane protection.
This will go a long way toward restoration efforts. But in the meantime, the oil and gas industry may still have a fight in its future.
While the recent legislation torpedoed the levee board lawsuits, it does not prohibit parishes or the state from seeking damages from the industry. Nor does it affect the suits against BP, which are federal cases and federal law supersedes state law, according to the Jindal administration.
Lawsuits filed by Plaquemines and Jefferson parishes are pending and other parishes may follow their lead.
We urge oil and gas industry representatives and parish officials to work together to find mutually acceptable solutions.
We urge the oil industry and its affiliated landowners to step up with realistic solutions, including financial solutions.
Surely, these problems can be resolved outside the courts and outside the Legislature.
Source: http://www.theadvertiser.com/story/opinion/2014/06/14/oil-industry-government-resolve-differences-outside-courts/10540167/
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