Chevron USA Inc. v. Plaquemines Parish, Louisiana

Beginning in 2013, several Louisiana coastal parishes—including Plaquemines Parish and Cameron Parish—filed lawsuits in state court against a consortium of oil and gas companies such as BP America Production Company, Chevron U.S.A. Inc., Shell Oil Company, and others. The parishes, joined by Louisiana state agencies and officials, alleged the companies had violated Louisiana’s State and Local Coastal Resources Management Act of 1978 (SLCRMA), which requires certain activities within the state’s designated “coastal zone” to comply with an environmental permitting system. Specifically, the parishes claimed the companies engaged in oil and gas exploration, production, and transportation in various “Operational Areas” along the Louisiana coast without securing the proper permits or by violating the conditions of the permits they did have. The complaints further alleged that pre-1980 activities (before SLCRMA’s effective date) were not “lawfully commenced,” and thus not exempt under the Act’s grandfather clause. The parishes seek wide-ranging remedies, including damages and restoration of affected coastal lands. The events at issue span decades, with the oil companies’ challenged operations beginning prior to SLCRMA and, in some cases, dating back to World War II. During the war, some defendant companies operated under federal government contracts to refine petroleum products for the war effort, and they argue that some of the crude oil produced in the disputed areas was used to fulfill those contracts. The parishes' claims, however, focus on whether the companies’ activities in the coastal zone were environmentally compliant under Louisiana law, regardless of any federal wartime contracts or regulations. After the initial filing in state court, the oil companies have tried multiple times to remove these cases to federal court, invoking various theories of federal jurisdiction, including the federal officer removal statute, based on their World War II-era federal contracts. Each time, the district courts ruled against removal and remanded the cases to state court, concluding that the oil companies did not meet the statutory requirements. The U.S. Court of Appeals for the Fifth Circuit has repeatedly affirmed the remand orders, and the companies now seek review in the U.S. Supreme Court.