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Court Orders Chevron to Pay $744M for Wetland Damage in Louisiana
Court rulings have mandated Chevron to pay over $744 million in damages for its role in harming the coastal wetlands of south-eastern Louisiana. This verdict was reached by a civil jury on Friday, marking a critical decision in the series of lawsuits accusing the company of contributing to the degradation of vital wetland areas through its oil and gas operations.
This case is the first of 42 lawsuits initiated approximately twelve years ago that claim Chevron’s activities have adversely impacted the region’s wetlands, which are essential for protecting the area from hurricanes and other natural disasters.
The jury determined that Texaco, a subsidiary of Chevron, violated state environmental regulations by engaging in practices such as dredging canals, drilling wells, and improperly disposing of wastewater, all of which have exacerbated the loss of the coastal landscape.
This landmark ruling could motivate additional companies facing similar lawsuits to consider settlements. However, Chevron’s attorney, Mike Phillips, has stated the company’s intention to appeal the decision.
The US Geological Survey has highlighted that Louisiana’s coastal wetlands are among the most threatened environments in the United States, suffering more wetland loss than all other states combined. A staggering net loss of about 4,833 square kilometers—roughly 25% of the land area—was recorded between 1932 and 2016.
Over the years, canals created for oil and gas transportation have disrupted the natural flow of water in these ecosystems. The Lowlander Center points out that these canals act as channels for ocean water to inundate inland areas during severe weather, further aggravating coastal erosion.
As per a Louisiana management law enacted in 1978, oil companies are obligated to clean, rehabilitate, and restore sites used for drilling activities to their original condition once their projects are completed, as reported by the Associated Press here.
The lawsuit, filed by the Plaquemines Parish community in 2013, initially sought damages amounting to $2.6 billion. The parish currently has 20 additional lawsuits pending against other oil companies.
The jury’s decision includes a variety of compensatory awards, totaling $575 million for land loss, $161 million for contamination, and $8.6 million for the abandonment of equipment.
During the trial, attorney Jimmy Faircloth Jr., representing Louisiana’s interests, emphasized the importance of coastal preservation. He echoed concerns that Chevron deemed the area of Plaquemines Parish as unworthy of preservation, stating, “Our communities are built on coast, our families raised on coast, our children go to school on coast.” Faircloth firmly asserted that “the state of Louisiana will not surrender the coast,” highlighting its significance for the state’s future.
According to the Louisiana Coastal Protection and Restoration Authority, the state stands to lose an additional 3,000 square miles of wetland over the next five decades if decisive action isn’t taken.
Phillips, defending Chevron, maintained that the company is not solely responsible for the ongoing land loss in Plaquemines. He argued that much of the conduct under scrutiny predates the implementation of the applicable laws and characterized the ruling as “unjust,” citing numerous alleged legal missteps in the case.
Source
www.theguardian.com