Washington Times: Louisiana Gov. Landry’s land loss lawsuits: A risky approach for energy and economic security
Superfluous litigation means fewer jobs, emptier state coffers
My article, critiquing Louisiana’s “land loss” lawsuits that target siphoning billions from the state’s oil and gas industry, was initially published on May 12 in The Washington Times. (I am republishing it here with permission.)
Please feel free to comment below or share the article around.
Louisiana Gov. Landry’s land loss lawsuits: A risky approach for energy and economic security
Superfluous litigation means fewer jobs, emptier state coffers
By Jason Hayes - Monday, May 12, 2025
OPINION:
Louisiana Gov. Jeff Landry and Attorney General Liz Murrill support shortsighted and counterproductive lawsuits targeting American oil and gas producers operating in Louisiana and elsewhere. These lawsuits set a troubling precedent, conflict with President Trump’s energy dominance agenda and harm the people of Louisiana.
For more than a decade, state officials and parish councils have worked together to file 43 lawsuits against oil and gas producers. These lawsuits claim that canals constructed by the industry to give boats access to energy infrastructure harm the state’s wetlands. They seek billions of dollars in damages, ostensibly to finance coastal restoration efforts.
However, five key issues plague the litigation. First, these lawsuits conflict with national energy goals by discouraging domestic energy production. Second, the canals at the center of the litigation are not the primary causes of wetland depletion; federal levees are. Third, the canals date back to World War II, when the federal government’s demand for aviation gasoline spurred the industry to develop and build them. Fourth, state government agencies have overseen and approved the industry’s activities, including canal construction. Fifth, thanks to the approval of oil and gas development under previous administrations, Louisiana has benefited and still benefits from the industry’s presence.
The lawsuits aimed at the domestic oil and gas industry directly contradict Mr. Trump’s energy dominance agenda. Since his first moments in office, Mr. Trump has prioritized domestic energy production to enhance national security and economic stability. These lawsuits, however, will diminish investment and energy production in the Gulf of America, undermining his efforts to revitalize America’s energy sector. A similar lawfare effort in Michigan just ran into a major roadblock when the Justice Department sued to block the state’s attempts to seek damages from oil and gas producers for alleged climate harms.
“One of the most significant causes of land loss is the straitjacketing of the lower Mississippi River with huge levees,” argues Restore the Mississippi River Delta, a coalition of environmental and conservation groups.
Since the late 1920s, the Army Corps of Engineers has constructed and maintained a network of levees across the state.
“Coastal researchers agree that leveeing of the Mississippi River … cut off a sediment supply to the coastal plain,” said researchers from Louisiana State University. The decreased sediment load “led to increasing rates of Louisiana’s coastal plain land loss.”
During World War II, the federal government entered into contracts encouraging companies to produce high-octane aviation fuel, cementing the oil and gas industry’s presence in Louisiana. Canals, pipelines and related infrastructure that are now common along the state’s coast were constructed to meet the increasing demand for fuel.
Scientific American reported in 2013 that the canals “permit saltwater to flow into the wetlands, weakening and killing the plants that hold the marsh together.”
Nevertheless, state and federal governments continued to allow and approve the construction of these canals, which contributed to making Louisiana “one of the country’s most significant providers of oil and gas,” said the U.S. Chamber of Commerce’s Institute for Legal Reform.
These energy companies have complied with federal and state regulations in their ongoing activities. Nothing they built — not a canal, pipeline, well pad or storage tank — was constructed without the oversight and approval of state and federal agencies.
Oil and gas production generated approximately $1.4 billion for the state through severance and other taxes on petroleum products. That accounts for about 11% of the state’s total tax collection of $13 billion. A 2019 Pelican Institute report titled “The Cost of Lawsuit Abuse” detailed how the threat of lawsuits resulted in 53 to 74 fewer wells being drilled. The industry’s reluctance to invest has cost Louisianans 2,000 jobs and $44 million to $113 million in additional economic benefits annually. A recent Blaze Media article said Louisiana is “losing more in royalty revenue than oil and gas producing companies are losing in profit.”
Despite the government’s active involvement in encouraging and approving industry operations while collecting billions of dollars in revenue, local governments portray themselves as victims. Their lawsuits, supported by Mr. Landry, create considerable uncertainty for the industry and the broader economy.
Energy policy analyst David Blackmon noted in 2019 that not one dollar from these lawsuits has gone toward restoration. On the other hand, “revenues generated by oil and natural gas activity serve as a primary funding source for Louisiana’s coastal restoration efforts,” said the Louisiana Mid-Continent Oil & Gas Association.
These lawsuits also have troubling financial implications. Trial lawyers representing the parishes have made significant contributions to political campaigns, including Mr. Landry’s campaign. A joint prosecution agreement signed during Mr. Landry’s tenure as attorney general also indicates that the state agreed not to support legal defenses offered by the industry. This decision marked a notable shift from Mr. Landry’s stance on these lawsuits in 2016, when he described one case as “superfluous litigation solely benefiting the attorneys involved.”
Coastal restoration is an important goal, but suing companies that operate legally and comply with government permits raises concerns about Louisiana’s viability as an investment destination. Mr. Landry should rethink his support for these cases and work to secure Louisiana’s economic future by protecting its essential industries and natural resources.
• Jason Hayes is the director of energy and environmental policy for the Mackinac Center for Public Policy.
Tariffs in reverse? A great strategy to drive industry out of state or possibly out of country when the current administration is trying to bring industry back perhaps?