Air Products Blue Energy, LLC v. Livingston Parish Government

CourtDistrict Court, M.D. Louisiana
DecidedDecember 26, 2022
Docket3:22-cv-00809
StatusUnknown

This text of Air Products Blue Energy, LLC v. Livingston Parish Government (Air Products Blue Energy, LLC v. Livingston Parish Government) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Air Products Blue Energy, LLC v. Livingston Parish Government, (M.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF LOUISIANA AIR PRODUCTS BLUE ENERGY, LLC CIVIL ACTION VERSUS 22-809-SDD-RLB LIVINGSTON PARISH GOVERNMENT, LIVINGSTON PARISH COUNCIL, and JASON ARD

RULING Before the Court is the Motion to Dismiss1 filed by Defendants Livingston Parish Government and Livingston Parish Council (“Livingston Parish” or “Defendants”). An Opposition2 was filed by Plaintiff Air Products Blue Energy, LLC (“Air Products or Plaintiff”), to which Defendants filed a Reply.3 The Court also addresses Plaintiff’s Motion for Preliminary Injunction,4 which Defendants do not oppose beyond arguing that this Court lacks subject matter jurisdiction to issue the requested relief.5 For the following reasons, Defendant’s Motion to Dismiss is denied, and Plaintiff’s Motion for Preliminary Injunction is granted. I. BACKGROUND Air Products challenges a local ordinance of Livingston Parish that provides for a twelve-month moratorium on all activities related to the drilling of Class V wells. Air Products, a corporation based in Pennsylvania, seeks to drill at least one Class V test well beneath Lake Maurepas and within Livingston Parish.6 Air Products also plans to

1 Rec. Doc. 97. 2 Rec. Doc. 105. 3 Rec. Doc. 117. 4 Rec. Doc. 20. 5 Rec. Doc. 26, p.1. 6 Rec. Doc. 19, ¶ 40. conduct a subsurface seismic survey of Lake Maurepas beginning in December 2022. Depending on the outcome of the testing and survey, Air Products anticipates building a larger carbon sequestration facility beneath the lake.7 This facility will inject and store carbon dioxide underground with the aim of reducing greenhouse gas emissions.8 The Louisiana Legislature has expressly authorized the use of State property for

carbon sequestration projects.9 On October 13, 2021, Air Products entered into an agreement with the State (the “Storage Agreement”), granting Air Products: the sole and exclusive right to control, or perform all activities on the Property as may be necessary or incidental to the Permitted Purposes, including, but not limited to . . . viewing and performing testing, such as geological and geophysical surveys, seismic tests, and other testing and data relating to the Property and Storage Reservoirs to determine the capacity and suitability of the Storage Reservoirs for the Permitted Purposes.10

The Storage Agreement pertains to state-owned water bottoms in Lake Maurepas, a portion of which are located within the boundaries of Livingston Parish.11 In early September 2022, Air Products commenced preparatory work for the drilling of the Class V test wells.12 However, Air Products discontinued its work later that month when it learned that Livingston Parish was considering steps to prohibit such activity.13 On October 13, 2022, Livingston Parish adopted a twelve-month moratorium (“the Moratorium”) on “any activities associated with Class V wells where the well is specific to geologic testing of rock formation, monitoring, drilling, or injecting of CO2 for long term

7 Id., ¶ 24. 8 Id., ¶ 26. 9 La. R.S. 30:209(4)(e)(ii) (providing that the State may “enter into operating agreements whereby the state receives a share of revenues from the storage of . . . carbon dioxide . . . [by] establishing a . . . carbon dioxide storage facility in an underground reservoir”). 10 Rec. Doc. 20-2, p. 18. 11 Id., p. 2. 12 Rec. Doc. 19, ¶ 45. 13 Id. storage.”14 Air Products filed this suit, seeking both declaratory and injunctive relief. Air Products moves for a preliminary injunction that would allow it to carry on with its carbon sequestration project—ideally, by December 21, 2022.15 According to Air Products, its upcoming plans involve two specific activities. First, Air Products seeks to continue its

preparatory work for the drilling of Class V test wells, including securing access routes and preparing the well pad location.16 Second, Air Products plans to conduct a seismic survey of Lake Maurepas.17 It is undisputed that Air Products, through its contractor, is fully permitted by the State of Louisiana to perform both activities.18 In response to the instant suit and Motion for Preliminary Injunction, Defendants filed a Motion to Dismiss for lack of subject matter jurisdiction. Because subject matter jurisdiction affects the Court’s authority to adjudicate the case before it, the Court addresses the jurisdictional issue first.19 II. Motion to Dismiss

Livingston Parish moves to dismiss, asserting a lack of subjection matter jurisdiction. A motion to dismiss for lack of subject matter jurisdiction, under Federal Rule of Civil Procedure 12(b)(1), may be asserted at any time.20 The party asserting that the court has jurisdiction bears the burden of proving that the court may adjudicate the case.21 In determining whether it has subject matter jurisdiction, the court may look at the

14 Rec. Doc. 4 (certified copy of Ordinance 22-49). 15 Rec. Doc. 20-1, p. 1. 16 Id., p. 2. 17 Id. 18 Rec. Doc. 19, ¶ 42. 19 See Moran v. Kingdom of Saudi Arabia, 27 F.3d 169, 172 (5th Cir.1994). 20 Giles v. NYLCare Health Plans, Inc., 172 F.3d 332, 336 (5th Cir.1999). 21 Ramming v. United States, 281 F.3d 158, 161 (5th Cir.2001). complaint alone, the complaint supplemented by undisputed facts in the record, or the complaint supplemented by undisputed facts plus the court's resolution of disputed facts.22 A 12(b)(1) motion should be granted only if it appears certain that the plaintiff can prove no set of facts that would entitle him to relief.23 In disputing subject matter jurisdiction, Livingston Parish contends that (1) Air

Products lacks standing to challenge the Moratorium and (2) Air Products’ request for a preliminary injunction is not sufficiently ripe for adjudication. The Court addresses each issue in turn. 1. Standing “The standing doctrine is a threshold inquiry to adjudication, which defines and limits the role of the judiciary.”24 “It is well settled that unless a plaintiff has standing, a federal district court lacks subject matter jurisdiction to address the merits of the case.”25 “In the absence of standing, there is no ‘case or controversy’ between the plaintiff and defendant which serves as the basis for the exercise of judicial power under Article III of the constitution.”26 “The key question is whether the plaintiff has ‘alleged such a personal

stake in the outcome of the controversy’ as to warrant federal court jurisdiction.”27 “[T]he irreducible constitutional minimum of standing contains three elements.”28 “First, the plaintiff must have suffered an injury in fact—an invasion of a legally protected interest which is (a) concrete and particularized, and (b) actual or imminent, not

22 Id. 23 Home Builders Ass'n of Miss., Inc. v. City of Madison, Miss., 143 F.3d 1006, 1010 (5th Cir.1998); see also Ramming, 281 F.3d at 161. 24 In re FEMA Trailer Formaldehyde Prod. Liab. Litig., 570 F. Supp. 2d 851, 853 (E.D. La. 2008) (citing McClure v. Ashcroft, 335 F.3d 404, 408 (5th Cir. 2003) (citation omitted)). 25 Id. 26 Id. (citing Warth v. Seldin, 422 U.S. 490, 498–99 (1975)). 27 Id. (quoting Baker v. Carr, 369 U.S. 186, 204 (1962)). 28 Lujan v. Defs. of Wildlife, 504 U.S. 555, 560 (1992).

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Air Products Blue Energy, LLC v. Livingston Parish Government, Counsel Stack Legal Research, https://law.counselstack.com/opinion/air-products-blue-energy-llc-v-livingston-parish-government-lamd-2022.