State v. Louisiana Land & Exploration Co.

85 So. 3d 158, 10 La.App. 3 Cir. 1341, 2012 WL 280607, 2012 La. App. LEXIS 102
CourtLouisiana Court of Appeal
DecidedFebruary 1, 2012
DocketNos. 10-1341, 11-843, 11-1016
StatusPublished
Cited by6 cases

This text of 85 So. 3d 158 (State v. Louisiana Land & Exploration Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Louisiana Land & Exploration Co., 85 So. 3d 158, 10 La.App. 3 Cir. 1341, 2012 WL 280607, 2012 La. App. LEXIS 102 (La. Ct. App. 2012).

Opinion

DECUIR, Judge.

|Jn this environmental remediation case, the State of Louisiana and the Vermilion Parish School Board contest three adverse rulings by three separate courts. These three matters have been consolidated for this appeal.

FACTS

The State of Louisiana and the Vermilion Parish School Board (hereinafter collectively “School Board”) seek remediation of a polluted sixteenth section of property in Vermilion Parish owned by the State and managed by the Vermilion Parish School Board. The pollution is alleged to be extensive and to be a threat to the fish, wildlife, and the safety of the seafood supply in the White Lake area. The Defendants are: Union Oil Company of California and Union Exploration Partners (collectively “Unocal”), Carrollton Resources, LLC, Chevron U.S.A., Inc., and Chevron Midcontinent, L.P. A mineral lease was granted on the property in 1935, and oilfield operations commenced in 1940.

Unocal admitted that it was responsible for environmental damage on the property and filed a motion to refer the case to the Louisiana Department of Natural Resources (LDNR) as required by Act 312 of 2006. See La.R.S. 30:29(C). The School Board objected, arguing that such a referral could not take place until all of the Defendants admitted responsibility, and the private claims were tried to the jury. The trial court agreed with the School Board. Unocal sought writs in this court (CW10-666) and the supreme court (2010-CC-1796). These writ applications were denied. See Germany v. ConocoPhillips Co., 07-1145 (La.App. 3 Cir. 3/5/08), 980 So.2d 101, writ not considered, 08-1161 (La.9/19/08), 992 So.2d 960; Bernard v. BP Am. Prod. Co., 07-1249 (LaApp. 3 Cir. 4/2/08), 981 So.2d 73; Tensas Poppadoc, Inc. v. Chevron USA Inc., 07-927 (LaApp. 3 Cir. 5/21/08), 984 So.2d 223. (Holding that such a conclusion is in accord with this ^court’s prior holding that an oilfield remediation ease should be tried in its entirety before the case is referred to the LDNR).

Unocal then filed a motion for partial summary judgment limiting the School Board’s remediation damage claims to the amount needed to fund the “feasible plan” mandated by Act 312. Unocal argued that Act 312 acts as a substantive cap on [160]*160remediation damages resulting from a tort or the implied restoration obligation of a mineral lease. The trial court agreed.

The School Board filed a writ application to this court which was denied (CW10-1310). While the writ application was under consideration, the School Board filed a motion in the trial court seeking to have Act 312 declared unconstitutional as applied. This motion was denied. The trial court’s rulings on the motion for partial summary judgment and the motion to have Act 312 declared unconstitutional were certified as final judgments. The School Board lodged an appeal (CA11-843).

In the second of the consolidated matters before us, the School Board filed a writ to this court (CW10-1341), alleging that the trial court erred in allowing Chevron U.S.A., Inc. to amend its answer to reverse its prior admission that it was a successor in interest to Unocal. Prior to this court acting on the writ, the trial court ordered a limited deposition concerning the relationship between Chevron U.S.A., Inc. and Unocal. After the deposition, the trial court granted Chevron U.S.A., Inc.’s motion for summary judgment and dismissed it from the suit. The School Board filed a suspensive appeal (CA11-1016) from the trial court’s judgment. This court granted the School Board’s writ application for the sole purpose of consolidating it with the School Board’s suspensive appeal of the trial court’s grant of summary judgment in favor of Chevron U.S.A., Inc., and both | .¡these matters were consolidated with the School Board’s appeal from the partial summary judgment in favor of Unocal.

GRANT OF PARTIAL SUMMARY JUDGMENT RELATING TO EXCESS REMEDIATION DAMAGES

The School Board contends that the trial court erred in granting partial summary judgment in favor of Unocal. Specifically, the School Board argues that the trial court erred in limiting remediation damages to the amount required to implement the “feasible plan” as determined under Act 312. We agree.

An appellate court reviews summary judgments de novo, applying the same criteria as the district court in determining whether summary judgment is appropriate. Schroeder v. Bd. of Supervisors of Louisiana State Univ., 591 So.2d 342 (La.1991). A motion for summary judgment is properly granted when the “pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show there is no genuine issue as to material fact, and that the mover is entitled to judgment as a matter of law.” La.Code Civ.P. art. 966(B).

In this case, we are called upon to decide a dispute between the parties over the interpretation of Act 312 of 2006, specifically La.R.S. 30:29. We must decide whether Act 312 of 2006 limits the amount of Plaintiffs recoverable remediation damages to the cost of the “feasible plan” selected through application of La.R.S. 30:29.

The interpretation of a statutory provision starts with the language of the provision itself. Sabine Parish Police Jury v. Comm’r of Alcohol & Tobacco Control, 04-1833 (La.4/12/05), 898 So.2d 1244.

“When the language of the law is susceptible of different meanings, it must be interpreted as having the meaning that best conforms to the purpose of the law, “and the meaning of ambiguous words” must be sought by examining the context in which they occur and the text of the law as a whole.” La.Civ.Code arts. 10 and 12; 14Sabine, 898 So.2d at 1250. However, “[wjhen a law is clear and unambiguous and its application does not lead to absurd consequences, [161]*161the law shall be applied as written, and no further interpretation may be made in search of the intent of the legislature.”

La.Civ.Code art. 9; Sabine, 898 So.2d at 1250.

Louisiana Revised Statutes 30:29 provides in pertinent part (emphasis added):

§ 29. Remediation of oilfield sites and exploration and production sites
A. The legislature hereby finds and declares that Article IX, Section 1 of the Constitution of Louisiana mandates that the natural resources and the environment of the state, including ground water, are to be protected, conserved, and replenished insofar as possible and consistent with the health, safety, and welfare of the people and further mandates that the legislature enact laws to implement this policy. It is the duty of the legislature to set forth procedures to ensure that damage to the environment is remediated to a standard that protects the public interest. To this end, this Section provides the procedure for judicial resolution of claims for environmental damage to property arising from activities subject to the jurisdiction of the Department of Natural Resources, office of conservation. The provisions of this Section shall be implemented upon receipt of timely notice as required by Paragraph (B)(1) of this Section. The provisions of this Section shall not be construed to impede or limit provisions under private contracts imposing remediation obligations in excess of the requirements of the department or limit the right of a party to a private contract to enforce any contract provision in a court of proper jurisdiction.
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85 So. 3d 158, 10 La.App. 3 Cir. 1341, 2012 WL 280607, 2012 La. App. LEXIS 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-louisiana-land-exploration-co-lactapp-2012.