Creating sustainable growth for La.
March 5, 2014Do I need umbrella insurance?
March 5, 2014
Lawsuit abuse is destroying the oil and gas industry from an exploration and production standpoint in the state of Louisiana, according to a trade organization.
Gifford Briggs, vice president of the Louisiana Oil and Gas Association, asked for community support with a grassroots campaign to stand up against frivolous lawsuits preventing the state from achieving its full potential in the oil-and-gas industry.
“We need everyone that is involved and impacted by this incredible industry to rally together at this critical time to stand up for this industry,” he said. “We as industry have to come together in a way that we never have before.”
Briggs outlined key points preventing Louisiana from competing with states such as Texas and the rest of the world at a recent South Central Industrial Association meeting.
One of the main reasons is the immense amount of legacy lawsuits, which refer to litigation brought forth by landowners who claim oil and gas industry operations have polluted or contaminated their properties.
As of September 2013, the number of legacy, flood protection authority and coastal lawsuits numbered more than 386 in Louisiana.
Briggs said no other state in the country suffers from these types of lawsuits, and only one country in the world has similar lawsuits.
“If we don’t think that makes a difference in where companies invest hundreds of millions of dollars, we’re crazy,” he said. “Greedy trial lawyers are making money off of the backs of everyone in this room.”
And as the number of legacy lawsuits rise, the amount of drilling in the state declines.
Since the year 2000, rig activity in the state has seen a steep decline with only 12 rigs in operation at one point during 2013.
“That is the lowest in recorded history in the state of Louisiana,” Briggs said.
While 50 percent of the industry in Louisiana defends lawsuits with frivolous allegations, it means fewer jobs and a loss of tax money toward education and infrastructure in the state.
“That’s not a recipe for success for our state or for our communities,” he said.
The Southeast Louisiana Flood Protection Authority filed a lawsuit in July against oil companies for erosion of the coast.
Briggs said the purpose of these lawsuits has nothing to do with attacking large oil companies, but rather five greedy law firms in Louisiana exploiting loopholes and pocketing millions of dollars from the employees of Louisiana’s oil-and-gas industry.
“The major oil companies have moved on and they are drilling oil everywhere else in the world,” he said. “As close to 95 percent of all the wells are drilled by independents.”
In the state of Louisiana, one in five people are involved in the oil-and-gas industry or have someone in their immediate family involved in the oil-and-gas industry, according to Briggs.
He asked for the audience’s support by signing up at changelouisiana.org to stay informed and learn how to help “Change Louisiana.”
Don Briggs, president of LOGA, said his organization represents companies who have a vested stake in Louisiana’s oil and gas industry and they will continue to educate the public and government of the industry’s importance.
“If you work in Louisiana, Louisiana Oil and Gas Association is your voice,” he said.
