(The Center Square) – Louisiana has reached a deal with ExxonMobil, resolving the state’s disputes with the company over coastal land erosion, Gov. Jeff Landry said in a social media post Thursday.
“This is huge for Louisiana, our Coast, and our environment! ExxonMobil has been in Louisiana for 115 years and we want them to be here for another 115 years!” Landry posted.
The settlement comes about five weeks after a major U.S. Supreme Court ruling sided with oil companies, including Chevron and ExxonMobil. The ruling allowed the companies to move similar environmental lawsuits from Louisiana state courts into federal venues.
A Louisiana state court jury had previously ordered Chevron to pay $744.6 million for coastal wetlands damage, but the high court unanimously vacated that ruling and sent the case back to federal court. Attorney General Liz Murrill stated at the time that the state would continue aggressively pursuing damages regardless of the venue.
“A major part of the resolution includes ExxonMobil partnering with the State to ensure the State’s orphan wells along Louisiana’s coast are addressed,” Landry added in his post.
The Louisiana Department of Energy and Natural Resources currently lists 6,500 documented abandoned and orphaned oil and gas wells, a record high that state auditors estimate will cost taxpayers approximately $730 million to fully plug and clean up.
Landry’s post on X included praise for the efforts of Murrill, her team, and ExxonMobil CEO Darren Woods for working out the framework for the deal. Murrill told The Advocate that Louisiana has reached a deal “in principle,” but she noted “documents still need to be drawn up and signed.”
On Tuesday, Louisiana lawmakers voted to approve the Louisiana Energy Protection Act, which would grant companies and individuals in the state legal immunity against climate change litigation.
