In a landmark trial, a jury has ordered Chevron to pay $744.6 million to restore damage caused to Louisiana’s coastal wetlands. This case marks the first of many lawsuits against global oil companies for their role in accelerating land loss along Louisiana’s rapidly disappearing coast. Chevron plans to appeal the verdict, which could set a precedent for other oil and gas firms facing billions in damages.
The jury found that Texaco, acquired by Chevron in 2001, violated Louisiana regulations by failing to restore wetlands impacted by dredging canals, drilling wells, and discharging wastewater into the marsh. A 1978 Louisiana law mandated that oil companies restore sites to their original condition after operations ended, but Texaco did not comply. The lawsuit claims Chevron chose profits over environmental responsibility, leading to contamination and land degradation.
The jury awarded $575 million for land loss, $161 million for contamination, and $8.6 million for abandoned equipment. Including interest, the total restoration cost exceeds $1.1 billion. Plaquemines Parish, which filed the lawsuit, originally sought $2.6 billion in damages.
Chevron’s attorney argued that the company operated lawfully and blamed land loss on factors like the Mississippi River levee system. However, the lawsuit holds Chevron accountable for exacerbating land loss, not being its sole cause.
This verdict could influence future litigation against oil companies in Louisiana, where dozens of cases are pending. Louisiana’s coastal restoration plans face funding shortages, and supporters hope payouts from these lawsuits will provide necessary funds.
— new from AP News