- Chevron fined $745 million for marshland damage in Louisiana linked to legacy Texaco drilling operations.
- The jury awarded funds for land loss, environmental harm, and abandoned equipment; Chevron plans to appeal.
- The ruling sets a precedent amid 42 similar lawsuits, raising pressure on oil firms over legacy pollution.
A Louisiana jury ordered Chevron to pay $745 million for environmental damage in Plaquemines Parish. The ruling, delivered on April 4, followed a lawsuit filed in 2013.
The case focused on oil operations Texaco Inc. carried out before Chevron acquired the company in 2001. Local officials accused Texaco of violating a 1978 Louisiana law that requires companies to restore drilling sites after use. Texaco allegedly ignored this law and left the land degraded.
Officials say Texaco submerged land, abandoned equipment, and polluted wetlands. The damaged site lies southeast of New Orleans, in a region rich in marshland and biodiversity.
Jurors awarded $575 million for land loss, $161 million for environmental degradation, and $9 million for abandoned industrial equipment. The total fine equals about €693 million.
This case marks the first 42 lawsuits local Louisiana governments have brought against oil companies. Combined, these lawsuits could lead to billion-dollar claims.
Chevron quickly announced plans to appeal. Lead attorney Mike Phillips said the company found “legal errors” during the trial. Chevron also argued that it should not bear responsibility for actions Texaco took decades ago.
The Louisiana Mid-Continent Oil and Gas Association (LMOGA) criticised the decision. LMOGA warned that the ruling could weaken Louisiana’s standing in the energy industry and discourage investment in the state.
Legal analysts say the ruling could set a national precedent. Several oil firms now face increased pressure to address old environmental liabilities. Local governments across the U.S. have started targeting legacy pollution through litigation.
In Louisiana, many drilling sites sit within fragile ecosystems. Marshlands on the Gulf Coast protect against flooding and support diverse wildlife. Damage to these areas puts communities and species at risk.
Environmental advocates praised the jury’s decision. They believe the ruling holds companies accountable for the long-term harm they cause. Many also hope this outcome will accelerate coastal restoration efforts.
Chevron’s appeal could delay the fine’s enforcement. Legal observers expect the process to stretch over months or even years. Meanwhile, other lawsuits may pause as courts await the appeal’s outcome.
The ruling emphasises the need for responsible site management after oil extraction and warns companies of the legal and financial risks linked to neglecting environmental duties. With coastal erosion intensifying in Louisiana, pressure on oil companies continues to grow.
This case started in one parish but may influence policies and legal strategies across the Gulf Coast. Officials, environmental groups, and energy companies will closely watch the ripple effects.