Multi-Billion Dollar Lawsuit Against Big Oil!
Thursday,
August 1st, 2013
New
Orleans, Louisiana
WILL BIG OIL FINALLY
PAY THE PIPER ?
A lawsuit against Big Oil for
environmental damage? Are you kidding
me? Who could possibly have thunk it? Why it’s almost blasphemous to challenge the
oil industry in a state where oil revenue has been the mother’s milk for both
campaign contributions and government spending for longer than anyone cares to
remember. Oh, sure, oil companies big
and small have rarely received as much as a slap on the wrist for the extensive
environmental damage that has been a significant factor down in Louisiana losing
almost 2000 square miles of coastal land since the 1930s. But now, it may be time to pay the piper for
all those years of neglect.
Certainly, one cannot blame the
massive land loss and environmental damage solely on the oil industry. But over the past 70 years, by cutting
through thousands of miles of Louisiana wetlands to reach valuable oil drilling
locations, and then by digging pipeline canals, vast wetlands destruction took
place. In Louisiana, officials in charge
of protecting these invaluable coastal wetlands have, in most cases, let the
private sector off the hook and turned to government funding, both state and
federal, in a weak attempt to reverse the damage. The state’s slogan cold well
be, “quick to complain, but reluctant to aim at those who are responsible.”
But that attitude changed a bit in
the past few days. Under Louisiana law,
the governor appoints a number of levee boards that are charged with the
responsibility of protecting landowners from flooding up and down the
Mississippi River, as well as throughout the wetlands. And being appointed by the governor, they
generally adhere to his biding. A south
Louisiana levee board, which is charged with protecting areas surrounding
greater New Orleans, took the bold step of filing a multi-$billion lawsuit
against 97 oil companies, operating throughout the state including BP, Mobile,
and Exxon.
The lawsuit, filed by the
Southeast Louisiana Flood Protection Authority-East, alleges, that “the oil
network functions as a mercilessly efficient, continuously expanding system of
ecological destruction -- killing vegetation, eroding soil and allowing salt
water into fresh water areas.” The
filing further charged: “What remains of
these coastal lands is so seriously diseased that if nothing else is done, it
will slip into the Gulf of Mexico by the end of this century, if not sooner.”
So how is Louisiana Gov. Bobby
Jindal, who appointed the various board members and who has received strong
financial support from the oil industry, reacting? “Livid” and “how dare they” would be cautious
words. He accused trial lawyers of “high
jacking” the levee board, influencing them to file suit, called such legal
action outrageous, and demanded the law suit be dismissed and the lawyers
fired. But levee board members say that
this is a question of being responsible, and that they don’t plan to back
down. As board member and noted author
(“Rising Tide”) John Berry says:
“Like Pottery Barn, we just want them to fix what they broke.”
Oil has been the backbone of the
south Louisiana economy for many years. Louisiana was seduced by an
outside industry full of vast economic promises. The money came in easily and
there can be no dispute that many new jobs were created. But there is a cost to the spoils of oil
production, and this new lawsuit claims that this untold cost has not been
nearly repaid.
Public officials have been too
often lured by the financial temptations. A number of Louisiana politicians,
including Gov. Huey Long in the 1930s and Plaquemines Parish dictator Leander
Perez in the 1950s, made off like bandits by creating family controlled
corporations, and awarding themselves public oil leases that made them hundreds
of millions of dollars. Oil company campaign cash has flowed into state
and local political campaigns for decades.
Perez was particularly aloof
from the public interest when he used his political clout to blackmail then
Governor Earl Long back in the late 1940s to reject a federal-state split of
off shore oil. President Truman forged a compromise on the federal –state
land dispute by offering Louisiana two thirds of all off shore oil out to a
three mile boundary, then one third of all production from that point on out
into the Gulf. Perez opposed the deal as his “vested interest” made him greedy,
and Louisiana ended up receiving not one penny after a protracted battle all
the way up to the U.S. Supreme Court. The failure to take this settlement has
cost Louisiana, by several studies, more than $500 billion (that’s billon with
a “B”) in lost revenue.
Remember the 1953 movie
Thunder Bay? Jimmy
Stewart plays an oil wildcatter who discovers oil in the Gulf. When the locals rise up in arms, Stewart
makes no bones about what they face. “There’s oil under this
Gulf. We need it. Everybody needs it. Without oil, this
country of ours would stop and start to die. And you would die. You
die,” he tells the crowd.
“You can’t stop progress. Nobody can.”
Stewart might have
been right, but history tells us time and again that with resources and power
there is responsibility. Did Louisiana
accept the riches of the land, but fail to demand that those who set the rules,
those who govern, be good stewards of these bountiful resources? Or did the state just stand by, pocket the
money, and demand little in protection and environmental accountability?
Will the lawsuit
prevail? Probably not. It will be hard to overcome the objections of
Jindal who is so vehemently opposed to any legal effort that would hold the oil
industry accountable. In years past, the
Bayou State made a deal with the Devil.
It would seem to be a good faith effort by the levee board to see that
there is payback time. But their task is
daunting.
The fault really
belongs at the feet of public officials, who for years failed to enforce the
state’s environmental laws. “O! I have ta’en too little care of this,”
said Shakespeare’s King Lear. These
words can easily be the epitaph of those in charge -- those politicians who
made a bad environmental bet on the Bayou.
Peace and Justice
Jim Brown
Jim Brown’s syndicated column
appears each week in numerous newspapers throughout the nation and on websites
worldwide. You can read all his past columns and see continuing updates
at http://www.jimbrownusa.com. You can also hear Jim’s
nationally syndicated radio show each Sunday morning from 9 am till 11:00 am,
central time, on the Genesis Radio Network, with a live stream at http://www.jimbrownusa.com.