The federal district court for the Middle District of Louisiana enjoined the Livingston Parish Government and related parties from enforcing a moratorium on construction and drilling of Class V wells, seismic surveys, and other activities. The plaintiff had entered into a Carbon Dioxide Storage Agreement with the State of Louisiana and intended to build a carbon sequestration facility. The court rejected the Parish defendants’ arguments that the plaintiff lacked standing to challenge the moratorium and that the claims were unripe. The court further found that the plaintiff had shown a likelihood of success on the merits because the moratorium was preempted due to its encroachment on the field of underground injection control, an area in which the Louisiana Legislature granted the State pervasive authority to regulate. The court also found that the plaintiff faced irreparable harm and concluded that because State law preempted the moratorium, a preliminary injunction to enjoin the moratorium’s enforcement would serve the public interest and would not cause harm.

Lawsuit brought by company developing carbon sequestration project challenging local ordinance that attempted “to improperly place a 12-month moratorium on the construction and drilling of Class V well, as well as seismic surveying.”

Air Products Blue Energy, LLC v. Livingston Parish Government

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Louisiana Federal Court Enjoined Enforcement of Moratorium on Carbon Sequestration Project Work

Filed

United States of America

Louisiana

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Louisiana Federal Court Enjoined Enforcement of Moratorium on Carbon Sequestration Project Work

Policy instrument

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance