Louisiana Attorney General Jeff Landry announced today his intention to sign off on a multi-million-dollar settlement with Freeport McMoRan over oil exploration and damage to the states delicate coastal wetlands and marshes.
The deal could become a template for future settlements between the state and other oil and gas companies.
The resolution releases Freeport McMoRan from liability for any current claims, triggering its dismissal from the coastal parish suits.
In exchange, Freeport will deposit the initial payment into a trust, followed by several smaller yearly payments.
Payments will not be distributed until the Legislature creates a special fund and new oversight board to hold and manage these dollars.
“The energy industry, which employs hundreds of thousands of our neighbors, is a crucial component to ensuring a vibrant economy and a safe environment in Louisiana,” Attorney General Landry stated. “The State’s energy industry has not only been responsible for creating jobs and prosperity, but it also has contributed tax revenues critical to funding coastal restoration and hurricane protection projects.”
If accepted by the Legislature, Freeport McMoRan will contribute up to $100 million toward state and local projects enhancing coastal restoration and hurricane protection. Freeport McMoRan will put money in the hands of environmental experts overseeing a Coastal Master Plan to protect Louisiana’s most vulnerable localities.
Landry says the action by Freeport McMoRan is a solid first step, but there are still many lawsuits that are driving oil and gas exploration and the companies engaged in the activity from the state.
“Job-killing lawsuits that make Louisiana unwelcome to business growth and that disregard the disastrous effects of federal policy,” concluded Attorney General Landry. “I trust the Legislature will defend private operators who were compliant with federal, state, and local laws and regulations.”