ELR Citation: 54 ELR 20081
No(s). 23-30294 and 23-30422 (5th Cir. May 29, 2024)

The Fifth Circuit, 2-1, affirmed two district courts' orders remanding to state court lawsuits brought by Louisiana parishes against various oil and gas companies. The parishes initially sued in state court, arguing the companies violated Louisiana’s State and Local Coastal Resources Management Act by failing to obtain necessary permits for their exploration, production, and transportation operations, and violated terms of the permits they did obtain. The companies removed to federal court pursuant to the federal officer removal statute, arguing they satisfied each of the statute's requirements in light of refining contracts with the U.S. government during World War II. The district courts had granted the parishes' motions to remand, holding the companies' contract-based theory satisfied neither the "acting under" nor the "connected or associated with" requirements for federal officer removal. The circuit court found the district courts erred in holding the companies did not satisfy the "acting under" element, but agreed that the relationship between the companies' oil production and refinement activities was insufficient to satisfy the "connected or associated with" element given the lack of any contractual provision pertaining to oil production. It affirmed the orders remanding the suits to state court.