In a historic ruling with major implications for Louisiana’s energy sector and environmental restoration, a jury in Plaquemines Parish on Friday ordered Chevron to pay $744 million in damages for its role in coastal wetlands destruction. The verdict is the first of 42 lawsuits filed since 2013 by coastal Louisiana parishes targeting decades of alleged environmental violations by oil and gas companies.
The case, Plaquemines Parish v. Chevron USA, Inc., centers on claims that Texaco—now part of Chevron—caused extensive land loss through canal dredging and infrastructure work without proper mitigation or compliance with state permitting laws. This jury trial marks a significant legal precedent in efforts to hold energy producers financially responsible for Louisiana’s rapidly disappearing coastline.
“This is about responsibility,” said lead parish attorney John Carmouche. “If somebody causes harm, fix it.”
Chevron maintains the activities were legal, permitted, and in some cases directed by the federal government, especially during wartime operations. The company repeatedly attempted to move the case to federal court, but those efforts were denied, with the U.S. 5th Circuit Court affirming state court jurisdiction in 2022.
While Plaquemines Parish sought nearly $3 billion in damages, the $744 million award is still considered a landmark. Legal observers believe the ruling could trigger a wave of similar verdicts, potentially involving billions more in damages from other energy companies across Louisiana’s coast.
Industry leaders swiftly condemned the decision. The Grow Louisiana Coalition called it a “shortsighted, flawed verdict” that endangers tens of thousands of oil and gas jobs. The Pelican Institute for Public Policy labeled the outcome a setback for the new state administration and warned it could deter future investment.
LABI President Will Green said the verdict “threatens economic benefits” and creates a hostile business environment. “This verdict should absolutely be appealed,” Green stated. “It paves the way for more frivolous lawsuits that undermine economic stability, hurt Louisiana families, and only benefit lawyers.”
Oil and gas advocates say the lawsuits unfairly target companies for decades-old, lawful activity. They argue the energy sector funds billions in state revenues, including for infrastructure and coastal restoration.
However, environmental groups and parish attorneys argue the industry cut more than 10,000 miles of canals through wetlands, accelerating erosion and sea-level rise, with minimal repair or accountability. Louisiana continues to lose a football field’s worth of land every 100 minutes, according to state officials.
“This ruling shows that the courts are finally listening,” said one environmental advocate familiar with the case.
Chevron is expected to appeal the decision.
