City Ordinance Attempting to Regulate Drilling Held Preempted by Louisiana State Statutes and Regulations

摘要

The U.S. Fifth Circuit Court of Appeals has held that a City of Shreveport ordinance preventing drilling operations within 1000 feet of a lake that is the main source of water for the city is pre-empted by state statute. Energy Management Corp, v. City of Shreveport, 397 F.3d 297 (5th Cir. 2005), In 1910, the Louisiana legislature authorized the transfer of Cross Lake to the City of Shreveport to provide a water supply to the city, The city was granted " 'full and plenary power over said lake' for the purpose of the 'protection and conservation of the city's water supply.' " Id. at 299. The deed of conveyance explicitly reserved for the benefit of the state "all minerals or mineral rights to and under said land, with a full and unrestricted right to the state, through its officers, agents or agencies, to enter thereon, and bore for oil, gas or any other mineral." Id. In 1926, the Louisiana legislature extended the geographic scope of the city's authority to the "land immediately surrounding the lake up to 5,000 feet," Id. In 1959, the Louisiana legislature created the Louisiana Office of Conservation (LOC), which was granted exclusive authority to grant or deny permits to drill and mine in the state. In 1990, the City of Shreveport adopted ordinances to protect its water supply, including a prohibition on any new drilling within 1000 feet of Cross Lake and established a regulatory scheme for new drilling between 1000 and 5000 feet of Cross Lake Energy Management Corporation (EMC) obtained a permit from the LOG to drill for oil and gas in and around Cross Lake.