BATON ROUGE, La. — Carbon Capture & Sequestration (CCS) in Louisiana faces a new hurdle after a Central Louisiana group filed suit Thursday, November 20 in the 19th Judicial District (Baton Rouge) over a very specific portion of the industrial activity – eminent domain.
The suit, filed by Save My Louisiana, Inc. as well as several property owners from Rapides, Allen and Vernon parishes, alleges that the state has participated in what the plaintiffs describe as a “scheme” with CCS companies to pass certain statutes to “provide for eminent domain and expropriation of private property for the purposes of pipelines to transport carbon dioxide, and for drilling wells for the purpose of the injection of that carbon dioxide into certain stratigraphic areas below the lands contained within the State of Louisiana.”
In the filing, the plaintiffs claim the current statutes have resulted in more than 33 applications for Class V test well projects and Class VI injection well projects.
Eminent domain is the government’s power to take private property for public use, even without the owner’s consent. This power is guaranteed by the Fifth Amendment, which mandates that “just compensation,” or fair market value, must be paid to the property owner. This process is often used for public projects like highways, schools and public utilities.
In Louisiana, the use of eminent domain for energy and infrastructure projects has been upheld in some cases and challenged in others, with courts typically weighing whether the purpose is predominantly public or private.
The lawsuit, in its explanation of standing, mentions environmental protections briefly, but spends most of its time focused on eminent domain. Geographically, the suit focuses on exhibits in Central Louisiana, but does include a map showing proposed injection wells across the state.
Six landowners from the aforementioned parishes joined the suit, stating their property could be subject to eminent domain for pipeline and/or storage purposes, as well as land unitization.
Land unitization, primarily used in the oil and gas industry, is the process of combining numerous individual land tracts and drilling units to jointly develop and produce resources from an entire geologic formation or reservoir. This is done to optimize production, improve efficiency and prevent waste of resources.
The lawsuit lists Governor Jeff Landry and Dustin Davidson, in his capacity as secretary of the Louisiana Department of Energy and Conservation, as defendants. As of publication, neither the governor’s office nor the department had issued a formal public response to the lawsuit.
In referencing the Louisiana Constitution, the filing cites several sections but places emphasis on Article I, Section 4 with regards to personal property, including parts B1 and B3.
B1 – Property shall not be taken or damaged by the state or its political subdivisions except for public purposes and with just compensation paid to the owner or into court for his benefit. Except as specifically authorized by Article VI, Section 21 of this Constitution, property shall not be taken or damaged by the state or its political subdivisions: (a) for predominant use by any private person or entity; or (b) for transfer of ownership to any private person or entity.
B3 – Neither economic development, enhancement of tax revenue or any incidental benefit to the public shall be considered in determining whether the taking or damaging of property is for a public purpose pursuant to Subparagraph (1) of this Paragraph or Article VI, Section 23 of this Constitution.
The lawsuit then lists the statutes at issue, many of which were passed during or after the Bobby Jindal administration:
In 2008, Act 315 (H.B. 1117) was passed and became effective Aug. 15, 2008.
In 2009, Act 517 (H.B. 661) became effective Aug. 15, 2009.
In 2020, Act 61 (S.B. 353) became effective Aug. 1, 2020.
In 2021, Act 326 became effective Aug. 1, 2021.
In 2024, Act 620 and Act 645 both became effective Aug. 1, 2024.
According to the filing, the plaintiffs argue these laws would allow the state and private operators to access private property for the underground injection and storage of carbon dioxide for an unspecified period of time, and could shift long-term risk and cost to Louisiana taxpayers.
At least one of those entities is a foreign corporation or subsidiary of a foreign corporation, according to the filing.
A trial date has not yet been set.
The Louisiana House debated House Bill 601 this past spring, a measure that would have restricted the use of eminent domain for carbon dioxide (CO₂) pipelines intended for underground storage. Introduced by Rep. Brett Geymann (R-Lake Charles), the bill would have required pipeline developers to obtain consent from at least 95% of landowners along a proposed route before invoking eminent domain.
“It is about private property rights,” Geymann said. “Some of the bills are attempts to kill carbon capture. This one is not.”
The bill garnered support from local officials concerned about the expansion of carbon capture projects. Allen Parish Police Jury Chairman Roland Hollins, who leads the Louisiana CO₂ Alliance, emphasized the importance of landowner consent.
“This bill does not shut down CO₂ pipelines. It does not shut down CCS. It simply affords landowners of this great state the ability to make a very important and fair decision about their land,” Hollins said.
Industry representatives argued the bill could slow or halt CCS development in Louisiana. Tommy Faucheux, president of the Louisiana Mid-Continent Oil and Gas Association, expressed concern over potential impacts to the state’s energy sector.
“We are trying to create the best opportunity for carbon capture projects to move forward in Louisiana,” Faucheux said. “We believe this bill makes that much harder and, in some cases, almost impossible.”
HB 601 died procedurally on June 9 before reaching the House floor.
Eminent domain does not affect the Air Products project under Lake Maurepas, but other projects have begun to surface in Livingston Parish and surrounding areas.
In late September, area landowners received certified letters requesting permission for survey activities related to the proposed Pelican Sequestration Hub, a joint venture between 1PointFive, an Occidental subsidiary, and Enbridge Inc. The project would transport captured CO₂ from industrial facilities to an underground storage site in Livingston Parish.
The project is anchored by a 25-year agreement to handle approximately 2.3 million metric tons of CO₂ annually from CF Industries’ planned low-carbon ammonia facility in Ascension Parish.
Parish Councilman Dean Coates organized a public meeting to address concerns, stating that questions and feedback would be relayed to company representatives.
Roughly one month later, the parish council adopted a resolution expressing its opposition to local CCS activity. The move followed a statement from Gov. Landry indicating that local governments could express opposition to carbon capture projects in their jurisdictions. The governor also temporarily halted new CCS applications statewide.
Industry groups have argued that CCS is increasingly intertwined with modern energy and manufacturing projects in the state.
“Our industry has already committed over $60 billion to projects that depend on carbon capture and storage,” David Cresson, president and CEO of the Louisiana Chemical Association, said. “A pause on applications, regardless of the reasoning, signals uncertainty for projects that enable lower-emissions production, support thousands of high-wage jobs and encourage future reinvestment.”
