Oral Argument: Chevron USA Inc. v. Plaquemines Parish: When Fueling WW2 Meets Leads to Lawsuits

Chevron USA Inc. v. Plaquemines Parish | Oral Argument Date: 1/12/26 | Docket Link: Here

Oral Advocates:

1. For Petitioner (Chevron): Paul D. Clement, Alexandria, VA argues for Petitioner Chevron.
2. For United States (as Amicus Curiae Supporting Petitioner): Aaron R., Assistant to the Solicitor General, Department of Justice argues for United States as amicus curiae.
3. For Respondent: J. Benjamin Aguiñaga, Solicitor General, Baton Rouge, LA argues for Respondent Plaquemines Parish.

Question Presented: Whether oil companies can remove a state lawsuit into federal court involving oil production if the oil companies provided services under a federal contract for oil refining but not production.

Overview: Oil companies that fueled WWII fighter planes face $744.6 million in state court verdicts for 80-year-old production methods, creating unprecedented federal contractor liability exposure with massive removal jurisdiction implications.

Posture: Fifth Circuit denied en banc rehearing by narrow 7-6 vote after split panel affirmed remand.

Main Arguments:

• Chevron (Petitioner): (1) 2011 amendment eliminated causal-nexus requirement through "relating to" language expansion; (2) Fifth Circuit improperly reinstated contractual-direction test rejected by other circuits; (3) Oil production activities directly connected to federal avgas contracts through pricing terms and wartime regulations

• Louisiana (Respondent): (1) No genuine circuit split exists among courts applying "connection or association" standard; (2) Case lacks national importance beyond fact-specific contractor disputes; (3) Federal contracts remained silent about production methods, requiring sufficient connection between challenged conduct and federal directives

Implications: Chevron victory expands federal contractor protection from state court liability for activities connected to federal work, potentially encouraging emergency contracting. Louisiana victory maintains state environmental enforcement authority while exposing federal contractors to massive local jury verdicts for wartime activities.

The Fine Print:

• 28 U.S.C. § 1442(a)(1): "A civil action...commenced in a State court against...any officer (or any person acting under that officer) of the United States...for or relating to any act under color of such office...may be removed"

• State and Local Coastal Resources Management Act: Requires compliance with environmental standards for oil and gas operations in Louisiana coastal zone

Link to Opinion: TBD.

Website Link to Opinion Summary: TBD.

Timestamps:

[00:00:00] Argument Intro

[00:01:54] Argument Begins

[00:02:01] Chevron Opening Statement

[00:04:26] Chevron Free for All Questions

[00:19:20] Chevron Round Robin Questions

[00:34:43] United States as Amicus Curiae Opening Statement

[00:35:48] United States Free for All Questions

[00:45:50] United States Round Robin Questions

[00:52:13] Plaquemines Opening Statement

[00:53:57] Plaquemines Free for All Questions

[01:10:14] Plaquemines Round Robin Questions

[01:16:07] Chevron Rebuttal