US court halts drilling at ConocoPhillips project in Alaska
U.S. Court News
A federal appeals court ordered work to stop at a major oil project on Alaska’s North Slope, siding with conservation and Indigenous groups.
The decision Saturday by the 9th U.S. Circuit Court of Appeals will stop on-the-ground work for the winter at the Willow project operated by ConocoPhillips Co., the Anchorage Daily News reported Sunday.
Ice roads support wintertime work at projects on Alaska’s North Slope, but they melt in the spring and that drastically reduces what can be done for all but a handful of months.
The Willow project in the National Petroleum Reserve-Alaska was expected to provide jobs for about 120 people this year.
Sovereign Inupiat for a Living Arctic, the Center for Biological Diversity, Friends of the Earth and other groups sued last fall to stop the project altogether, not just in winter. They argue that the Trump administration didn’t follow environmental laws before approving the project.
This month, the groups asked the 9th Circuit to overturn a U.S. District Court decision to allow winter work to continue. After the groups appealed, short-term work was halted.
Ninth Circuit Judges William Canby and Michelle Friedland agreed that the plaintiffs would be harmed without an injunction that stops the work until the court can rule on the case itself.
ConocoPhillips spokeswoman Natalie Lowman didn’t say in an email Sunday whether the company plans to appeal the work stoppage.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.