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Annual Institute on Mineral Law

Abstract

An oil or gas well blowout can be a scary event both during the blowout and, from a legal and economic perspective, subsequent to the blowout. During the blowout, the well control specialists take control and attempt to regain control of the well in the most expeditious, safe manner possible. The aftermath of the blowout does not present such a clear path in terms of the "specialists" needed to deal with the myriad of legal issues facing an operator. Multiple causes from simple human error to failure of equipment located thousands of feet in the ground can result in the loss of well control. To investigate and provide sound legal advice to an operator after a blowout, an attorney must approach the situation much like a coroner approaches an autopsy or post-morter- examination. The initial action involves an external examination to document what occurred, preserve evidence and generally assess the resulting damages. Subsequent to this initial investigation, the attorney must look deeper, or like a coroner, conduct an internal examination to find the evidence that establishes the specific causes and the particular damages resulting from the blowout. Upon completion of the external and internal examinations, the attorney must reconstruct, or again like a coroner, reconstitute the body of evidence for the operator and others to examine. This article seeks to provide practical advice on how to conduct a blowout investigation and the legal issues arising from such an event. In particular, the article will discuss the types of consultants needed for an investigation, issues of privilege during such an investigation and the desired results of such investigation. The article also will explore the legal issues and theories surrounding the potential prosecution of a claim to recover expenses and damages resulting from a blowout. Finally, the case law concerning the types of damages to which an operator may be exposed as a result of a blowout will be discussed. Therefore, while not exhaustive, this article hopefully will provide the reader with an overview of the legal issues arising from an oil or gas well blowout and with practical information on what can be a complex factual and legal event.

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