United States v. Louisiana

Background

The dispute involved the State of Louisiana and the United States over who owns and may use a defined part of the continental shelf offshore. The Court’s March 3, 1969 opinion rejected Louisiana’s claims to rights in the described shelf area. Substantial revenues from leases wholly inside that area were being held by the United States under an earlier interim agreement of October 12, 1956.

Reasoning

The central question was who has the right to explore for and take natural resources from the described offshore area. The Court entered a supplemental decree declaring that the United States has exclusive rights to explore and exploit the shelf area lying more than one foot seaward of the line described by coordinates in the decree. The Court held that Louisiana has no interest in those lands, minerals, or resources, and it ordered Louisiana and anyone claiming under it not to interfere with the United States’ rights. The Court also released to the United States all sums previously impounded that came from leases wholly within that area and relieved the United States of any further obligation to impound such future receipts.

Real world impact

Practically, the ruling gives the federal government control over exploration, development, and revenue from the defined offshore area and transfers impounded lease money to the United States. Leases that are partly inside and partly landward of the area remain unaffected and their revenues stay subject to impoundment under the interim agreement. The Court retained jurisdiction to issue further orders as needed to enforce this decree.