Democratic National Convention: Day 1

Shell employed an interesting legal tactic when it preemptively sued several environmental and activist groups in order to head off potential legal challenges to the company’s controversial Alaskan exploratory drilling program. The U.S. 9th Circuit Court of Appeals yesterday ruled Shell’s approach unconstitutional.

“Shell may not file suit solely to determine who would prevail in a hypothetical suit between the environmental groups” the federal Bureau of Safety and Environmental Enforcement reportedly said about the case.

The Natural Resources Defense Council, Alaskan Wilderness League, Greenpeace, Oceana and Audubon Alaska were among the 13 groups sued by Shell.

“The environmental groups were ‘aggrieved’ by the approval of Shell’s oil spill response plans, and the Bureau is the federal agency responsible for their approval,” the appeals court said. “Because its plans were approved, Shell was not ‘aggrieved’ by the Bureau’s actions. Moreover, since Shell is not a federal agency, it cannot possibly have any legal obligations under the APA to the environmental groups.” – As reported by Alaska Dispatch News

In its ruling, the court said Shell used a “novel legal strategy,” but it violated the constitution.

Shell plans to drill again this summer after initial efforts ran into complications when an unmanned rig ran aground while being towed. The company has spent over $5 billion on leases and associated costs to date.