Just because an energy project is complete does not mean the threat of litigation has disappeared. This is the stark reality for many in the energy industry, where legal battles can emerge years after the final turbine is installed or the last well is capped.
Are you still liable for environmental damages years after the completion of your energy project? What are your options if someone pursues legal action against you?
What is past may not always stay in the past
In Texas, issues in the energy sector can surface years after a project ends, and the nature of the claim determines the legal deadline for initiating a lawsuit. For example:
- Contract disputes typically have a four-year limit.
- Personal injury claims generally require filing within a two-year timeframe.
- Property damage claims usually have a two-year window.
- Environmental violations may have longer or even no time limits.
These timeframes are not set in stone. Suppose a landowner discovers environmental damage years after your drilling operation ended or a partner company alleges a contract breach long after the project’s completion. These situations could lead to lawsuits well beyond the typical statute of limitations.
If damages were not immediately apparent, the clock might only start ticking upon their discovery. If you unknowingly hid information, it could extend the filing deadline. With continuous tort, ongoing harm may reset the statute of limitations.
Fortifying your business against future claims
To protect your company from energy litigation, consider these steps:
- Maintain detailed records of all project aspects.
- Ensure strict compliance with all regulations during the project.
- Secure proper insurance coverage, including tail coverage for potential future claims.
- Stay informed about changes in energy law that might affect past projects.
But remember, these measures alone do not guarantee protection against all potential legal actions. The energy industry’s legal landscape is intricate and ever-changing. What seems legally sound today might face challenges tomorrow.
An attorney can provide the guidance and support you need to minimize risk and avoid costly mistakes. When energy litigation becomes inevitable, they will strive to achieve the most effective outcome that protects your interests.