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NEW YORK, NY, May 05, 2022 /24-7PressRelease/ -- Litigation involving the oil industry has grown substantially over the last few decades. Changes in government administrations coupled with numerous state regulations have led to uncharted litigation matters at all court levels. Oil spills have contributed to the legal and business dilemmas, raising issues of health and safety alongside economic ones. Litigation and business strategies are not taken lightly by oil companies and investors. Besides for the law firms that any major oil company employ, companies will often seek outside business consulting aid to help advise.
One such individual is Isaac Toussie. Toussie has been involved on the financial and investor side of oil transactions for some significant US oil companies. His involvement in these deals and transactions consequentially led to his exposure to the legal battles that often trail the major oil companies. "One particularly challenging part of my work is helping companies and their attorneys navigate regulatory matters that arise over time while still maintaining existing business operations," he stated. Government reforms have changed so radically between the past two presidential administrations.
Events happening in California have proved to be the next avenue for potential litigation. State and city counselors in Los Angeles are pushing for new zoning demarcations banning the usage of certain oil wells and drilling sites. The county board members recently passed a 5-0 vote approving the proposition. The measure only applies to unincorporated areas of the county, but it will affect over 1,600 well and drilling sites. A major force propelling the measure was the recent oil spill in Inglewood Oil Field back in April. The counselors pointed to health and safety measures as two of the main reasons for the measure. The counselors have faced opposition from multiple oil companies, especially from those with active wells that will be shut down.
This tension could be the battleground for thousands of hours of litigation. The first hurdle for the counselors is the timetable by which to enforce this plan. Banning the use of an active oil well can lead to constitutional issues of a government taking. Additionally, the county must provide sufficient time to the companies by which to transition. Companies like Cooper & Brain Inc. could go out of business because of the measure. Output level drops and the loss of the wells in the newly banned zone would render the company unable to maintain profitability. Cooper & Brain could try to bring legal claims to slow down the implementation of the measure for as long as possible. Further legal battles are inevitable, yet indeterminable so early in the implementation of the measure. Toussie's business consulting advice in these matters has proved very helpful.
Toussie believes there is a way to balance and harmonize all of the vectors and that operators, environmentalists, and regulatory agencies must seek to create the optimum outcome for all parties. "Reaching for green technologies and methods of being less environmentally impactful are important for any business, but this is particularly so in the oil industry," says Isaac Toussie.
This article is presented for informational purposes only and should not be relied upon as financial or other advice.
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