Daily Report

Lawsuits against oil and gas companies based on environmental damage claims—called "legacy lawsuits" because they date back decades in some instances—are partly to blame for a "significant decrease" in conventional drilling activity across south Louisiana, according to a new report by the Center for Energy Studies at LSU. The report estimates the lawsuits and the negative perception associated with them have kept some 1,200 new wells from being drilled in Louisiana over the past eight years, translating into a loss of $6.7 billion. "The Impact of Legacy Lawsuits on Conventional Oil and Gas Drilling in Louisiana" study was completed by David Dismukes, an LSU professor and associate executive director of the Center for Energy Studies. It's an update of a 2005 study conducted for the Louisiana Department of Natural Resources and the Department of Economic Development, which found a "preliminary correlation" between legacy lawsuits and conventional drilling in Louisiana. The report says the decrease in drilling activity has cost Louisiana close to $10.5 billion in economic output, over 30,000 jobs and more than $1.5 billion in direct and indirect wages. Cheron Brylski of LouisianaTruth.org released a statement in response to the report, saying it "is simply a foolish example of a big-time special interest expressing its agenda under the guise of 'academic' research." She says Dismukes and others "representing 'Big Oil' in Louisiana" are simply trying to trash Act 312 of 2006, which covers legacy suits. Check out an overview of the Center for Energy Studies report and find a link to the full 62-page report here; and you can learn more about LouisianaTruth.org at its website here.

U.S. Attorney General Eric Holder has told Congress that a criminal investigation of the 2010 BP oil spill is progressing and that he expects to discuss the probe publicly "within months," The Times-Picayune reports. Testifying before the House Appropriations Committee on Tuesday, Holder also said that his prosecutors "are prepared to go to trial" against BP and other companies connected to the massive spill if settlement talks aren't successful. Holder said the trial would consider penalties for violation of the Clean Water Act and other federal statutes. "We were ready to go to trial yesterday," he added, reiterating that the government has a "strong case." The attorney general declined to discuss the settlement talks, which led federal District Judge Carl Barbier to put off this week's scheduled start of what was expected to be a lengthy and highly complicated trial. The trial is now scheduled to start next week, if the talks fail or if agreement is reached on some but not all of the issues scheduled to be litigated.

The attorneys and staff at Breazeale, Sachse & Wilson are mourning the passing of one of the firm's partners, Victor Sachse III, a prominent local lawyer and Army veteran who died on Monday at the age of 81. "Mr. Sachse started working at Breazeale, Sachse & Wilson in the mid-1950s after graduating from law school. He served in the military, where he spent some time in Korea. He was as proud of this firm as he was of his military service, and we were equally proud of his service—both here and for our country," reads a message on the firm's website. "He will be remembered as a distinguished and trusted attorney, but more importantly as a kind and thoughtful husband, father, and friend to all who knew him." Arrangements are pending with Rabenhorst Funeral Home.

Closing arguments are to begin this morning in the federal trial of R. Allen Stanford, who opted not to testify on his own behalf before the defense rested its case on Monday, The Houston Chronicle reports. The trial, which has been ongoing for six weeks, has featured a varied list of government lawyers and witnesses who claim the 61-year-old ran a $7 billion swindle through his Antigua bank, which sold certificates of deposit offering a higher interest rate than U.S. banks. An FBI agent who traced Stanford International Bank's money told jurors two-thirds of the bank deposits went to Stanford's other companies and his lavish lifestyle. But defense witnesses, including Stanford's tax attorney, claim the bank was legitimate and would be solvent today had the government not shut it down on Feb. 17, 2009. That same year, Stanford was arrested and eventually charged with 14 counts, including mail and wire fraud. He faces more than 20 years in prison if convicted. Closing arguments are expected to take four hours. Another hour will be spent instructing the jury before deliberations begin.

About 17,000 qualifying Louisiana Workers' Compensation Corp. policyholders will receive a share of a $23.5 million dividend declared by the LWCC Board of Directors, the company announced today. Individual dividend payments are based on a calculation taking into account premiums and longevity with LWCC. The dividend marks the ninth consecutive year LWCC has declared one for its policyholders, the company says, with total payments over that span topping $182 million. Payment to policyholders in 2011 for the 2010 year was $22.5 million. "This company has performed exceptionally well during a period when the workers' compensation industry nationwide has been challenged," says LWCC Chairman Donald "Boysie" Bollinger in a release. LWCC—a private, nonprofit mutual insurance company—is the largest writer of workers' compensation insurance in Louisiana.

A new state lawmaker from Livingston is reviving an annual debate over whether Louisiana should mandate drug testing for welfare recipients. Rep. Sherman Mack, a Republican beginning his first term in office, has proposed the measure for the legislative session that begins March 12. Mack's bill would require 20% of adults who receive aid through the Family Independence Temporary Assistance Program be drug-tested. Previous attempts to mandate such testing have repeatedly failed to win approval from lawmakers. Supporters say they want to make sure welfare checks pay for family needs, not drugs. Opponents say the proposal unfairly targets poor mothers, with no proof they are more likely to be on drugs than others who receive aid through the state. You can see the legislation, House Bill 380, here.

Today's poll question: Do you think state welfare recipients should have to undergo drug testing?

On hold: The United States says North Korea has agreed to suspend uranium enrichment and agreed to a moratorium on nuclear and long-range missile tests. State Department spokeswoman Victoria Nuland also says North Korea has agreed to allow International Atomic Energy Inspectors to verify and monitor the moratorium on uranium enrichment and confirm disablement of its nuclear reactor at Yongbyon. Her statement, released this morning, says the United States will meet with North Korea to finalize details for a proposed package of 240,000 metric tons of food aid.

Perfect fit: Kean's Fine Dry Cleaning is opening a tailor shop at its 1809 S. Sherwood Forest Blvd. location, now that owner Rock Rockenbaugh has hired three tailors who have worked for Jim Mayer at Mayer Co. Clothiers—which is closing after 27 years—for the past 17 years. Mayer, a mayoral candidate in this fall's election, says the tailors are the best in the area. He approached Rockenbaugh about hiring them when making arrangements for closing his fine clothing store, also on South Sherwood Forest Boulevard. Kean's has long offered basic alterations services, but will be able to expand tailoring services with the new hires. The tailor shop will typically be open six days a week, Monday through Saturday.

Get happy: Included in the recently released Gallup-Healthways Well-Being Index—which ranked Louisiana No. 36 among U.S. states for overall health of its residents—is a map claiming to chart the levels of happiness by state. On it, Louisiana is a pale shade of pea green, signifying it's in the "lower range" of happiness. That's the lowest ranking according the map, which divides the states into a "lower range," "midrange" and "higher range." The happiest states include Hawaii, North Dakota, Minnesota, Utah, Alaska, and Colorado. Aside from Louisiana, the least happy states include West Virginia, Kentucky, Mississippi, Delaware, and Ohio. Check out the map and a related article about it from The Atlantic here.

Where the heart is: For its "mix of 19th-century Victorian-era cottages and townhouses, as well as plantation homes, which are located in the surrounding countryside," St. Francisville is one of 64 cities on This Old House magazine's 2012 list of the "Best Old House Neighborhoods." St. Francisville is the lone Louisiana representative on the list. Check it all out here.