The Supreme Court of the United States on Friday issued an 8-0 decision favoring oil and gas companies in a Louisiana environmental dispute, allowing the case to be reconsidered in federal court after a state jury previously imposed hundreds of millions of dollars in damages.

The ruling centers on lawsuits filed by Louisiana coastal parishes against major energy companies, including Chevron, over alleged environmental damage tied to decades of oil and gas operations. A jury in Plaquemines Parish had ordered Chevron to pay more than $740 million to address harm to the state’s coastline.

Energy companies argued the case should be heard in federal court because some of their activities date back to World War II, when they operated as contractors for the federal government. They have also maintained that they should not be held liable for actions taken before modern environmental regulations were enacted.

The Supreme Court’s decision does not resolve the underlying claims; instead, it allows the companies to pursue their arguments in federal court, effectively reopening the legal process and potentially delaying enforcement of the state court judgment.

The lawsuits stem from long-standing concerns over coastal land loss in Louisiana, where more than 2,000 square miles have disappeared over the past century, according to the United States Geological Survey. State officials warn that thousands more square miles could be at risk in the coming decades. Oil and gas infrastructure, including canals, drilling sites, and wastewater disposal, has been cited as a contributing factor.

The case is part of a broader set of lawsuits filed in 2013, accusing major oil companies, including Chevron and ExxonMobil, of violating Louisiana environmental laws by failing to restore wetlands impacted by their operations.

Republican Gov. Jeff Landry previously supported the lawsuits during his tenure as state attorney general, despite his broader alignment with the energy industry. Attorneys representing local governments have argued that the appeal to the Supreme Court was intended to delay accountability.

The companies sought review after the United States Court of Appeals for the Fifth Circuit ruled in 2024 that the case could proceed in state court. The high court’s decision reverses that path, giving the companies another opportunity to contest jurisdiction.

Justice Samuel Alito did not participate in the case, citing financial ties to ConocoPhillips.

The outcome shifts the legal trajectory of one of the most closely watched environmental cases tied to the oil and gas industry, with broader implications for similar lawsuits and disputes over federal versus state jurisdiction.