Residents Displaced by Massive Sinkhole Reach $48 Million Settlement With Mining Company

The 30-acre Bayou Corne sinkhole.Jeffrey Dubinsky for Leanweb.org/LMRK.org


Twenty months after a 30-acre sinkhole opened up in the swamp behind their community, Bayou Corne, Louisiana, residents reached a $48 million settlement with the salt-mining company Texas Brine. Geologists say the company’s collapsed storage caverns likely triggered the environmental catastrophe and the series of small earthquakes that accompanied it. The class-action lawsuit, filed by the 90 homeowners who hadn’t taken buyout offers from the company, was scheduled to go to trial next week. Residents of the community of 300 have been under a mandatory evacuation order since August of 2012 over fears that explosive-level gases might collect under their homes—although some residents have installed air monitors in an effort to wait it out.

Per the Baton Rouge Advocate:

“We firmly believe the $48 million is a really good settlement number,” said Larry Centola, one of the attorney’s representing the owners and residents of about 90 homes and camps in the Bayou Corne area.

The settlement comes a few weeks after Texas Brine closed on the last of the 66 direct, out-of-court property buyouts and appears to provide a path toward conclusion for another wave of Bayou Corne residents displaced by the sinkhole disaster now more than 20 months old.

As I reported in a story for the magazine last year, the sinkhole has confounded geologists and state regulators, who previously believed that it was impossible for an underground salt cavern like the one underneath Bayou Corne—and used for natural gas storage by energy companies all over the Gulf Coast—to collapse from the side. But that’s what happened. In the meantime, residents have been left to wonder if their community will meet the same fate as the town next door, Grand Bayou, which was evacuated and reduced to empty slabs after a natural gas leak a decade earlier.

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