Fifth Circuit Bars Surety's Subrogation Claims Against Prior OCS Leaseholders for Decommissioning Costs

After paying over $11 million to the federal government for decommissioning obligations on West Cameron Block 168, surety Lexon Insurance sought reimbursement from prior leaseholders Chevron, BP, and Sojitz under theories of subrogation, contribution, and unjust enrichment. The Fifth Circuit affirmed summary judgment for the prior leaseholders, holding that Louisiana law—applied to fill gaps under OCSLA—barred recovery because the surety had no right of recourse against non-parties to the bonds and any enrichment was justified by the prior leaseholders' bargained-for indemnity agreements with the purchaser.