Amdel Pipeline Inc. v. State

541 S.W.2d 821, 19 Tex. Sup. Ct. J. 439, 1976 Tex. LEXIS 241
CourtTexas Supreme Court
DecidedJuly 21, 1976
DocketNo. B-5767
StatusPublished
Cited by6 cases

This text of 541 S.W.2d 821 (Amdel Pipeline Inc. v. State) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amdel Pipeline Inc. v. State, 541 S.W.2d 821, 19 Tex. Sup. Ct. J. 439, 1976 Tex. LEXIS 241 (Tex. 1976).

Opinion

REAVLEY, Justice.

This case presents a question of the statutory authority of the State Parks and Wildlife Department to require those persons dredging materials from state owned tidal lands to obtain permits and to pay for spoil removed by the dredging.

Amdel Pipeline Inc. (Amdel), acting pursuant to a permit from the United States Army Corps of Engineers, removed materials which had silted into and filled the bottom of the approaches to its loading docks on the Neches River; the dredged material was deposited upon land owned by Amdel but subject to a perpetual spoil disposal easement of the United States. Am-del contends that existing statutes do not require it to obtain a permit from the State Parks and Wildlife Department (Department) to perform this work under these circumstances. Amdel further contends that it owes nothing to the Department or to the State for the spoil removed from the river bottom. The Department contends that Amdel may remove no material from these submerged lands except by approval of the Department and, in this case, by the payment of 25$ per cubic yard for the materials removed. The trial court sustained the position of the Department and rendered judgment that the State recover $28,-865.72 from Amdel. The Court of Civil Appeals held that the disposition of the cause depends upon the amount of certain elements in the dredged materials and, because that proof is absent from the present record, the case was remanded to the trial court for further development. 530 S.W.2d 647. We sustain Amdel’s position and render judgment in its favor.

Amdel owns and operates oil storage and ship terminal facilities on the Neches River near Port Neches and adjacent to the refinery of American Petrofina Company. The ship terminal facilities consist of three wharves or docks, one of which can accommodate large tankers. Tankers reach these docks through the Neches River Channel.

The Neches River Channel is a federal navigation project, approximately 40 feet deep and 400 feet wide, providing deep draft ship navigation from the Gulf of Mexico as far inland as the Port of Beaumont. Maintenance of this channel and project is [823]*823the responsibility of the United States Army Corps of Engineers. In order to provide the local contribution and assure maintenance of the federal project, the Beaumont Navigation District has obligated itself to the United States to provide all easements for spoil disposal, to provide and maintain levees on all spoil disposal areas, and to provide “depths in berthing areas and local access channels serving the terminals commensurate with depths in related project areas.”

Amdel’s ship terminal facilities are located adjacent to the Neches River Channel at a sufficient distance to insure that ships moored to its docks do not obstruct navigation in the channel. The use of these dock facilities requires deep water between the channel and the dock. When Amdel acquired these facilities on July 1, 1973, it discovered that the water approach areas had become filled to an extent that blocked the movement of deep draft vessels. The Corps of Engineers was then engaged in a maintenance program to clear the Neches River Channel, which afforded Amdel the opportunity to engage the services of the dredging contractor when the operations reached the site of Amdel’s facilities.

When the Neches River Channel is dredged by the Corps of Engineers, the material dredged from the river bottom is placed on land near the river. There is no location in the river suitable for this material to be placed. The United States has been given permanent easement rights in areas along the river for spoil disposal in this manner. One of these spoil disposal areas of approximately 435 acres is located on a tract of land owned by Amdel and adjacent to its ship facilities. Under its easement the United States has the perpetual right to deposit spoil and other excavated matter from the channel. This spoil disposal area has been used for nothing except disposal of dredged material since December 23, 1935. Material dredged from the river bottom between Amdel’s docks and the Neches River Channel has on all occasions been placed in the same disposal area used by the Corps of Engineers.

In 1973 Amdel applied for and received a dredging permit from the Corps of Engineers to conduct the maintenance dredging of the area adjacent to its dock facilities. The dredging has been completed under the permit which was conditioned upon Amdel obtaining such permits as might be required under state law. The Texas Parks and Wildlife Department required Amdel to obtain a permit conditioned upon Amdel’s payment of 25<p per cubic yard for the spoil material removed from the river bottom. Amdel objected to the requirement that payment be made and insisted that the spoil material was worthless to Amdel and was no more than a nuisance to be removed.

Amdel desires to do additional dredging in the same area to open the sides of approach from the channel and permit ships to be moved toward its docks at an oblique angle rather than being brought abreast of the docks and shoved in at a 90 degree angle. The parties have agreed that the decision as to the authorization and consequence of the completed dredging will govern the proposed enlargement.

When the results of the 1973 dredging showed that 111,022 cubic yards of material had been dredged and placed on the spoil disposal easement, the Department billed Amdel for $28,865.72 (25<t per cubic yard plus sales tax). Amdel refused to pay and then filed this suit seeking a declaratory judgment that it is not obligated to pay the Department for the spoil under these circumstances. The State answered and filed a counterclaim for the above amount. The facts were stipulated, and both parties moved for summary judgment. The trial court granted the motion of the State and rendered judgment that Amdel pay to the Department the stated amount.

The Court of Civil Appeals held that Am-del could be charged for the removal of any gravel, shell or mudshell, as well as for any marl or sand of commercial value. Since the record does not show the amount of the several enumerated materials within the conglomerate spoil dredged from the river by Amdel, the cause was remanded for a new trial in order that this proof could be [824]*824made. We respectfully disagree. The rules of the Department for the issuance of marl, sand and gravel permits define “fill materials” as “a conglomerate mixture of sand, shell, gravel and marl of such consistency and quality as to make it impractical to separate into any one or more of the above-named materials and which has a primary use and value as a fill material to increase the level of land area.” Amdel has made no objection and has raised no question about the particular contents of the dredged material. Amdel insists that it owes nothing— regardless of how many yards of marl or sand or mudshell might be in the spoil. We see no reason why the Department cannot sell the conglomerate mixture without separating the various materials. The difficulty we find with the Department’s position is more fundamental: it has no statutory authority to require Amdel to obtain a permit for the taking of these materials from the bottom of the Neches River under these circumstances.

The relevant statutes are now to be found in Chapter 86 of the Parks and Wildlife Code (Acts 1975, 64th Leg., Ch. 545, p. 1405).

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Bluebook (online)
541 S.W.2d 821, 19 Tex. Sup. Ct. J. 439, 1976 Tex. LEXIS 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amdel-pipeline-inc-v-state-tex-1976.