Citgo Petroleum v. LOUISIANA PUBLIC SERVICE

815 So. 2d 19, 2002 WL 399449
CourtSupreme Court of Louisiana
DecidedMarch 15, 2002
Docket2001-CA-1902 to 2001-CA-1904
StatusPublished
Cited by3 cases

This text of 815 So. 2d 19 (Citgo Petroleum v. LOUISIANA PUBLIC SERVICE) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citgo Petroleum v. LOUISIANA PUBLIC SERVICE, 815 So. 2d 19, 2002 WL 399449 (La. 2002).

Opinion

815 So.2d 19 (2002)

CITGO PETROLEUM CORPORATION and Conoco
v.
LOUISIANA PUBLIC SERVICE COMMISSION.
Lake Charles Pilots, Inc.,
v.
Louisiana Public Service Commission.

No. 2001-CA-1902 to 2001-CA-1904.

Supreme Court of Louisiana.

March 15, 2002.
Rehearing Denied May 24, 2002.

*20 Stephen C. Carleton, Baton Rouge, Henry D. Heck, Jr., Frank P. Simoneaux, Baton Rouge, Simoneaux, Carleton, Carleton, Dunlop & Olinde; Jack Capella, Metairie, George M. Cotton, Thomas A. Lane, Lane & Cotton; Thomas H. Huval, New Orleans, Michael K. Dees, Lake Charles, Jeansonne & Remondt; Kenneth M. Wright, Richard D. Moreno, Lake Charles, Wright, Everett & Moreno; Counsel for applicant (NO. 2001-CA-1902, 2001-CA-1904 & 2001-CA-1903).

Eva K. Gonzalez, John M. Lamers, Metairie, Counsel for Respondent (No. 2001-CA-1902, 2001-CA-1904 & 2001-CA-1903).

John M. Lamers, Metairie, John M. McCollam, New Orleans, Counsel for Trunkline LNG Company (Amicus Curiae)(No. 2001-CA-1902, 2001-CA-1904 & 2001-CA-1903).

*21 TRAYLOR, Judge.

The trial court in this matter vacated tariffs approved by the Louisiana Public Service Commission (LPSC) governing the fees and rates for the Lake Charles Pilots and remanded the matter to the LPSC for further proceedings. Pursuant to La. Const. art. IV, § 21(E), the ruling was directly appealed to this court. We review the rulings below to determine whether the LPSC has subject matter jurisdiction over the instant action and whether the LPSC may fix and establish fees and rates for pilotage service in the "outer bar," and establish which tariff is currently in effect. For the reasons which follow, we conclude that LPSC has subject matter jurisdiction over the instant action to establish pilotage fees and rates, that the LPSC must regulate "outer bar" pilotage services, and amend the trial court's judgment to reinstate the interim tariff.

FACTS AND PROCEDURAL HISTORY

The ten pilot members of Lake Charles Pilots, Inc., the duly incorporated association of the Associated Branch Pilots of the Port of Lake Charles (LCPI), have sole authorization to pilot seagoing vessels on the "navigable streams, channels, and boundary waters, within the Intracoastal Canal, Calcasieu and Sabine Rivers, bars, and passes," except specified routes along the Mississippi River. La.Rev.Stat. 34:1072, 1073. Pursuant to La.Rev.Stat. 34:1121-1127, the Associated Branch Pilots of the Port of Lake Charles Fee Commission (Fee Commission) has the exclusive right to establish the fees and rates charged by the LCPI pilots for pilotage service. The Fee Commission is comprised of eight members, four of whom represent the interests of the river pilots (the pilot fee commissioners) and four of whom represent the interests of the steamship industry (the industry fee commissioners).

Prior to the filing which is at issue in the instant case, LCPI was operating under the terms of a five-year tariff approved by the Fee Commission and implemented on October 1, 1994. In February 1998, before negotiations could begin to revise the tariff, the four industry fee commissioners resigned from the Fee Commission. Thereafter, Captain Malcolm Gillis, a pilot fee commissioner, certified in writing to the LPSC that a majority of the Fee Commission was unable to decide the fees and rates issue. This certification was made pursuant to La.Rev.Stat. 34:1122(D)(1), which provides that when a majority of the Fee Commission is unable to decide an issue, its members may certify the issue to the LPSC for expedited adjudication, and the LPSC's decision on the issue shall constitute the decision of the Fee Commission.

On September 17, 1998, LCPI filed with the LPSC a proposed tariff and an application for an increase in the pilotage fees and rates charged by LCPI. LCPI subsequently revised the proposed tariff on July 16, 1999. Unlike the 1994 tariff, the newly filed tariff regulated the pilotage fees and rates charged by LCPI only in the area colloquially known as the "inner bar" of the Calcasieu Ship Channel (that portion of the channel located within three geographical miles of the Louisiana coastline); pilotage fees and rates in the "outer bar" (that portion of the channel seaward of three geographical miles beyond the Louisiana coastline) were charged under a separate, unregulated tariff. On November 9, 1999, the LPSC issued its Order No. 23792, implementing the July 16, 1999 tariff on an interim basis (interim order), the proceeds of which were subject to escrow pending final resolution of the rate proceeding.

*22 Subsequently, following its March 22, 2000 Open Session, the LPSC in Order 23792-A (final order) framed the outer bar issue as follows:

Prior to establishing reasonable and just fees and rates for pilotage service and implementing a new tariff, this Commission must determine the extent of the compulsory pilotage area subject to regulation by the State of Louisiana and this Commission, and particularly, whether or not the outer bar ... should be included in the compulsory pilotage area served by the Pilots pursuant to the new tariff. (Emphasis added)

In answering this question, the LPSC did not reach the issue of compulsory pilotage after determining "the outer bar ... [is] not subject to the jurisdiction of the State of Louisiana or [the LPSC]." The order further granted a rate increase to the pilots for the inner bar only, fixing the target annual compensation per pilot at $285,000 per year. The LPSC also approved the addition of four new pilots to LCPI's roster, bringing the total to fourteen active pilots. This ruling was signed June 2, 2000 and made retroactive to November 9, 1999.

Intervenors CITGO Petroleum Corporation (CITGO) and Conoco, Inc. (Conoco),[1] (collectively "Industry Plaintiffs") filed a petition for judicial review of the LPSC's orders in the Nineteenth Judicial District Court.[2] In their appeal, the Industry Plaintiffs alleged that the LPSC lacked subject matter jurisdiction over the action because the conditions precedent to its jurisdiction were not met.[3] Alternatively, *23 the Industry Plaintiffs alleged that the interim and final orders are arbitrary and capricious on the ground that the LPSC's failure to regulate pilotage fees and rates in the outer bar is unlawful.

On April 3, 2001, the district court denied CITGO and Conoco's exception to the LPSC's jurisdiction. After a hearing on the merits of the petitions for judicial review, the district court vacated LPSC's orders and remanded the matter to the LPSC for further proceedings with instructions that the LPSC regulate pilotage fees on the outer bar as part of the final tariff. The court noted that the LPSC should make any adjustments or revisions it deems necessary to fairly resolve this matter; that the parties should be allowed to introduce additional evidence; and that the 1994 tariff would continue from November 9, 1999 until the date it is lawfully amended or terminated by the LPSC. Under the judgment, refunds or assessments deemed appropriate may be charged to the parties.

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