CNG Producing Co. v. Sooner Pipe and Supply Co.

483 So. 2d 1215, 1986 La. App. LEXIS 6089
CourtLouisiana Court of Appeal
DecidedFebruary 14, 1986
DocketCA-3812
StatusPublished
Cited by6 cases

This text of 483 So. 2d 1215 (CNG Producing Co. v. Sooner Pipe and Supply Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CNG Producing Co. v. Sooner Pipe and Supply Co., 483 So. 2d 1215, 1986 La. App. LEXIS 6089 (La. Ct. App. 1986).

Opinion

483 So.2d 1215 (1986)

CNG PRODUCING COMPANY
v.
SOONER PIPE AND SUPPLY COMPANY, et al.

No. CA-3812.

Court of Appeal of Louisiana, Fourth Circuit.

February 14, 1986.
Rehearing Denied March 19, 1986.
Writ Denied May 16, 1986.

Richard K. Leefe, Partee, Leefe, Waldrip & Roniger, New Orleans, for plaintiff-appellant CNG Producing Co.

Paul V. Cassisa, Sr., Bernard, Cassisa, Saporito & Elliott, Metairie, Sheryl Hopkins, Gordon, Arata, McCollam, Stuart & Duplantis, New Orleans, for defendant-appellee Sooner Pipe & Supply Corp.

Williams A. Porteous, III, Porteous, Hainkel, Johnson & Sarpy, New Orleans, for defendant-appellee The Hydril Co.

Before SCHOTT, BARRY and KLEES, JJ.

BARRY, Judge.

CNG Producing Company appeals an adverse judgment on its claim that Hydril *1216 Corporation sold defective tubing to Sooner Pipe and Supply Corporation which sold the pipe to CNG.[1]

On January 18, 1979 CNG, a company engaged in producing oil and gas, purchased from Sooner 17,760 feet of 2-7/8 inch O.D. 7.9 lb. P-105 B & W seamless tubing with Hydril PH6 threads. The tubing was manufactured by a rolling steel fabricating company and Hydril threaded the box and pin ends and phosphatized the pins. It was then sent to a coating company for inspection and internal coating. The tubing was in Sooner's inventory when CNG placed its order.

The tubing was delivered to Indian Point No. 8 well in CNG's Hell Hole Bayou Field and was strung and placed approximately 16,000 feet into the well head. It was removed without any problem and rerun into the well. A break occurred in the pin end of one of the tubes which caused the remaining pieces to fall. The full string was removed from the well and placed on a barge for inspection by Hydril and AMF Tubescope, an independent inspection company.

The cracked pieces were replaced and the string made a successful trip, despite a sixteen foot fall and abrupt stop which imposed tremendous shock loads on the pins. However, another failure occurred while the tubing was in the derrick. On February 19, 1979 CNG ordered 4,200 feet of tubing to replace the cracked pieces, but the string failed in the well and caused the line to fall in the hole. CNG had to remove the entire line resulting in temporary loss of the well. CNG abandoned all of Sooner's pipe after four similar failures within approximately two weeks.

The cracked tubing, as well as random samples, were sent to Anderson and Son, independent metallurgists, who determined the failures were caused by hydrogen embrittlement of the steel, a process by which hydrogen atoms attack the steel and work into the grains causing the steel to weaken and fail. Free hydrogen atoms need another agent to enter the metal; however, once in, the hydrogen atoms move about freely and concentrate in the areas of highest stress. High temperatures drive the free hydrogen atoms out of the material, thereby protecting it from embrittlement.

All experts agreed that the tubing failed because of hydrogen embrittlement. The issue is the source of the hydrogen. CNG maintains Hydril's phosphatizing process caused a hydrogen attack on the steel tubing resulting in its failure. Hydril denies the hydrogen embrittlement resulted from its phosphating process and claims it was caused by hydrogen sulfide in the well or by carbolic acid in the drilling mud or by the thread lubricant used by NCG.

In reasons for judgment the trial court stated:

This Court has carefully reviewed the testimony of each of the expert witnesses who appeared in this case. While the testimony of plaintiff's witness, Steven C. Anderson, an independent metallurgist, was supportive of plaintiff's position, it fell short of the level of "proof" required of plaintiff. This Court notes with concern that Counsel for plaintiff appeared to rely upon defendant, Hydril, to affirmatively prove that the phosphatizing process did not cause the embrittlement. A glaring example of this posture is plaintiff's assertion "that such evidence of wrongdoing by Babcock & Wilcox (the manufacturer of the tubing) would be in the nature of an affirmative defense....... and neither defendant has carried its burden in this regard". This Court's appreciation of our fundamental law of torts in Louisiana requires plaintiff to establish his or her case by a preponderance of the evidence.
Green v. City of Alexandria, 413 So.2d 321 (La.App. 3rd Cir.1982)
This Court finds that much of the plaintiff's evidence is based on experts' perception *1217 of what might have happened— speculation and possibility.
But such speculation and possibility does not satisfy our requirement of a preponderance of the evidence. Proof which establishes only possibility, speculation or unsupported probability does not suffice to establish a claim.
Thibodeaux v. St. Joseph Hospital 276 So.2d 703 (La.App. 1st Cir.1973)
The trial court concluded:
This Court finds as a fact that the plaintiff, CNG Producing Company, has failed to prove by a preponderance of the evidence that the defendant, Hydril, furnished defective pipe to the defendant, Sooner Pipe and Supply Corporation, which sold said pipe to the plaintiff, CNG Producing Company. Moreover, this Court finds that it is more likely than not that carbolic acid and/or hydrogen sulfide found in Well No. 2 and in Well No. 8 (sic) caused the hydrogen embrittlement.

CNG contends it was error for the court to base its decision on possible causes of the tubing failures which were not likely causes. CNG's chemist, with expertise in the field of phosphate coatings, testified that a hydrogen attack on the steel which releases hydrogen atoms possibly causing embrittlement is a necessary part of the phosphatizing process. Although CNG admits that hydrogen sulphide can cause hydrogen embrittlement, there was testimony that in twenty years of drilling at all depths in the same field no hydrogen sulfide had ever been found. CNG's chemist analyzed gas from Well No. 8 and did not find hydrogen sulfide in the well; however, his analysis was performed almost three years after the failures and his tests involved sands above those open at the time of the failures.

CNG maintains hydrogen sulfide in the well would have attacked the entire length of the production tubing, not just the pin ends. It argues that because the pin is encased in the box end of the connecting piece, the hydrogen sulfide would have to go through the box to get to the pin. No failures were found in the box ends or in the regular lengths of pipe, the parts which would have been exposed to hydrogen sulfide had it been present in the well. CNG emphasizes that only the pin ends failed since only the pin ends were subjected to the phosphatizing process.

Hydril presented evidence that hydrogen sulfide caused problems in nearby wells. It also showed that CNG mishandled the tubing which caused overtorquing and "galling out" of the pipe, there was a hydrogen attack by lignal sulfite found in the drilling mud, and carbolic acid and hydrogen sulfide were present in the well. A Hydril manager testified that when the tubing was threaded, some 25,000 joints of pipe were subjected to the phosphatizing process each month at the Harvey facility and there had never been a reported failure of pins other than CNG's claim.

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Bluebook (online)
483 So. 2d 1215, 1986 La. App. LEXIS 6089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cng-producing-co-v-sooner-pipe-and-supply-co-lactapp-1986.