Contango Operators, Inc. v. United States

965 F. Supp. 2d 791, 2013 WL 4459065, 2013 U.S. Dist. LEXIS 116763
CourtDistrict Court, S.D. Texas
DecidedAugust 15, 2013
DocketCivil Action No. H-11-0532
StatusPublished
Cited by13 cases

This text of 965 F. Supp. 2d 791 (Contango Operators, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Contango Operators, Inc. v. United States, 965 F. Supp. 2d 791, 2013 WL 4459065, 2013 U.S. Dist. LEXIS 116763 (S.D. Tex. 2013).

Opinion

MEMORANDUM OPINION AND ORDER

SIM LAKE, District Judge.

Contango Operators, Inc. (“Contango”) owns a pipeline that runs along the floor of the Gulf of Mexico. In February of 2010 a dredge owned by Weeks Marine, Inc. (“Weeks Marine”) struck and ruptured that pipeline. Contango and Certain Underwriters Severally Subscribing to Combined Cover Note JHB-CJP-17181 filed this action against Weeks Marine and the United States of America to recover for the ensuing damages. The court exercises subject matter jurisdiction over this action pursuant to 28 U.S.C. § 1333. The following motions are pending before the court:

[797]*797• Weeks Marine, Inc.’s Motion for Reconsideration of the Court’s Opinion and Order (Rec. Doc. 34) (“Weeks Marine’s Motion for Reconsideration”) (Docket Entry No. 60);
• United States’ Motion for Summary Judgment (“United States’ Motion for Summary Judgment on Liability”) (Docket Entry No. 50);
• Motion for Summary Judgment on Behalf of Weeks Marine Regarding Liability (“Weeks Marine’s Motion for Summary Judgment on Liability”) (Docket Entry No. 61);
• Plaintiffs’ Response to the USA’s Motion for Summary Judgment on Liability and Cross-Motion for Summary Judgment on the USA’s Liability (“Con-tango’s Cross-Motion for Summary Judgment on United States’ Liability”) (Docket Entry No. 62);
• Plaintiffs’ Response to Weeks Marine’s Motion for Summary Judgment on Liability and Cross-Motion for Summary Judgment on Liability (“Contango’s Cross-Motion for Summary Judgment on Weeks Marine’s Liability”) (Docket Entry No. 83).
• Plaintiffs’ Motion for Partial Summary Judgment on Weeks Marine’s Fault — Failure to Rebut Presumption [and Proposed Order] (“Contango’s Motion for Summary Judgment on Weeks Marine’s Fault”) (Docket Entry No. 66);
• Motion for Summary Judgment on Behalf of Weeks Marine — Government Contractor Defense (“Weeks Marine’s Motion for Summary Judgment on Government Contractor Defense”) (Docket Entry No. 59);
• Plaintiffs’ Response to Weeks Marine’s Motion for Summary Judgment and Cross-Motion for Summary Judgment on the Government Contractor Defense (“Contango’s Cross-Motion for Summary Judgment on Government Contractor Defense”) (Docket Entry No. 82); and
• Plaintiffs’ Motion for Partial Summary Judgment on Defendants’ Affirmative Defense of Comparative Negligence [and Proposed Order] (“Contango’s Motion for Summary Judgment on Res Judicata”) (Docket Entry No. 65).

Having reviewed the motions, the record, and the relevant law, the court is persuaded that all pending motions,should be denied.

I. Background

A. Undisputed Facts

Under the Rivers and Harbors Act of 1899 (“RHA”), 33 U.S.C. § 403, no submarine structure may be built in the navigable waters of the United States unless authorized by the United States Army Corps of Engineers (the “Corps”). Accordingly, in September of 2007 Contango filed with the Regulatory Division of the Corps an application for a permit to construct a natural gas pipeline in the Gulf of Mexico off the coast of Louisiana.2 The application indicated that the pipeline would cross the “Atchafalaya Pass Channel.”3 As part of the application review process, an employee in the Regulatory Division cross-referenced a list of Corps-maintained channels to determine whether the “Atchafalaya Pass Channel” was a Corps-maintained channel.4 That list did [798]*798not explicitly refer to an “Atchafalaya Pass Channel”; it did include an area identified as the “Atchafalaya River, Bayous Chene, Boeuf & Black.”5 At all times relevant to this litigation the channel labeled in Con-tango’s permit application as the “Atchafalaya Pass Channel” was included within the “Atchafalaya River, Bayous Chene, Boeuf & Black.”6 The Corps granted Contango a permit to construct its pipeline in November of 2007.7 Information concerning the proposed placement of the Contango pipeline across the Atchafalaya channel was not forwarded from the Regulatory Division to the Waterways Division within the Corps.8 The Waterways Division provides the locations of submarine pipelines to the engineers who prepare dredging contracts for Corps-maintained channels.9

After completing the pipeline in April of 2008 Contango provided as-built drawings that illustrated the intersection of the pipeline and the Atchafalaya channel to the Minerals Management Service (“MMS”), the National Ocean Service (“NOS”), and the United States Coast Guard (the “Coast Guard”).10 No division within the Corps received the as-built drawings.11

In April of 2009 the Corps began to solicit bids on a contract for the dredging of the Atchafalaya channel.12 Corps engineers prepared project specifications that were provided to the bidders and would ultimately become part of the dredging contract.13 Five submarine pipelines located in or near the channel were identified in those specifications; the Contango pipeline, however, was omitted.14 Weeks Marine was awarded the contract in August of 2009.15 The Contango pipeline was not among the pipelines that were identified in [799]*799the final dredging contract.16

The National Oceanic and Atmospheric Administration (“NOAA”) is the federal agency tasked with the publication of nautical charts. Prior to November 25, 2009, the relevant NOAA charts — Electronic Navigational Chart (“ENC”) US4LA21E and Raster Navigational Chart (“RNC”) 11351 — displayed the Atchafalaya channel without the Contango pipeline.17 After receiving information from MMS about a new pipeline across the Atchafalaya channel NOAA published to its website the updated ENC US4LA21E on November 25, 2009, and the updated RNC 11351 on December 3, 2009.18 Both the updated ENC and the updated RNC (collectively, the “updated NOAA charts”) depicted the Contango pipeline.19 The Coast Guard also publishes nautical information to the public in the form of a weekly Local Notice to Mariners (“LNM”).20 On December 2, 2009, the Coast Guard published LNM 48/09, announcing the addition of a submarine pipeline to the area displayed in the RNC.21 The updated NOAA charts and LNM 48/09 were published after Weeks Marine had been awarded the contract and had commenced dredging22

Weeks Marine’s non-self-propelled dredging vessel, the G.D. MORGAN, struck the Contango pipeline on February 24, 2010.23 The pipeline was ruptured, and Contango incurred losses as a result.

B. Contango’s First Amended Complaint

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Bluebook (online)
965 F. Supp. 2d 791, 2013 WL 4459065, 2013 U.S. Dist. LEXIS 116763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contango-operators-inc-v-united-states-txsd-2013.