Enable Midstream Partners, LP v. Louisiana Energy Gateway LLC

Louisiana Court of Appeal·Decided October 2, 2024·No. 55,916-CA·Published

Opinion

Judgment rendered October 2, 2024.

Application for rehearing may be filed within the delay allowed by Art. 2166, La. C.C.P.

No. 55,916-CA

COURT OF APPEAL

SECOND CIRCUIT

STATE OF LOUISIANA

*****

ENABLE MIDSTREAM Plaintiff-Appellee PARTNERS, LP

versus

LOUISIANA ENERGY Defendant-Appellant GATEWAY LLC

*****

Appealed from the

Forty-Second Judicial District Court for the Parish of DeSoto, Louisiana Trial Court No. 84,243

Honorable Amy Burford McCartney, Judge

*****

ETHAN P. ARBUCKLE Counsel for Appellant

PHELPS DUNBAR, LLP By: H. Alston Johnson, III Brad M. Boudreaux Kevin W. Welsh Stephen R. Vick, Jr.

Anthony J. Gambino, Jr.

Jordan P. Zeringue Nena M. Eddy

BRADLEY, MURCHISON, Counsel for Appellee, KELLY & SHEA, LLC Enable Midstream By: Kay Cowden Medlin Partners, LP Leland G. Horton Joshua S. Chevallier Ashley G. Gable

LIZ MURRILL Counsel for Appellee, Louisiana Attorney General State of Louisiana

WARREN B. BATES, JR. Assistant Attorney General

GORDON, ARATA, MONTGOMERY, Counsel for Appellees, BARNETT, MCCOLLAM, DUPLANTIS American Petroleum Institute & EAGAN, LLC and Interstate Natural Gas By: Clinton P. Hayne, Jr. Association of America Scott A. O’Conner

CARVER, DARDEN, KORETZHY, Counsel for Appellee, TESSIER, FINN, BLOSSMAN & Louisiana Landowners AREAUX, LLC Association, Inc. By: Brandon T. Darden

*****

Before COX, ROBINSON, and ELLENDER, JJ.

COX, J.

This appeal arises out of DeSoto Parish, Louisiana. Louisiana Energy Gateway, LLC (“LEG”) appeals a preliminary injunction granted in favor of Enable Midstream Partners, LP (“Enable”). For the following reasons, we reverse the trial court’s judgment.

FACTS

On July 24, 2023, Enable filed a petition for a temporary restraining order, preliminary injunction, and permanent injunction to prevent LEG from interfering “with its property rights and natural gas pipeline operations[.]”

On February 26, 2010, Enable’s predecessor, CenterPoint Energy Field Services, entered into a pipeline agreement with Dorothy and James Ricks, which grants an “exclusive fifty foot (50’) wide” pipeline easement on property in Section 1, Township 12 North, Range 13 West in DeSoto Parish (“Enable Ricks Servitude”). CenterPoint’s successor in title, Enable, operates a gathering pipeline on the Enable Ricks Servitude.

On April 1, 2023, LEG obtained their own servitude over the Ricks property (“LEG Ricks Servitude”) intersecting the Enable Ricks Servitude. Enable’s affiliate, Energy Transfer, LP (“ETC”) was contacted by representatives of Williams Company on behalf of LEG requesting assessment and consent to 42 proposed pipeline crossings on May 23, 2023.1 Each pipeline crossing involved various sizes of pipe and specifications throughout DeSoto, Caddo, Beauregard, Sabine, and Vernon Parishes. Enable alleged that it was given only 14 days to evaluate the proposed 42

1 LEG is a subsidiary of Williams Company.

crossings and not given all the pertinent information. After numerous email exchanges between the companies, Enable, through an email from Mark Vedral, denied all crossings on June 30, 2023.

In its petition, Enable argued that the Enable Ricks Servitude is an exclusive servitude, and it did not agree to allow any crossing of that servitude. Enable stated that LEG intends to construct a 36-inch natural gas pipeline that would cross the Enable Ricks Servitude. The trial court granted the temporary restraining order.

Mark Vedral, the Senior Director of Land and Right of Way with ETC, stated in his affidavit that Enable/ETC received a request for assessment and consent of more than 40 pipeline crossings. The request was received on May 23, 2023, with a requested response date of June 6, 2023. He stated that complete details and documentation were not provided. Mr. Vedral stated that after receiving inaccurate and incomplete information from LEG, Enable informed LEG that it did not have permission to cross the pipeline. He stated that LEG’s contractors were also informed that LEG did not have permission to cross after receiving a Louisiana One Call notice. Mr. Vedral is of the opinion that the Enable Ricks Servitude is exclusive. He alleged “imminent safety and operational risk” and “immediate and irreparable loss.”

LEG filed its answer, affirmative defenses, and reconventional demand on September 6, 2023. LEG stated that the documents and written communications are the best evidence of their content. LEG alleged that Enable never identified the missing information and denied that it needed Enable’s consent to cross the pipeline. LEG asserted the following affirmative defenses: Enable’s petition fails to state a claim upon which

relief can be granted; LEG has complied with all laws to exercise its rights on the property; Enable’s rights have not been and will not be adversely affected; LEG has accommodated all of Enable’s rights; LEG pleads waiver, release, estoppel, unclean hands, laches, and extinguishment of obligation; LEG asserts all rights under any applicable servitude agreement; Enable does not have a right to a TRO, preliminary, or permanent injunction; and Enable’s servitude is an absolute nullity and against public policy.

LEG alleged that Enable has the right to construct one pipeline at a maximum depth of six feet (four feet of cover plus two feet of pipeline diameter), and it has already been installed. LEG stated that it would maintain at least three feet of clearance under Enable’s servitude, a depth where Enable has no rights. LEG stated that Mr. Vedral objected to all crossings without explanation. LEG requested a preliminary injunction against Enable’s action to block LEG’s pipeline, damages, attorney fees, court costs, legal interest, and all other relief which may be equitable under the circumstances.

A hearing on the preliminary injunction was held on September 20, 2023. Steven Futch testified that he is the vice president of interstate engineering for ETC; Enable is a pipeline company owned by ETC; and he is responsible for all project development and project execution for all company pipelines. He stated that he has never received 42 proposed pipeline crossings at once. When reviewing the request, Mr. Futch believed that 42 crossings meant LEG would switch back and forth over the Enable Pipeline and end up back on the same side. He stated the two-week turnaround was not a normal request. Mr. Futch detailed ways in which a pipeline crossing could pose obstacles in the future: the pipeline never leaves

because a hole or dirt settling would remain; maintenance is more difficult; the inability to move the pipeline if there is a change in the surface usage; and repeated need to coordinate between the pipeline companies. Mr. Futch clarified that the Enable Ricks Servitude does not have a maximum depth limitation, only a minimum depth of three or four feet depending on the surface use.

On cross-examination, Mr. Futch disagreed with opposing counsel regarding whether the LEG pipeline is a gathering pipeline and the applicable federal laws. Counsel for LEG asked Mr. Futch to clarify that the 42 crossings were planned to cross not only pipelines owned by Enable but also different pipelines. Mr. Futch stated that the crossings were of “all of our assets,” which includes companies within the ETC/Enable family of companies. Mr. Futch agreed that safe pipeline crossings happen “all the time.” On both direct and cross, Mr. Futch mentioned that the ETC/Enable family of companies is the largest pipeline owner/operator in the country with 120,000 miles of pipe.

Free access — add to your briefcase to read the full text and ask questions with AI

Enable Midstream Partners, LP v. Louisiana Energy Gateway LLC, (La. Ct. App. 2024).

Enable Midstream Partners, LP v. Louisiana Energy Gateway LLC (Enable Midstream Partners, LP v. Louisiana Energy Gateway LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Louisiana Granite Yard, Inc. v. La Granite Countertops, L.L.C.
47 So. 3d 573 (Louisiana Court of Appeal, 2010)
Powertrain of Shreveport, L.L.C. v. Stephenson
149 So. 3d 1274 (Louisiana Court of Appeal, 2014)
Whitlock v. Fifth Louisiana District Levee Board
164 So. 3d 310 (Louisiana Court of Appeal, 2015)
Louisiana Granite Yard, Inc. v. LA Granite Countertops, L.L.C.
51 So. 3d 733 (Supreme Court of Louisiana, 2010)