ETC Texas Pipeline, LTD v. Louisiana Energy Gateway, LLC

CourtLouisiana Court of Appeal
DecidedOctober 1, 2025
Docket56,493-CA
StatusPublished

This text of ETC Texas Pipeline, LTD v. Louisiana Energy Gateway, LLC (ETC Texas Pipeline, LTD v. Louisiana Energy Gateway, LLC) 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
ETC Texas Pipeline, LTD v. Louisiana Energy Gateway, LLC, (La. Ct. App. 2025).

Opinion

Judgment rendered October 1, 2025. Application for rehearing may be filed within the delay allowed by Art. 2166, La. C.C.P.

No. 56,493-CA

COURT OF APPEAL SECOND CIRCUIT STATE OF LOUISIANA

*****

ETC TEXAS PIPELINE, LTD Plaintiff-Appellant

versus

LOUISIANA ENERGY Defendant-Appellee GATEWAY, LLC

Appealed from the Forty-Second Judicial District Court for the Parish of DeSoto, Louisiana Trial Court No. 84,329

Honorable Nicholas E. Gasper, Judge

BRADLEY MURCHISON Counsel for Appellants, KELLY & SHEA LLC ETC Texas Pipeline, By: Kay Cowden Medlin LTD, ET Gathering & Leland G. Horton Processing, LLC and Joshua S. Chevallier Gulf Run Transmission, LLC

PHELPS DUNBAR, LLP Counsel for Appellees By: H. Alston Johnson, III Brad M. Boudreaux Kevin W. Welsh Anthony J. Gambino, Jr. Nena M. Eddy

ETHAN ARBUCKLE

Before STONE, THOMPSON, and MARCOTTE, JJ. THOMPSON, J.

Competitors in the energy sector have returned to court to litigate the

extent of rights emanating from predial servitudes and rights of use and any

restrictions which may exist regarding pipeline crossings of 12 different

servitudes. ETC Texas Pipeline, Ltd. (“ETC”) is the owner of a dominant

servitude in which it operates an underground pipeline. Louisiana Energy

Gateway, LLC (“Gateway”) is the owner of servient servitude and sought to

construct and operate its own underground pipeline beneath the ETC

pipeline, which would necessarily encroach within the surface footprint of

the ETC servitude at points the two pipelines crossed. ETC argues the

Gateway pipeline would encroach in the vertical space of ETC’s dominant

servitude, and that ETC’s permission is required. After a trial on the merits,

the trial court held ETC could not prevent Gateway from constructing and

operating an underground pipeline beneath ETC’s pipeline, relying on recent

jurisprudence from this Court. However, as part of its ruling the trial court

also granted Gateway a mandatory injunction, preventing ETC from “taking

any action that impedes, interferes with, or obstructs the construction,

operation, or maintenance” of the servient estate’s pipeline. ETC argues in

part that the permanent injunction severely hampers and interferes with its

ability to maintain its pipeline. We find granting the continuing mandatory

injunction to be manifestly erroneous and reverse the trial court’s grant of

that injunction. However, in all other respects, the trial court’s judgment is

affirmed. FACTS AND PROCEDURAL HISTORY

This matter is one of many that have been filed between the two

parties both at the trial court and here. Williams Companies (“Williams”) is

a natural gas producer that is seeking to transport gas from Caddo Parish to

Beauregard Parish using a pipeline constructed by its subsidiary, Louisiana

Energy Gateway, LLC (“Gateway”). ETC Texas Pipeline, Ltd. (“ETC”) is

one of the largest pipeline companies in the country and owns numerous

pipelines traversing the state of Louisiana. Gateway sought to construct

and operate a pipeline which would cross below the existing ETC pipeline in

same vertical space, which ETC had previously constructed and was

operating after acquiring its servitude from the property owner.

On August 24, 2023, ETC filed a petition for declaratory judgment

seeking a judgment from the trial court stating that Gateway cannot cross the

ETC pipelines without ETC’s written consent. In response, Gateway sought

an injunction to prevent ETC from interfering with the construction of the

Gateway pipeline. A trial was held from April 23, 2024 through April 25,

2024, during which several witnesses testified from both parties and many

exhibits, including all servitudes at issue, were presented to the court.

Eric Malstrom testified on behalf of Williams that he is a licensed

professional engineer who is the project director for the Louisiana Energy

Gateway Project. He testified that there would be hundreds of crossings

with ETC pipelines throughout Louisiana and that Gateway spent $90

million to acquire the servitudes for the project. He stated that the Army

Corps of Engineers had approved the permits for the project and the federal

Pipeline and Hazardous Materials Safety Administration has registered the

2 project. Gateway provided notice to the Louisiana Department of Energy

and Natural Resources. He testified that Gateway prepared crossing

drawings to discuss crossings with all other pipeline owners, but ETC would

not communicate with it about potential crossings. Gateway places its

pipelines with the intention of running them long term and would not install

unnecessary pipeline crossings. Malstrom testified that he believed ETC did

not have legitimate concern for safety or operations but, rather, was

attempting to delay or impact a competing project in the area of their

existing pipeline. He admitted that Gateway did not initially reach out to

ETC to cross the pipelines, explaining that normally, other pipeline

companies do not object to crossings.

Wendy Whitfill-Embry (“Embry”) testified that she is a land manager

for Williams and explained that it sends a crossing notice to notify other

companies that it will be crossing their pipelines. She testified that when

notice went to ETC and it filed a reconventional demand, Gateway provided

additional information on the crossings to ETC. She identified all of the

servitudes that Gateway acquired that would require crossing ETC pipelines.

She testified that she examined the ETC servitudes and none granted rights

to the center of the Earth. She admitted that Gateway did not send all of its

information on the crossings to ETC, as some of that information is

proprietary. Embry examined the servitudes acquired by Gateway and

agreed that they include limitations on excavation near their pipelines,

including requiring prior written consent of Gateway.

Stephen Kellogg testified that he is the staff project manager at

Gateway and that he obtained permits for the Gateway pipelines. He

3 testified that Gateway is significantly behind on their timeline because of the

conflict with ETC. Kollin Hurt testified that he is a senior project manager

at Gateway and that he is responsible for the 30-inch and 36-inch pipeline

components of the Gateway project. He testified the company acquired all

permits from the Army Corps of Engineers for the pipeline. He testified that

to have the contractor and the equipment on site to build a crossing and then

be delayed would cost the company millions of dollars.

Lee West testified that he is the manager of construction at Williams

and that pipeline crossings are extremely common industry practice. He

testified that he had overseen 150 pipeline crossings and never had this

problem. All of the crossings were done safely. He noted that ETC objected

to every crossing Gateway had in this matter. The delays for litigation are

costly and time consuming. He visited each of the crossing locations and

there is nothing at any of the locations that would prevent a safe crossing.

He testified that potholing, which is a process in which dirt is removed from

around the pipeline to determine the exact location and depth of the pipeline,

is the safest way to determine the placement of a crossing pipeline and is the

industry standard.

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ETC Texas Pipeline, LTD v. Louisiana Energy Gateway, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/etc-texas-pipeline-ltd-v-louisiana-energy-gateway-llc-lactapp-2025.