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

Louisiana Court of Appeal·Decided October 1, 2025·No. 56,493-CA·Published

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

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

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. He testified that Gateway would perform the crossings in the presence of an ETC representative and to its specifications, as much as possible. He reviewed the crossings at issue in this matter and testified that there is nothing unusual or dangerous in any of the potential crossings.

William Southerland testified that he is Williams’ manager of pipeline construction and in charge of the 42-inch pipeline construction in Sabine and DeSoto parishes. He testified he visited all of the proposed crossing sites

and found nothing unusual or difficult about those crossings. He also reviewed with the court all of the proposed crossings.

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

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

ETC Texas Pipeline, LTD v. Louisiana Energy Gateway, LLC (ETC Texas Pipeline, LTD v. Louisiana Energy Gateway, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

White v. White
25 So. 3d 885 (Louisiana Court of Appeal, 2009)
Dauphine v. Carencro High School
843 So. 2d 1096 (Supreme Court of Louisiana, 2003)
Mary Moe, LLC v. Louisiana Bd. of Ethics
875 So. 2d 22 (Supreme Court of Louisiana, 2004)
Shaw v. Hingle
648 So. 2d 903 (Supreme Court of Louisiana, 1995)
Brannan v. Talbot
691 So. 2d 848 (Louisiana Court of Appeal, 1997)
Lee Rand v. City of New Orleans
235 So. 3d 1077 (Supreme Court of Louisiana, 2017)
Faulk v. Union Pacific Railroad
172 So. 3d 1034 (Supreme Court of Louisiana, 2015)
Trascher v. Territo
89 So. 3d 357 (Supreme Court of Louisiana, 2012)