Genina Marine Services, Inc. v. ARCO Oil & Gas Co.

499 So. 2d 257, 93 Oil & Gas Rep. 475, 1986 La. App. LEXIS 8282
CourtLouisiana Court of Appeal
DecidedNovember 12, 1986
Docket85 CA 0970
StatusPublished
Cited by12 cases

This text of 499 So. 2d 257 (Genina Marine Services, Inc. v. ARCO Oil & Gas 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
Genina Marine Services, Inc. v. ARCO Oil & Gas Co., 499 So. 2d 257, 93 Oil & Gas Rep. 475, 1986 La. App. LEXIS 8282 (La. Ct. App. 1986).

Opinion

499 So.2d 257 (1986)

GENINA MARINE SERVICES, INC.
v.
ARCO OIL & GAS COMPANY.

No. 85 CA 0970.

Court of Appeal of Louisiana, First Circuit.

November 12, 1986.
Rehearing Denied January 12, 1987.

*258 James McMichael, New Orleans, for defendant and appellee Arco Oil & gas co.

H.P. Rowley, III, Covington, for plaintiff and appellant Genina Marine Services, Inc.

Before SAVOIE, CRAIN and JOHN S. COVINGTON, JJ.

SAVOIE, Judge.

This is a suit seeking recognition and enforcement of a lien under the Louisiana Oil Well Lien Act, La.R.S. 9:4861 et seq. The trial court found the Well Lien Act inapplicable and granted defendant's motion for summary judgment. Plaintiff has appealed.

Plaintiff, Genina Marine, supplied the services of two vessels in connection with the drilling of offshore wells on the outer Continental Shelf during October and November of 1982. The value of these services was $10,175. Arco contracted for the services of the boats with Briley Marine, Inc., who in turn contracted for the services of Genina Marine. Arco paid Briley Marine for the services, but Briley Marine failed to pay Genina. Genina filed a notice of privilege against Arco wells on January 10, 1984. Suit was filed January 7, 1985.

Plaintiff moved for summary judgment and defendant filed a cross motion for summary judgment seeking dismissal of plaintiff's claim on the basis that the wells were located on the outer Continental Shelf and therefore, La.R.S. 9:4861 et seq., was inapplicable. The trial court denied Genina's motion for summary judgment, granted *259 Arco's motion for summary judgment and dismissed the suit. Plaintiff has now appealed.

In its Specifications of Error, Genina specifies that: "The district court erred by granting Arco's motion for summary judgment and denying Genina's motion for summary judgment." We note at the outset that a denial of a summary judgment is not a final judgment, La.C.C.P. art. 2083, and is not appealable. La.C.C.P. art. 968; Moore v. Prudential Ins. Co. of America, 302 So.2d 381, 384 (La.App. 1st Cir.1974). Accordingly, only the issues raised in the defendant's motion for summary judgment are properly before this court.

Additionally, on appeal, defendant has raised the peremptory exceptions of prescription and no cause of action. These exceptions may be raised for the first time in the appellate court pursuant to La.C.C.P. art. 2163, and will be considered herein. The factual and legal grounds for these two exceptions are identical and the two exceptions will be treated together.

We elect to treat the issues raised in the following manner: (1) Does federal law or Louisiana law apply to oil wells located on the outer Continental Shelf adjacent to Louisiana? (2) Is the Louisiana Oil Well Lien statute, La.R.S. 9:4861 et seq., applicable to oil wells located on the outer Continental Shelf? (3) Is the plaintiff's suit barred by prescription?

I. Law Applicable to Oil Wells Located On the outer Continental Shelf

Under the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C.A. 1333[1] federal law is exclusive in its regulation of the outer Continental Shelf "to the same extent as if the outer Continental Shelf were an area of exclusive Federal jurisdiction located within a state." The OCSLA provides, in pertinent part, that "[t]o the extent that they are applicable and not inconsistent with ... other Federal laws ..., the civil and criminal laws of each adjacent state.....are hereby declared to be the law of the United States for ... the outer Continental Shelf, and artificial islands and fixed structures erected thereon...." The OCSLA makes it clear that "federal law, supplemented by state law of the adjacent State, is to be applied to these artificial islands [drilling rigs]...." Rodrigue v. Aetna Casualty and Surety Co., 395 U.S. 352, 89 S.Ct. 1835, 1837, 23 L.Ed.2d 360 (1969). "All law applicable to the Outer Continental Shelf is federal law, but to fill the substantial `gaps' in the coverage of federal law, OCSLA borrows the `applicable and not inconsistent' laws of the adjacent *260 States as surrogate federal law." Gulf Offshore Co. v. Mobil Oil Corp., 453 U.S. 473, 101 S.Ct. 2870, 2876, 69 L.Ed.2d 784 (1981).

II. Is La.R.S. 9:4861 et seq., Applicable to Oil Wells Located On the Outer Continental Shelf?

It is clear from the Act that the state law is adopted as federal law on the outer Continental Shelf if: 1) it is applicable; 2) it is not inconsistent with other federal laws; and 3) the wells would be within the area of the State if its boundaries were extended seaward to the outer margin of the outer Continental Shelf. 43 U.S.C.A. 1333(a)(2)(A).

"Applicability" is to be read in terms of necessity—necessity to fill a significant void or gap. Continental Oil Co. v. London Steam-Ship Owners' Mutual Ins. Assoc., 417 F.2d 1030, 1036 (5th Cir. 1969), cert. denied, 397 U.S. 911, 90 S.Ct. 911, 25 L.Ed.2d 92. The Well Lien Act has not been shown to be inconsistent or in conflict with any federal laws or regulations. As there is no other federal lien statute available to plaintiff, it follows that Louisiana's Well Lien Act, La.R.S. 9:4861 et seq., is "applicable" and "not inconsistent with" other federal laws. Louisiana's Well Lien Act was found applicable to wells located on the outer Continental Shelf in Continental Casualty Co. v. Associated Pipe and Supply Co., 279 F.Supp. 490 (E.D.La.1967), affirmed in part, modified in part, and vacated and remanded in part, 447 F.2d 1041 (5th Cir.1971); Louisiana Materials Co., Inc. v. Atlantic Richfield Company, 486 So.2d 776 (La.App. 4th Cir. 1986), reversed on other grounds, 493 So.2d 1141 (La.Sup.Ct.,1986), and Genina Marine Services, Inc. v. Mark Producing Company, 490 So.2d 1158 (La.App. 3rd Cir.1986).

The trial court's reliance on P.H. A.C. Services, Inc. v. Seaways Internationa, Inc., 403 So.2d 1199 (La.1981) was misplaced. In P.H.A.C., supra at 1202, the court held that:

"The statute [La.R.S. 9:4861 et seq.] does not purport to affect producing wells outside the State of Louisiana."

As stated in Louisiana Materials Co., Inc., supra at 778:

P.H.A.C. is not in conflict with these federal decisions. The property in question in P.H.A.C. was located off the Texas coast, and, therefore, would not be subject to any Louisiana law. Any attachment of property in that case should have been accomplished by means of Texas Law.

It is undisputed that the wells in question are located in Ship Shoal, Blocks 91 and 332, which are located on the outer Continental Shelf but within the area of the State of Louisiana if its boundaries were extended seaward to the outer margin of the outer Continental Shelf. Therefore, we find the Louisiana Well Lien Act, La.R.S. 9:4861 et seq., applicable to the wells in question and the trial court erred in concluding otherwise.

III. Prescription

In its peremptory exception of prescription, Arco contends that Genina Marine's suit has prescribed pursuant to La.R.S. 9:4862 and 9:4865. Genina Marine argues that its suit is timely and further that prescription was interrupted against Arco by the filing of a claim in U.S. Bankruptcy Court against Briley Marine, a solidary obligor.

The facts pertinent to this determination are not in dispute.

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499 So. 2d 257, 93 Oil & Gas Rep. 475, 1986 La. App. LEXIS 8282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genina-marine-services-inc-v-arco-oil-gas-co-lactapp-1986.