Gulf-Coast Pre-Mix Trucking v. LOUISIANA PUB. SERV.

336 So. 2d 849
CourtSupreme Court of Louisiana
DecidedJune 21, 1976
Docket57500
StatusPublished
Cited by10 cases

This text of 336 So. 2d 849 (Gulf-Coast Pre-Mix Trucking v. LOUISIANA PUB. SERV.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf-Coast Pre-Mix Trucking v. LOUISIANA PUB. SERV., 336 So. 2d 849 (La. 1976).

Opinion

336 So.2d 849 (1976)

GULF COAST PRE-MIX TRUCKING, INC., et al.
v.
LOUISIANA PUBLIC SERVICE COMMISSION.

No. 57500.

Supreme Court of Louisiana.

June 21, 1976.
Rehearing Denied September 10, 1976.

*850 Harold R. Ainsworth, New Orleans, for plaintiffs-appellants.

Marshall B. Brinkley, Gen. Counsel, Thomas K. Kirkpatrick, Dozier, Keyser & Kirkpatrick, Baton Rouge, for defendant-appellee.

SUMMERS, Justice.

Rome Truck Lines, Inc., applied to the Public Service Commission for a certificate of public convenience and necessity and for authorization to operate a common carrier motor freight service transporting "all liquids pertaining to the drilling, bringing in, cleaning out and working over of oil wells and gas wells, including salt water and fresh water, in tank trucks, but excepting acids and fuel for combustion purposes" over "irregular routes from, to and between all points within the State of Louisiana."

Vacuum Truck Carriers of Louisiana, Inc., and its member carriers, Younger Brothers, Inc., and Groendyke Transport, Inc., filed protests. The matter was heard before the Commission on March 18, 1975, and on June 16, 1975, the Commissioner issued its order granting the certificate applied for, except that the territory was limited to that part of the State south of a line drawn east and west through the city of Alexandria. One of the three commissioners dissented.

When a rehearing was denied by the Commission by a two-to-one vote, Gulf Coast Pre-Mix Trucking, Inc., Prudhomme Truck Tank Service, Inc., Garret Oil Field Service, Inc., Vacuum Tank Service of Vidalia, Inc., B & M Trucking, Inc., and Vacuum Truck Carriers of Louisiana, Inc., all Louisiana corporations, filed suit in the Nineteenth Judicial District Court to set aside and nullify the Commission's order, alleging that the order of the Commission was erroneous for the following reasons:

1. Applicant failed to prove that the public convenience and necessity would be materially promoted as required by Section 164 of Title 45 of the Revised Statutes.
2. Applicant only attempted to show a need from Houma, yet a vast territory was awarded.
3. Applicant's witnesses proved that the present service from Houma is adequate and no additional service is needed even from this point of origin.
4. Applicant only attempted to show a need to transport one commodity, yet all of the commodities requested by applicant were authorized.
*851 5. The order is contrary to the law and the evidence at the hearing.
6. The evidence at the hearing established that there is ample and adequate service available and no additional service is required.

A general denial was filed by the Commission, and Rome Truck Lines, Inc., intervened in the suit in support of the Commission's order. By agreement the matter was submitted on the pleadings and the record formed at the hearing before the Commission.

While expressing "some reservations as to the necessity of another motor carrier to transport these commodities" the trial judge affirmed the Commission order; whereupon plaintiffs appealed to this Court.

Applicant, Rome Truck Lines, Inc., presented three witnesses in support of its application. Daniel J. Rome, Sr., testified that he was an oil field consultant on the drilling, completion and production of oil wells. He said that the company was recently formed by him and that he had filed proper evidence with the Commission to demonstrate the requisite financial responsibility. If the application were granted, he would run the company, and he intended to purchase 16 trucks, 14 vacuum tanks and 2 others, for use in the business.

On cross-examination he asserted that he felt there was a need for the business, because in his occupation as a consultant there were times when it was necessary to wait "quite a bit" on trucks. Nevertheless, he was not prepared to give details or present records of these delays, and he relied upon his other witnesses to supply the data. He conceded also that he had never tried to use existing carriers for transportation of petroleum products and had no authority, as a consultant, to designate the bulk petroleum carrier.

Wayne Bollinger, assistant operations manager of Delta Mud and Chemical Company of Houma, is involved in the daily operations of his company trucking drilling mud, calcium chloride and salt water. In this capacity he engages the trucks for deliveries. When Prudhomme and Gulf Coast Pre-Mix do not have trucks available, he said, they inform the company ordering the drilling mud that there will be a delay in the delivery, because to call an out of town truck merely would entail further delay without significantly alleviating the situation at the well. He kept a log of delays due to unavailability of trucks. There were about five or six instances entered in the log of delays during a five-month period involving approximately 400 shipments. Except for one, the delays involved less than six hours. The log was not represented to be entirely accurate, the intimation being that there were other delays.

Time is particularly important when certain types of muds are required at the drilling site, for these certain types are used to dislodge drill pipe. Stuck drill pipe is a threat to the well and can result in a fishing operation or a blowout and heavy expense. Otherwise, delays in delivery of other type muds used in routine drilling operations pose no unusual threat to the well. Less heavy expense in the drilling operation is sometimes involved in these latter instances, however, for the crew and equipment are mostly idle during the delay.

Max Patterson appeared at the hearing in support of the application to represent Louisiana Mud Company, which also handles liquid mud products. He was of the opinion that the addition of Rome Truck Lines, Inc., to the available truck lines at Houma would make delivery of his product easier and would help the customers "at times". He kept no logs of delays due to truck shortages but indicated delays did occur. He had no recollection, however, of specific instances.

Larry Brown who appeared on behalf of Groendyke testified in direct presentation that Groendyke was protesting this application because if the application as originally *852 submitted was granted certain wording would possibly authorize the transportation of petroleum products, one of the principal commodities transported by Groendyke. It would also authorize the transportation of salt water and fresh water, which Groendyke is presently authorized to transport anywhere in the State in bulk. The wording to which Brown pointed to support his apprehension is: "The transportation of all liquids pertaining to the drilling, bringing in and cleaning and working over of oil wells and gas wells." Rome supported this fear of Groendyke's by testifying that he did in fact intend to transport petroleum products in two of the tank trucks which he intends to purchase.

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