Marathon Pipe Line Co. v. Drilling Rig Rowan/Odessa

527 F. Supp. 824, 1981 U.S. Dist. LEXIS 9988
CourtDistrict Court, E.D. Louisiana
DecidedNovember 30, 1981
DocketCiv. A. 79-403
StatusPublished
Cited by21 cases

This text of 527 F. Supp. 824 (Marathon Pipe Line Co. v. Drilling Rig Rowan/Odessa) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marathon Pipe Line Co. v. Drilling Rig Rowan/Odessa, 527 F. Supp. 824, 1981 U.S. Dist. LEXIS 9988 (E.D. La. 1981).

Opinion

OPINION

ARCENEAUX, District Judge.

Plaintiff, Marathon Pipe Line Company (“Marathon”), owner of an eight-inch oil pipeline installed on the floor of the Gulf of Mexico, has brought this suit in admiralty seeking compensation for damage sustained by a portion of the pipeline on August 5, 1978. Defendants are the Drilling Rig ROWAN ODESSA (“ROWAN ODESSA”), in rem, and its owner, Rowan Companies, Inc. (“Rowan”), the Tugs EL ZORRO GRANDE (“EL ZORRO”), EL JAGUAR GRANDE (“EL JAGUAR”), LEOPARDO GRANDE (“LEOPARDO”), in rem, their owner, Twenty Grand Offshore, Inc. (“Twenty Grand”), their operator, Tidewater Marine Service, Inc. (“Tidewater”), Sun Oil Company (“Sun Oil”), Sun Gas Company (“Sun Gas”), and John E. Chance & Associates, Inc. (“Chance”).

Defendants deny liability. Defendants Sun Oil and Sun Gas have cross-claimed against all of the defendant vessels and the other defendants. Defendants Twenty Grand and Tidewater have cross-claimed against defendants Chance and Rowan. Defendant Rowan has cross-claimed against the three defendant tugs, Chance, Twenty Grand, Tidewater and Sun Oil. Defendant Chance has cross-elaimed against all defendant vessels and all other defendants.

The matter came on for trial on January 14, 1981, and considered solely the issue of liability; the issue of quantum was reserved. The parties filed post-trial briefs, and the matter was taken under submission. Having thoroughly reviewed the evidence, the memoranda filed by counsel, and the applicable law, the Court now makes the following findings of fact and conclusions of law.

FINDINGS OF FACT

1.

At all times pertinent, plaintiff Marathon, a corporation organized under the laws of the State of Delaware, was the owner of an all-welded, seamless, eight-inch diameter submerged oil pipeline. This pipeline ran in a northeast direction, between the Sun Oil “A” platform in East Cameron Block 338 and the Marathon “A” platform in East Cameron Block 321. It extended a distance of 7.34 miles and was constructed and installed on the floor of the Gulf of Mexico in accordance with all permits required by law. The water depth at the northern end of the pipeline (“Block 321”) was approximately 210 feet and at the southern end (“Block 338”) was approximately 260 feet.

2.

At all times pertinent, defendant Sun Oil was a corporation organized under the laws of the State of Delaware and, on August 4, 1978, was the operator of a lease in East Cameron Block 331. However, Sun Oil had previously obtained the necessary rights to directionally drill a well from East Cameron Block 330 into Block 331 at a proposed *827 location approximately 1500 feet to the east of the Marathon pipeline since the East Cameron Block 331 location was within a shipping fairway.

3.

On July 31, 1978, Sun Oil contracted with Rowan, a corporation organized under the laws of the State of Delaware, to furnish the ROWAN ODESSA to drill the proposed well. The contract between the parties was prepared by Rowan.

4.

Under the terms of its contract with Rowan, (entitled “Agreement”), Sun Oil agreed to: provide Rowan with a “guide-path” and access to the drillsite location, advise Rowan of any subsurface conditions or obstructions which Rowan might encounter during operations under the agreement, survey and mark locations, and provide towing service.

5.

The contract between Sun Oil and Rowan contained, among others, the following provisions:

8. (b) Operator of Drilling Unit.
Contractor shall be solely responsible for the operation of the Rig, including, without limitation, supervising moving operations, positioning on drilling locations as required by Operator, jacking up and jacking down operations, as well as such operations on board the Rig as may be necessary or desirable for the safety of ■the Rig. Operations under this Agreement will be performed on a 24-hour day basis.
9. (f) Indemnity Provisions.
(1) Contractor's [Rowan’s] Indemnification of Operator [Sun].
Contractor agrees to protect, defend, indemnify and save Operator and its joint owners harmless from and against all claims, demands and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party, arising in connection herewith in favor of Contractor’s employees, Contractor’s subcontractors or their employees, on account of bodily injury, death or damage to property ....
(2) Operator’s Indemnification of Contractor.
Operator agrees to protect, defend, indemnify and save Contractor harmless from and against all claims, demands and causes of action of every kind and character, without limit and without regard to the cause or causes thereof or the negligence of any party, arising in connection herewith in favor of Operator’s employees, Operator’s contractors or their employees, other than those identified in 9(f)(1) above, on account of bodily injury, death or damage to property...
12. Independent Contractor.
Contractor is an independent Contractor. Neither Contractor, its employees, subcontractors or their employees, are agents or employees of Operator. The entire performance, operations management and control of the Rig and other items of Contractor’s equipment shall be under the exclusive control and command of Contractor, and shall be carried out by Contractor with the primary purpose of performing all acts necessary to execute the work required by the Operator’s drilling program for each well, consistent with safety. It shall be the sole exclusive duty of Contractor to determine at all times, whether operations can be safely continued or undertaken, including, without limiting the generality of the foregoing, the duty to determine by Contractor’s own inspection that all cargo and items of equipment are loaded and stored in a proper manner and the Rig is suitable to undertake any contemplated operation under the then existing conditions.

6.

In order to determine whether any underwater obstructions existed in the area, Sun Oil relied on information received from Clark Oil Company (“Clark”), which information was compiled by Clark in December of 1976. Sun Oil provided Rowan with a map showing the as-built location of the pipeline; however, the map was lost prior *828 to trial and was never admitted into evidence. Sun Oil engaged the services of Chance to survey and mark the drilling location. In addition, prior to the arrival of the ROWAN ODESSA at the drilling location, Chance, as requested by Sun Oil, placed three (3) marking buoys along the Marathon pipeline, so as to identify its location. Finally, Sun Oil, pursuant to Schedule E(2) of its agreement with Rowan, assumed the cost of the tugs engaged by Rowan to tow the ROWAN ODESSA to location.

7.

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Bluebook (online)
527 F. Supp. 824, 1981 U.S. Dist. LEXIS 9988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marathon-pipe-line-co-v-drilling-rig-rowanodessa-laed-1981.