Northern Natural Gas Company v. American Warrior, Inc.

CourtDistrict Court, D. Kansas
DecidedMarch 26, 2026
Docket6:25-cv-01120
StatusUnknown

This text of Northern Natural Gas Company v. American Warrior, Inc. (Northern Natural Gas Company v. American Warrior, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Natural Gas Company v. American Warrior, Inc., (D. Kan. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

NORTHERN NATURAL GAS COMPANY, Case No. 25-1120-DDC-ADM Plaintiff,

v.

AMERICAN WARRIOR, INC.,

Defendant.

MEMORANDUM AND ORDER

Plaintiff Northern Natural Gas Company alleges that defendant American Warrior, Inc. installed a guy-line anchor directly above its natural-gas pipeline. Plaintiff claims it cautioned defendant to notify plaintiff before digging near the pipeline. But defendant didn’t heed this warning. And although defendant didn’t damage the pipeline, plaintiff spent over $100,000 shutting down the gas flow within the pipeline and inspecting it for damage. Defendant has filed a Motion to Dismiss (Doc. 9), arguing that it didn’t owe any duty to notify plaintiff before it installed the anchor, and that Kansas law doesn’t allow parties to recover purely economic loss. This Order grants in part and denies in part defendant’s motion, as the court now explains. I. Background The court “accept[s] as true all well-pleaded factual allegations in the complaint and view[s] them in the light most favorable to [plaintiff], the non-moving party.” Purgatory Recreation I, LLC v. United States, 157 F.4th 1173, 1182 (10th Cir. 2025) (quotation cleaned up). Plaintiff is a pipeline operator. Doc. 1 at 2 (Compl. ¶ 5). Defendant is an oil and gas production company. Id. at 2–3 (Compl. ¶ 6). Plaintiff owns an easement on property in Rice County, Kansas, within which it operates a natural-gas pipeline. Id. at 4–5 (Compl. ¶¶ 18–20). Defendant owns an oil and gas lease on the property. Id. at 5 (Compl. ¶ 21). In connection with this lease, defendant operates an oil well. Id.1 Defendant knew that plaintiff operated a pipeline

near the well, and knew also where the pipeline was located. Id. at 6–7 (Compl. ¶¶ 25–28). Defendant also had notice that plaintiff would have to re-excavate any digs performed without plaintiff’s notice and that plaintiff would pass on these costs to defendant. Id. at 8–9 (Compl. ¶¶ 30–32). In February 2025, one of plaintiff’s employees discovered that defendant, while performing repairs on its oil well, had drilled a large guy-line anchor directly above its pipeline. Id. at 9, 13 (Compl. ¶¶ 33–34, 52). Defendant hadn’t called 811 or notified plaintiff before digging. See id. at 10 (Compl. ¶ 35). Plaintiff’s employee instructed defendant to leave the anchor in place. Id. If the anchor had struck plaintiff’s pipeline, then removing the anchor could

have caused catastrophic damage. Id. (Compl. ¶ 36). Plaintiff owed a regulatory duty to adopt policies and procedures governing its response to potential hazards. Id. at 4 (Compl. ¶¶ 16–17).2

1 The Complaint isn’t altogether clear about whether the well produces oil or gas. The parties’ other filings refer to the well as an oil well. E.g., Doc. 9 at 2; Doc. 12 at 1. The court thus assumes that the relevant well here produces oil. In the end, this assumption is insignificant because Kansas law relevant to this motion treats oil and gas wells identically. See Kan. Stat. Ann. § 66-1802(d) (exempting “operations related to exploration and production of crude oil or natural gas, or both” from the Kansas Underground Utilities Protections Act).

2 The mere existence of these regulatory obligations is a legal conclusion, which the court isn’t bound to accept as true. See Khalik v. United Air Lines, 671 F.3d 1188, 1190 (10th Cir. 2012). But the court agrees with the gist of this legal conclusion. Federal regulations obligate pipeline operators to “establish and follow procedures for investigating and analyzing incidents[.]” 49 C.F.R. § 192.617(a). These policies and procedures required plaintiff “to ascertain the scope and nature” of any potential hazard. Id. Consistent with these policies, plaintiff executed an emergency response to assess “potential damage and to mitigate the extreme hazard” presented by the guy-line anchor. Id. at 11 (Compl. ¶ 44). Plaintiff first turned down the pressure of the gas pipeline. Id. (Compl. ¶¶ 45,

47). It then performed a hydro excavation, which revealed that the bottom of defendant’s anchor was about 10 inches above plaintiff’s pipeline. Id. at 11–12 (Compl. ¶¶ 47–48). The following day, plaintiff performed a second inspection, which confirmed that the anchor hadn’t damaged its pipeline. Id. (Compl. ¶ 50). Plaintiff lost more than $68,000 worth of natural gas when it reduced the pressure in the pipeline. Id. at 13 (Compl. ¶ 55). And it spent some $45,000 executing its emergency response. Id. at 13–14 (Compl. ¶ 56). Based on these events, plaintiff asserts two claims against defendant: one for negligence and one for fraud by silence. Id. at 14–17. Defendant seeks to dismiss both claims. The court covers the legal standard governing defendant’s motion, next.

II. Legal Standard Under Rule 12(b)(6), a party may move the court to dismiss an action for failing “to state a claim upon which relief can be granted[.]” Fed. R. Civ. P. 12(b)(6). To survive a Rule 12(b)(6) motion to dismiss, a complaint “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 556); see also Christy Sports, LLC v. Deer Valley Resort Co., 555 F.3d 1188, 1192 (10th Cir. 2009) (“The question is whether, if the allegations are true, it is plausible and not merely possible that the plaintiff is entitled to relief under the relevant law.” (citation omitted)). When considering a Rule 12(b)(6) motion to dismiss, the court must assume that factual

allegations in the complaint are true, but it’s “‘not bound to accept as true a legal conclusion couched as a factual allegation[.]’” Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 555). And, while this pleading standard doesn’t require “‘detailed factual allegations,’” it demands more than a “pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action’” which, as the Supreme Court explained, “‘will not do.’” Id. (quoting Twombly, 550 U.S. at 555). III. Analysis3 The court starts with defendant’s attack on plaintiff’s negligence theories. It then drills down on defendant’s argument that the economic-loss doctrine bars plaintiff’s claims. Finally, the court addresses defendant’s requested dismissal of plaintiff’s fraud claim.

A. Negligence Theories Defendant seeks to dismiss plaintiff’s negligence claim because, it argues, it didn’t owe plaintiff any duty. Plaintiff advances two theories to support its negligence argument. First,

3 Though no party has briefed the issue expressly, all parties seem to agree that Kansas law governs this action. The court concurs.

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Northern Natural Gas Company v. American Warrior, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-natural-gas-company-v-american-warrior-inc-ksd-2026.