Offshore Oil Svc v. Island Operating

CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 4, 2025
Docket24-30674
StatusPublished

This text of Offshore Oil Svc v. Island Operating (Offshore Oil Svc v. Island Operating) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Offshore Oil Svc v. Island Operating, (5th Cir. 2025).

Opinion

Case: 24-30674 Document: 73-1 Page: 1 Date Filed: 09/04/2025

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit ____________ FILED September 4, 2025 No. 24-30674 Lyle W. Cayce ____________ Clerk

In the Matter of the Complaint of Offshore Oil Services, Incorporated, as owner of the M/V Anna M, for Exoneration from of Limitation of Liability

Offshore Oil Services, Incorporated, as owner of the M/V Anna M,

Petitioner—Third Party Plaintiff—Appellant,

versus

Island Operating Company, Incorporated,

Third Party Defendant—Appellee,

Tyron Felix, Louisiana Workers Compensation Corporation,

Claimants—Appellees. ______________________________

Appeal from the United States District Court for the Eastern District of Louisiana USDC No. 2:21-CV-1522 ______________________________ Case: 24-30674 Document: 73-1 Page: 2 Date Filed: 09/04/2025

Before Jones and Graves, Circuit Judges, and Rodriguez, District Judge. † Fernando Rodriguez, Jr., District Judge: This dispute concerns whether a contract governing the provision of services at an offshore oil and gas production platform is one in maritime. If not, Louisiana law controls, nullifying an indemnity provision within the contract, which the appellant seeks to enforce. We conclude that the contract is not maritime in nature. As a result, we AFFIRM summary judgment in favor of the appellee. I. Fieldwood Energy LLC is an oil and gas exploration and production company that owns and operates production platforms in the Gulf of Mexico. In 2014, Fieldwood and Island Operating Company, Inc. (“IOC”) entered into a Master Services Contract, through which the latter provided workers to perform oil and gas production services on Fieldwood’s platforms. The MSC defined “The Work” under the contract as those goods and services that Fieldwood requested, such as through work orders, and that were described in an Appendix. The referenced and incorporated Appendix listed many categories of possible works and services, most of which concerned traditional oil and gas production services, such as casing, explosives, well control, and pressure pumping. The form also contained the categories “Marine Aids to Navigation” and “Marine Vessels (Operation/Service/Repair).” In connection with the MSC, Fieldwood and IOC checked only the line for “Other (Please list),” and handwrote, “Lease

_____________________ † United States District Judge for the Southern District of Texas, sitting by designation. Case: 24-30674 Document: 73-1 Page: 3 Date Filed: 09/04/2025

No. 24-30674

Operators.” The boxes for the remaining categories of goods and services remained unchecked. The MSC contemplated Fieldwood contracting with third parties to provide marine transportation for equipment and IOC workers to the offshore platforms: Whenever Work to be performed under this Contract involves worksites located offshore or within inland waters, [Fieldwood], unless otherwise agreed to in writing, shall have the obligation to provide marine transportation for equipment and workers in association with such Work, and may enter into agreements with third parties for the provision of the marine transportation services. [Fieldwood] and [IOC] specifically agree that such transportation, whether provided by [Fieldwood] or [IOC], is a maritime activity and shall be subject to General Maritime Law of the United States of America at all times while any member of [IOC] Group (as defined herein) is being transported to or from the worksite, including, without limitation, while such member is embarking or disembarking or while such equipment is being loaded or offloaded from any vessel(s). MSC (emphasis added). Based on this provision, Fieldwood contracted with Offshore Oil Services, Incorporated (“OOSI”) to transport IOC employees to the platforms. 1

The MSC also established indemnity obligations. In particular, IOC agreed to indemnify Fieldwood’s “third party contractors,” such as OOSI, from and against claims resulting from injuries to IOC employees: [IOC] hereby agrees to release, indemnify, protect, defend and _____________________ 1 The precise contractual arrangements for the transportation were more complex and involved other parties. Those details, however, do not affect the analysis of the issues in this appeal.

3 Case: 24-30674 Document: 73-1 Page: 4 Date Filed: 09/04/2025

hold harmless such other third party contractor(s) [e.g., OOSI] (and any such third party contractor group) from and against any and all claims for (1) the injury, illness or death of any member of [IOC][.] MSC (capitalization removed).

On December 16, 2020, Fieldwood and IOC entered into a Work Order via an email chain, through which Fieldwood asked IOC to provide additional workers to fill A Operator positions. 2 Stacy Fontenot, a Fieldwood corporate representative, described the roles and responsibilities of A Operators: “They do what’s called the monthly BESE testing, compliance testing . . . well testing, take shakeouts, check chemical rates, start up compressors, load compressors, [and] bring wells online.” A critical issue in this lawsuit concerns whether vessels would play a substantial role in the performance of the MSC, and whether the parties expected as much. On these points, Fontenot was asked in a deposition whether under the MSC, A Operators could use equipment connected to a vessel. She responded that “[w]e typically don’t do that, but it . . . has been done, yes, sir. I’d say it’s part of the agreement.” IOC’s President and Chief Executive Officer, Greg Falgout, also commented on the issue, declaring that IOC production operators “performed no work upon . . . vessels.” According to him, Fieldwood and IOC expected the use of vessels under the MSC solely as “a means of transportation to relocate production workers as necessary among the field platforms and/or to transport them back to shore.” He stated that neither Fieldwood nor IOC “had any expectation of vessels being used as work platforms by IOC personnel for any work performed or _____________________ 2 The parties agree that the Work Order represents part of the contractual instrument in this matter. For ease of reference, the Court’s use of “the MSC” includes the Work Order.

4 Case: 24-30674 Document: 73-1 Page: 5 Date Filed: 09/04/2025

contemplated[.]” Starting in December and in response to the Work Order, Fieldwood called upon OOSI to convey IOC workers to the platform. OOSI utilized the M/V Anna M for the services, and one of the transported workers was Tyrone Felix. He worked two 14-day hitches, first from December 31, 2020 through January 14, 2021, and then from January 28 through February 11. During his 28 days of work, Felix performed production rounds checking equipment on the platforms, and conducting platform start-ups and Bureau of Safety and Environmental Enforcement inspections. On 10 of those days, he also moved potable water from the vessel to the platform, or offloaded and backloaded equipment to and from the vessel and the platform. Near the beginning of his second hitch, on January 30, 2021, Felix sustained injuries while disembarking the M/V Anna M via a personnel basket transfer to the platform. Two weeks later, he sent OOSI a written claim letter related to his injuries. In response to the demand letter, OOSI filed a Complaint for Exoneration from and/or Limitation of Liability pursuant to Federal Rule of Civil Procedure 9(h) and Supplemental Rule for Admiralty or Maritime Claims F. Within this limitation action, Felix filed a personal injury claim against OOSI. In May 2022, OOSI initiated a Third-Party Demand against IOC, based on the indemnity provision within the MSC between IOC and Fieldwood.

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Bluebook (online)
Offshore Oil Svc v. Island Operating, Counsel Stack Legal Research, https://law.counselstack.com/opinion/offshore-oil-svc-v-island-operating-ca5-2025.