Shields v. Halliburton Co.

493 F. Supp. 1376, 207 U.S.P.Q. (BNA) 304, 1980 U.S. Dist. LEXIS 14567
CourtDistrict Court, W.D. Louisiana
DecidedJune 26, 1980
DocketCiv. A. 78-0065
StatusPublished
Cited by26 cases

This text of 493 F. Supp. 1376 (Shields v. Halliburton Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shields v. Halliburton Co., 493 F. Supp. 1376, 207 U.S.P.Q. (BNA) 304, 1980 U.S. Dist. LEXIS 14567 (W.D. La. 1980).

Opinion

OPINION

SHAW, District Judge.

A Patent Case

Plaintiffs are C. Nelson Shields, Jr., Trustee and assignee of the two patents in issue, and Advance Engineering, Inc., exclusive licensee and an indirect subsidiary of Baker International Corporation. The defendants are Halliburton Company, Halliburton Services, Brown and Root, Inc. and Brown and Root Marine Operators.

The plaintiffs claim that defendants have infringed claims 1-15 of their U. S. Bassett & Olsen Patent 28,232 1 and seek to have this patent held valid, enforceable and infringed. Defendants deny these claims and *1379 additionally, ask the Court to declare a second patent of plaintiffs, U. S. Patent No. 3,832,857 (on which a previous charge of infringement has been withdrawn) to be invalid and unenforceable.

The present proceeding is limited to the issue of liability of the defendants for patent infringement with the actual accounting for damages being severed.

I

Background of the Patent 2

The determination of this case is of paramount importance because if the patent is valid, the plaintiffs, for all practical purposes, would enjoy a time-limited monopoly in grouting offshore structures for oilwell drilling and production operations.

Since the 1950’s, many of these structures or platforms have been placed offshore and they stand on the sea bed on tubular jacket legs (usually 4 to 8 legs per platform) and include piles which are driven through the interior of the legs, along their length, and into the sea bed to aid in the stability of the structure.

When an offshore platform is set, the jacket legs are generally open at the bottom to the sea, and the annulus between the pile and jacket legs will fill with water up to the water line of the surrounding ocean. A water filled annulus is thus created along the inside length of each of the jacket legs between the pile and the jacket leg.

Conventional Grouting vs. Air Pressure Grouting

A common practice since the late 1950’s, has been to place grout or cement in the annulus formed to help increase the stability of the overall structure by bonding the pile to the jacket leg.. At that time, the conventional grouting procedures for new platforms under construction was to install two grout lines on each leg near the lower end of the leg up to just above the water line. One line would be located below the other and an initial plug of grout would be placed in the bottom of the leg using this line in an attempt to seal the bottom of the leg to prevent loss of the main column of grout to be subsequently added. After the initial plug was set, and if it had been successfully placed, the second stage of grouting could proceed with filling of the annulus above the plug by the second grout line. The grout would displace the sea water in the leg up the annulus and out the top and if grout of good consistency would eventually flow out of the top of the leg, the operation was a success. 3

In the case of ungrouted platforms, originally set without grout lines, there was little success. Attempts were made by forcing grout in the top of the leg through sea water in the leg by placing a small grout pipe down the annulus. Another method was to use deep-sea divers to install clamps and valves onto the legs below the water line near the bottom of the legs to permit grout lines to be hooked for grouting operations from the bottom of the leg as described above. 4

Conventional grouting presented a number of problems. Many times, the first stage plug would fail to hold and consequently, second stage grout would be lost out of the bottom of the leg. Once this occurred, the original grout lines could not be reused as they would be filled with hardened grout. Although conventional grouting is still used today, it is not the desired method from a point of time, economy or results. 5

In the latter part of 1968, or the first two months of 1969, Max Bassett, through a company he had formed, called Guardian Engineering, attempted, unsuccessfully, to perform a conventional grouting job for McDermott. 6 He noticed a small air compressor on the barge that divers had been using. Being completely out of ideas and having nothing to lose at this point, he *1380 attempted to dewater the annulus with air pressure applied at the top prior to grouting and was successful. He used air pressure to prevent water from returning to the leg while introducing grout from the top of the leg. 7 The evidence is not clear as to whether or not this operation was a complete success, but there is no doubt it was the first time that this procedure had ever been applied. A few days later, Bassett disclosed this air pressure grouting procedure to H. W. Olsen (now deceased) who had some additional ideas to be used. The first item was the use of a vibrator device to be attached to the upper end of the jacket leg to help the expulsion of water by air pressure in a firm sea bottom. In case a soft sea bottom is not encountered, it may be necessary to break the bond at the bottom of the leg between the leg and the sea bottom to permit water to be driven out. The second item that Olsen contributed provided that if a short plug (less than one-half the annulus) is used in the first stage of grouting, the grout can be constrained or loaded by the air pressure until it is fully set. By not releasing all the air during grouting, this short plug is formed and air pressure is held on the plug until it sets. 8

Mr. Olsen, who later assigned all of his rights in the patents to Bassett, and Bassett, submitted their joint ideas to a patent attorney, which resulted in the issuance of United States Patent No. 3,601,999 on August 31, 1971. In the meantime, Bassett disclosed the air pressure grouting concept to Mr. Cliff Tannahill of Union Oil Company in February, of 1969, and Bassett’s company, Guardian Engineering, was awarded a job which was successfully completed in June, of 1969. In connection with the Union job, Bassett made an arrangement with a James Ratteree to supervise the field operations and explained the entire procedure to Ratteree. 9 Bassett and Ratteree did several jobs together and terminated their relationship. The defendants claim that during this relationship, Ratteree conceived the idea independently of Bassett and Olsen, of a reducing air pressure feature, which operates in the following manner: As the grout is introduced, the air pressure is monitored and controlled to prevent ingress of water that might dilute the grout.

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Bluebook (online)
493 F. Supp. 1376, 207 U.S.P.Q. (BNA) 304, 1980 U.S. Dist. LEXIS 14567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shields-v-halliburton-co-lawd-1980.