Southern Natural Gas Co. v. Wilson

304 F.2d 253
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 17, 1962
DocketNo. 19158
StatusPublished
Cited by8 cases

This text of 304 F.2d 253 (Southern Natural Gas Co. v. Wilson) 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
Southern Natural Gas Co. v. Wilson, 304 F.2d 253 (5th Cir. 1962).

Opinion

RIVES, Circuit Judge.

This appeal presents another difficult question as to the liability vel non of a contractee to employees of an independent contractor, and also a question of the contractee’s right of indemnity from the independent contractor.

Southern Natural Gas Company (hereafter Southern) appeals from judgments entered against it upon a jury verdict in favor of Clyde Wilson (hereafter Clyde) in the amount of $125,000.00, and in favor of Clyde’s brother, Cammie L. Wilson (hereafter Cammie), in the amount of $3,000.00, and from a judgment dismissing with prejudice the third-party defendant, Index Drilling Company (hereafter Index).

Southern, being the owner of a mineral lease in Franklin County, Mississippi, entered into a contract with Index for the drilling of a well for oil and gas. Clyde and Cammie were employees of the independent contractor Index. Clyde was seriously burned on the derrick floor of the well; and Cammie, in coming to Clyde’s rescue, suffered minor burns.

The contract between Southern and Index for the drilling of the well provided that Index should begin drilling on August 20, 1957 and prosecute the drilling with diligence to a depth of 11,000 feet, referred to as the “contract depth.” Southern reserved the right to have the well abandoned or completed at a lesser depth. At 10,800 feet Southern ordered the regular drilling stopped in order to try to bring the well in as a producer. That was on September 23, 1957.

Up until that time (and except for a few occasions not here material) Southern paid Index at the rate of $6.00 per lineal foot drilled. From September 23 on Index was paid at day work rates. After that date Southern contracted with some 37 different companies to do special operations on the well, with Index cooperating in the services. Up until acceptable depth was reached, Southern’s representative, Mr. E. R. Jordan, was at the well site from time to time, or irregularly. Southern retained some supervision during that period, including the right to require Index from time to time to bring up bottom hole samples satisfactory to Southern and to “do such coring as the Company may specify” and to make or to “permit the Company to make, such drill stem tests, electrical surveys, radioactive surveys, analysis of mud returns and such other tests as the Company may specify” and to “do such washing, perforating, acidizing, swabbing, bailing, cleaning and similar work as the Company may specify.”

After September 23, Southern’s representative, Mr. Jordan, stayed at the well site most of the time and worked regularly 16 hours per day. Mr. Jordan gave general orders for ultimate results he wanted achieved to the tool pusher, Index’s head man on the job, or, in his absence, to the driller. The driller was the foreman over a crew of five men on a shift. After September 23, Index worked around the clock and had three shifts of crews each day. The tool pusher generally gave the orders and directions to the driller. Between September 23 and the time of the accident, Southern had repeatedly, some 27 different times, brought in other independent contractors to make various tests and to help bring the well in as a producer. The operation continued in this manner until the well was eventually abandoned on October 30.

The derrick floor where the driller operates the machinery was about 30 feet square and approximately 12 feet above the ground. There was a lower platform near the ground on which the motors were placed. Several sets of steps led to the derrick platform. The machinery and works took up about half of the derrick floor. Mud was almost constantly about the derrick floor, and was usually removed with water pressure. The floor was generally covered with oil or grease, which was occasionally removed by some form of detergent, or gasoline, kerosene, or diesel fuel.

The accident occurred between 3:00 A.M. and 4:30 A.M. on October 20, 1957. Clyde Wilson, the one badly burned, had started to work for Index on October 11, [256]*2561957; he was nineteen years of age and an inexperienced oil field worker, having worked thirteen days for one oil company and seven days for another before coming to work for Index nine days before the accident. Cammie was the older brother, 29 years of age, and had considerable oil field experience. Clyde testified that his only experience with a fire in a can of diesel oil was several nights after he started to work for Index when he tried to light such a fire by throwing matches into the can. The driller came up, told him to get a piece of rope and dip it in the can, and showed him how to light the fire. On that occasion the can was on the ground behind the dog house.

On the occasion of the accident, Clyde and Cammie Wilson had the “midnight tour,” starting at 11:00 P.M. on October 19 and were to work until 7:00 A.M. on October 20. When they arrived for this tour there was a five gallon bucket on the derrick floor containing diesel oil which had been on fire and was then smoking. Later the fire in the bucket was either re-ignited or blazed up. Who placed the bucket there or set it on fire is not known. Clyde denied emphatically that he did, or that he took any diesel oil up to the derrick floor. This was the first time that Clyde had seen an open fire on the derrick floor.

Southern's representative, Mr. Jordan, had occasion to be on the derrick floor briefly on several occasions on the night of the accident while the fire was burning in the bucket. He gave no orders with respect to the fire.

Just prior to the accident, the driller had instructed Clyde to wash off the grease on.the tools on the derrick floor with diesel oil. Both the floor and Clyde’s clothes had become soaked with oil and grease.

Cammie testified that diesel oil is a peculiarly dangerous fuel for an open fire because flames leap out as much as 8 or 10 feet, much further than from a wood fire. Clyde knew that he had oil and grease on his clothes, that the floor was greasy and oily, and that the bucket of fire was on the derrick floor. He was not familiar, however, with the special properties of diesel oil.

Shortly before the accident, the driller had told Clyde to go down and check the mud.

“Q. And what did you do after you got through checking the mud?
“A. I came back up and reported to him what I had found, and he said it wasn’t right.
“Q. Where were you standing when you were making this report?
“A. I was standing approximately three feet from the driller, and he was at his controls.
“Q. And where was the fire bucket?
“A. Directly in front of me, about two feet from where I was standing, maybe three.
“Q. Do you understand, — can you visualize this diagram as being a diagram of the floor of the rig there that night?
“A. Yes, sir.
“Q. I want you to point out for the benefit of the jury, approximately where you were standing while you were reporting to the driller,— where was the can and where were you?
“A. The can was sitting somewhere along here, and I was standing over here, (indicating) between this post here and the driller, — I was on the other side of the post.
* * * # # #
“Q.

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304 F.2d 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-natural-gas-co-v-wilson-ca5-1962.