Texaco, Inc. v. Shaw-Trosclair Fabricators, Inc.

683 F. Supp. 560, 99 Oil & Gas Rep. 505, 1987 U.S. Dist. LEXIS 2541, 1988 WL 32013
CourtDistrict Court, E.D. Louisiana
DecidedApril 1, 1987
DocketCiv. A. No. 85-3251
StatusPublished

This text of 683 F. Supp. 560 (Texaco, Inc. v. Shaw-Trosclair Fabricators, Inc.) 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
Texaco, Inc. v. Shaw-Trosclair Fabricators, Inc., 683 F. Supp. 560, 99 Oil & Gas Rep. 505, 1987 U.S. Dist. LEXIS 2541, 1988 WL 32013 (E.D. La. 1987).

Opinion

ROBERT F. COLLINS, District Judge.

This matter is before the Court based on a Joint Stipulation of Facts and a Supplemental Joint Stipulation of Facts submitted by Terrebonne Bank and Trust Company of Houma, Louisiana (TBT) and Southern Imperial Coatings, Inc. (Southern). Consequently, there is no factual dispute between the parties. Final arguments were heard on March 25, 1987.

Facts

This litigation initially began as three separate interpleader actions filed by Texaco, Inc. (formerly Getty), Chevron U.S.A., and Cities Service Oil & Gas Company. All of these companies owed money to Shaw-Trosclair Fabricators, Inc. (Shaw-Trosclair) for various oil well type construction projects which Shaw-Trosclair had fabricated and delivered. The companies withheld payment because of the filing of numerous liens and lawsuits by subcontractors of Shaw-Trosclair. The three inter-pleader actions were then instituted and eventually consolidated. All parties to these consolidated actions have settled their claims except one lien claimant, Southern, and TBT. TBT stands in the position of Texaco as an owner of an oil well platform upon which Southern claims a lien. Southern was a paint supplier to Shaw-Trosclair. Shaw-Trosclair used the paint on oil well platforms that it built for Texaco. The sum of $35,000.00 has been deposited in the registry of the Court and is claimed by both parties.

This action involves three wells. The first well is located on a Getty lease with the United States Department of the Interi- or, particularly described in the property description found in Joint Exhibit A. On this well, hereinafter referred to as “Well A,” there remains an unpaid principal invoice balance of $2,632.65. Supplies destined for Well A were delivered to Shaw-Trosclair through August 23, 1984. On May 8, 1985, Southern recorded a lien against Well A in M.O.B. 150, folio 690, in the mortgage records of Plaquemines Parish. Southern filed suit on the lien on March 21, 1986.

A second well at issue herein is located on a Getty lease with the United States Department of the Interior, particularly described in the property description found in Joint Exhibit B. On this well, hereinafter referred to as “Well B,” there remains an unpaid principal invoice balance of $23,-080.96. Supplies destined for Well B were delivered to Shaw-Trosclair through August 31, 1984. Southern recorded a lien against Well B on May 8, 1986 in M.O.B. 150, folio 665, in the mortgage records of Plaquemines Parish and filed suit thereon on March 21, 1986.

The third well at issue herein is also located on a Getty lease with the United States Department of the Interior, particularly described in the property description found in Joint Exhibit C. On this well, hereinafter referred to as “Well C,” there remains an unpaid principal invoice balance of $2,724.60. Supplies destined for Well C were delivered to Shaw-Trosclair through September 13, 1984. On May 8, 1985, Southern recorded its lien against Well C in M.O.B. 150, folio 631, in the mortgage records of Plaquemines Parish. Southern filed suit on this lien on March 21, 1986.

The Southern liens were recorded roughly nine and one-half months after the last supply of materials for Wells A and B, and roughly nine months after the last supply for Well C. Suit was filed roughly one year and seven months after the last supply of materials for all three wells.

Southern has accordingly recorded liens and sued Getty, as owner, pursuant to the Louisiana Oil Gas and Water Wells Act, LSA-R.S. 9:4861 et seq. Texaco, the successor in interest to Getty by reason of merger, has brought the lien claims into the present consolidated interpleader proceedings. For purposes of clarity, the Court will use “Getty” to refer to either Getty or Texaco, as appropriate, with respect to ownership of the platforms or obligations under the Getty-Shaw-Trosclair contract.

TBT, as assignee, has claimed from Getty receivables due Shaw-Trosclair for the fabrication of the three platforms. TBT’s position is adverse to Southern because any [562]*562amounts due TBT as assignee will be reduced by the amount of Southern’s claim. TBT asserts that the lien claim of Southern is untimely.

The factual stipulations generally provide that in the event that Southern prevails on the legal arguments of prescription and applicability of the Oil Wells Lien Act, then Southern would be paid the principal amount of its claim out of the proceeds deposited into the registry of the Court. Conversely, if TBT prevails on the legal arguments of prescription or the applicability of the Oil Wells Lien Act, then it should get all of the proceeds on deposit with the Court.

Law

The Court must first examine whether the Louisiana Oil Wells Lien Act, La.Rev.Stat. 9:4861 et seq. (The Act) is applicable to wells and structures located on the Outer Continental Shelf beyond Louisiana territorial boundaries. To do so, the Court must refer to the history of this body of law.

In 1916, the Louisiana Legislature extended protection to those who performed work or furnished materials in the exploration, drilling or production of oil and gas by granting a lien and privilege on the wells and appurtenant property in question. The Act provides in pertinent part that:1

Any person who performs any labor or service in drilling or in connection with the drilling of any well or wells in search of oil, gas or water, or who performs any labor or service in the operation or in connection with the operation of any oil, gas or water well or wells, or performs any labor or service in the construction, operation, or repair or in connection with the construction, operation, or repair of any flow lines or gathering lines, regardless of their length, which are attached to or connected with the oil, gas or water well or wells, and any pipeline owned by the producer, operator or contract operator of the well, has a privilege on all oil or gas produced from the well or wells, and the proceeds thereof inuring to the working interest therein, and on the oil, gas or water well or wells and the lease whereon the same are located, and on all drilling rigs, standard rigs, machinery, pipelines, flow lines, gathering lines and other related equipment, including, but not limited to, monitoring, measuring, metering and control equipment, appurtenances, appliances, equipment, buildings, tanks, and other structures thereto attached or located on the lease, and rights-of-way in the case of a gathering line, flow line or other producer, operator or contract operator owned pipeline for the amount due for labor or service, in principal and interest, and for the cost of preparing and recording the privilege, as well as ten percent attorney’s fees in the event it becomes necessary to employ an attorney to enforce collection.

This statute confers lien privileges to laborers and providers of services whose work was done “in drilling or in connection with the drilling of any well,” or “in the operation of any oil, gas or water well.”

TBT argues that the case of P.H.A.C. v. Seaways International, 403 So.2d 1199 (La.1981) stands for the proposition that The Act is not applicable to producing wells outside the State of Louisiana and that it is controlling in this issue. That case involved a materialman’s lien on a living quarters unit that was constructed in St.

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Bluebook (online)
683 F. Supp. 560, 99 Oil & Gas Rep. 505, 1987 U.S. Dist. LEXIS 2541, 1988 WL 32013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texaco-inc-v-shaw-trosclair-fabricators-inc-laed-1987.