Total E&P USA, Inc. v. Marubeni Oil & Gas (Usa), Inc.

389 F. Supp. 3d 478
CourtDistrict Court, S.D. Texas
DecidedJuly 12, 2018
DocketCIVIL ACTION NO. H-16-2671
StatusPublished

This text of 389 F. Supp. 3d 478 (Total E&P USA, Inc. v. Marubeni Oil & Gas (Usa), Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Total E&P USA, Inc. v. Marubeni Oil & Gas (Usa), Inc., 389 F. Supp. 3d 478 (S.D. Tex. 2018).

Opinion

NANCY F. ATLAS, SENIOR UNITED STATES DISTRICT JUDGE

By Order [Doc. # 71] entered November 1, 2017, motions and other pretrial matters in this case were referred to United States Magistrate Judge Dena Palermo pursuant to 28 U.S.C. § 636(b)(1)(A) and (B). On June 4, 2018, Magistrate Judge Palermo *480issued a Report and Recommendation [Doc. # 159], recommending that this Court grant the Motion for Partial Summary Judgment on Choice of Law [Doc. # 93] filed by Defendant Marubeni Oil & Gas (USA), Inc. ("MOGUS"), and deny the Motion to Apply Louisiana Law Under OCSLA [Doc. # 99] filed by Plaintiff Total E & P USA, Inc. ("Total").1

Total filed timely Objections [Doc. # 161] to the Magistrate Judge's Report and Recommendation, to which MOGUS filed a Response [Doc. # 164], and Total filed a Reply [Doc. # 167]. The Court has reviewed the Report and Recommendation and the parties' briefing in connection with Total's Objections. The Court has also reviewed the applicable legal authorities, particularly the Fifth Circuit's binding decision in Snyder Oil Corp. v. Samedan Oil Corp. , 208 F.3d 521 (5th Cir. 2000), and the Honorable Gray Miller's well-reasoned opinion in Danos & Curole Marine Contractors, Inc. v. BP Am. Prod. Co. , 61 F. Supp. 3d 679 (S.D. Tex. 2014). The Court's review of the Report and Recommendation is de novo . See FED. R. CIV. P. 72(b) ; 28 U.S.C. § 636(b)(1) ; Funeral Consumers Alliance, Inc. v. Serv. Corp. Int'l , 695 F.3d 330, 347 (5th Cir. 2012).

Total bases its Objections on the assertion that the Administrative Boundaries Map is the "best evidence" of adjacency, but concedes that this map was not a determination by a United States President. As a result, absent a Presidential determination, the Fifth Circuit has identified four factors to be considered in determining the "adjacent state" analysis for choice of law purposes under the Outer Continental Shelf Lands Act. See Snyder , 208 F.3d at 524-25. The Magistrate Judge properly considered these four factors and correctly determined that Alabama law applies to this dispute.

The Court, based on its de novo review, agrees fully with the Report and Recommendation. The Report and Recommendation will be adopted as this Court's Memorandum and Order. Accordingly, it is hereby

ORDERED that Total's Objections [Doc. # 161] to the Report and Recommendation are OVERRULED . It is further

ORDERED that the Magistrate Judge's Report and Recommendation [Doc. # 159] is hereby ADOPTED as the Court's Memorandum and Order. It is further

ORDERED that MOGUS's Motion for Partial Summary Judgment on Choice of Law [Doc. # 93] is GRANTED and Total's Motion to Apply Louisiana Law Under OCSLA [Doc. # 99] is DENIED .

REPORT AND RECOMMENDATION ON CROSS MOTIONS REGARDING CHOICE OF LAW

06/04/2018

Dena Hanovice Palermo, United States Magistrate Judge

Before the Court are the Parties' cross motions for summary judgment on the choice of law.1 Plaintiff Total E & P USA, Inc. ("Total") filed a Motion to apply Louisiana law under the Outer Continental Shelf Lands Act ("OCSLA"). Pl.'s Mot., ECF No. 99.2 Defendant Marubeni Oil &

*481Gas (USA) LLC ("MOGUS") filed a Motion for Partial Summary Judgment to apply Alabama law. Def.'s Mot. Part. Summ. J., ECF No. 93.3 Having considered the filings and the record, which contain both factual evidence and applicable legal authorities, the Court concludes that Alabama law should apply. Therefore, MOGUS' motion should be granted and Total's motion be denied.

I.

FACTUAL OVERVIEW

This case arises out of a dispute over liability for the decommissioning of three properties located in the Outer Continental Shelf ("OCS") in the Gulf of Mexico. This includes two oil and gas fields-Mississippi Canyon Block 305 ("MC 305") and Mississippi Canyon Block 348 ("MC 348")-and the Canyon Express Pipeline System ("CEPS") (collectively "the Assets") that connects these fields and others. Total filed a separate action as to each MC 305, MC 348, and CEPS, and MOGUS filed identical counterclaims in each case relating to all three properties.4 Total's action concerning CEPS is pending before this Court. Total's other two actions concerning MC 305 and MC 348 are pending before other courts in the Southern District of Texas.5 While the action concerning MC 348 is stayed, the Parties filed similar motions on the choice of law in the MC 305 action.6 "The CEPS traverses from MC 305 and MC 348 in a north/northeasterly direction and terminates at the Canyon Station Platform located on Main Pass Block 261 ("MP 261")." Def.'s Mot. Part. Summ. J. at 2, ECF No. 93. The CEPS traverses through each of the following OCS lease blocks in the Gulf of Mexico: MC 41, 85, 173, 217, 261, 305, 348, and 349; DeSoto Canyon Blocks ("DC"): 45, 89, 133, 177, 221, 265; Viosca Knoll Blocks ("VK") 692, 736, 780, 781, 824, 825, 869, 913, 914, 958, 1002, and 1003; MP 260 and 261. Id.

II.

LEGAL STANDARD

Pursuant to Rule 56 of the Federal Rules of Civil Procedure, "[s]ummary judgment is required when 'the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.' " Trent v. Wade , 776 F.3d 368, 376 (5th Cir. 2015) (quoting FED. R. CIV. P. 56(a) ).

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Bluebook (online)
389 F. Supp. 3d 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/total-ep-usa-inc-v-marubeni-oil-gas-usa-inc-txsd-2018.