Transcontinental Gas Pipe Line Corp. v. The Mobile Drilling Barge

424 F.2d 684, 1970 A.M.C. 1147, 37 Oil & Gas Rep. 87, 1970 U.S. App. LEXIS 9962
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 6, 1970
DocketNo. 27827
StatusPublished
Cited by20 cases

This text of 424 F.2d 684 (Transcontinental Gas Pipe Line Corp. v. The Mobile Drilling Barge) 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
Transcontinental Gas Pipe Line Corp. v. The Mobile Drilling Barge, 424 F.2d 684, 1970 A.M.C. 1147, 37 Oil & Gas Rep. 87, 1970 U.S. App. LEXIS 9962 (5th Cir. 1970).

Opinion

DYER, Circuit Judge:

This suit arose out of drilling operations being conducted in the Gulf of Mexico when the Drilling Barge “MR. CHARLIE”, owned and operated by Ocean Drilling and Exploration Company (ODECO), submerged and came in contact with a Transcontinental Gas Pipe Line Corporation (TRANSCO) 20-inch gas pipe line buried in Block 106 in the Eugene Island Area of the Gulf. TRANSCO brought this suit for injury to its pipe line against the barge “MR. CHARLIE” in rem. ODECO filed claim to it and impleaded Signal Oil and Gas Company (SIGNAL), the lease operator for whom ODECO had been performing the drilling operation under a Drilling and Rework contract.

[687]*687ODECO also impleaded Forest Oil Corporation (FOREST) et al., the co-owners of the lease with SIGNAL. These co-owners were not parties to the drilling contract with ODECO. There has never been any question either in the trial court or on appeal that TRANS-CO is faultless and is entitled to damages; the litigation concerns only the distribution of liability among ODECO, SIGNAL and FOREST, et al.

The issue of damages was severed and the District Court entered an interlocutory decree that:

the Drilling Barge “MR. CHARLIE” in rem and the third-party defendant SIGNAL in personam are jointly and severally liable to TRANS-CO for their concurrent negligence;
the negligence of the barge was minor and that of SIGNAL major and therefore ODECO is entitled to recover from SIGNAL for any sums ODECO is required to pay TRANS-CO;
SIGNAL is not entitled to indemnity from ODECO under the terms of the indemnity provisions in the Drilling and Rework Contract between ODECO and SIGNAL; and
the third party complaint of SIGNAL against FOREST et al. is dismissed with prejudice.1

We agree that SIGNAL and ODECO were concurrently negligent but find inapplicable any considerations of major-minor fault. We also agree that SIGNAL is not entitled to contractual indemnity from ODECO and that the third-party complaint against FOREST and the other co-owners of the lease was properly dismissed. Accordingly, we reverse the judgment insofar as it requires SIGNAL to reimburse ODECO and affirm it in all other respects.

I.

The parties have assigned as error nearly every aspect of the District Court’s order. We deal first with the contentions of SIGNAL and ODECO pertaining to the findings of negligence. Each party claims that the trial court erroneously found it negligent and, in the alternative, that even if it was negligent, its negligence was only minor in comparison with that of the other party and, therefore, the other party should be solely liable for the damage to TRANS-CO’s pipe line.

The facts relating to this issue are largely undisputed. Prior to 1963 FOREST obtained an oil and gas lease from the United States covering Block 106. FOREST had actual notice of the location of TRANSCO’s pipeline in Block 106 at the time it assigned an interest in the lease to SIGNAL and the other third-party defendants. The co-owners of the lease executed a written operating agreement covering the lease and designating SIGNAL as the operator. As operator of the lease, SIGNAL executed a written Drilling and Rework Contract with ODECO2 under which ODECO was, as an “independent contractor,” to conduct the drilling operation out of which TRANSCO’s damage arose.

The drilling location was selected by SIGNAL on the basis of geological information and approved by its co-owners on the same basis. At all material times, ODECO, SIGNAL and FOREST had in their possession small-scale maps showing the general location of TRANS-CO’s line across Block 106. Information as to its exact location was readily [688]*688available as it is a matter of public record reflected on maps and charts on file in various appropriate governmental agencies.3 No one on behalf of SIGNAL made any check for the existence of pipe lines or other underwater obstructions at the drilling location.

Pursuant to a requirement of the Drilling and Rework Contract between SIGNAL and ODECO that SIGNAL survey, stake and mark the proposed drilling location, SIGNAL hired Surveys, Inc. to plot and buoy the location of the proposed well and to “survey” “MR. CHARLIE” into the proper location for drilling. Mr. Powell, a Surveys Inc. employee, was on board “MR. CHARLIE” the night it was being moved to the drilling location in Block 106 and he directed the barge to that location.

ODECO’s director of safety testified that ODECO drilling barges had previously set down on at least a dozen pipe lines of more than 2 inches in diameter within the five or six years preceding the casualty involved in this case, that it was incumbent on the barge mover to find out if there was a pipe line in the drilling area and that he should look at a map before moving into a particular block to put a drilling barge on a drilling location. ODECO had maps of Block 106 in its office.

Vorenkamp, ODECO’s barge mover, testified that he did not look at any maps before going on board the barge and that although he had some maps reflecting the location of TRANSCO’s pipe line in Block 106 in his briefcase on board the barge, he did not recall looking at them either. He also admitted having personal knowledge that TRANS-CO had a pipe line running through Block 106, which encompasses an area of approximately 3 square miles, but that he nevertheless did not know where in Block 106 the drilling location was or where he was when he set down the barge. He relied on Powell, the employee of Survey’s, Inc., to get him to the location. The only check Vorenkamp made with respect to the existence of a pipe line at the drilling location came when the barge was en route to the location. He asked the surveyor, Powell, and SIGNAL’S drilling foreman who was on board if they knew of any pipe lines in the area and both answered that they did not know of any. Vorenkamp did not ask either Powell or the drilling foreman whether they knew if SIGNAL or Surveys, Inc. had made a check for pipe lines.

SIGNAL argues that it had no duty to check for the existence of pipe lines and that it therefore cannot be held negligent in planning for the drilling of the well. SIGNAL contends that by accepting the responsibility under the contract to drill at a specified location, ODECO assumed any responsibility for mishaps occasioned thereby. ODECO on the other hand, argues that it had a right to rely on SIGNAL’S expertise and that it cannot be held negligent because it fulfilled any duties it had when it set the barge down on the precise location called for in the contract. We think each party had a duty which it breached.

Many theories have been advanced in this case to support SIGNAL’S and ODECO’s contention that only the other of them is liable. For example, the District Court found ODECO negligent by virtue of the presumption of negligence which arises when a moving vessel collides with a fixed object. The parties themselves have resorted to analogy, each side arguing that the relative liabilities of a landowner or architect when a building contractor strikes underground pipes is analogous to the present situation. In view of the nature of the facts in this case, however, we pretermit any consideration as to the pertinency or applicability of either the presumption used by the District Court or the analo[689]*689gy suggested by the parties.

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Cite This Page — Counsel Stack

Bluebook (online)
424 F.2d 684, 1970 A.M.C. 1147, 37 Oil & Gas Rep. 87, 1970 U.S. App. LEXIS 9962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transcontinental-gas-pipe-line-corp-v-the-mobile-drilling-barge-ca5-1970.