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

294 F. Supp. 1025, 33 Oil & Gas Rep. 77, 1968 U.S. Dist. LEXIS 10033
CourtDistrict Court, E.D. Louisiana
DecidedDecember 30, 1968
DocketCiv. A. No. 67-32
StatusPublished
Cited by3 cases

This text of 294 F. Supp. 1025 (Transcontinental Gas Pipe Line Corp. v. The Mobile Drilling Barge) 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
Transcontinental Gas Pipe Line Corp. v. The Mobile Drilling Barge, 294 F. Supp. 1025, 33 Oil & Gas Rep. 77, 1968 U.S. Dist. LEXIS 10033 (E.D. La. 1968).

Opinion

MITCHELL, District-Judge.

This suit involves the following corporations, hereinafter referred to by the [1027]*1027abbreviations appearing in parentheses after each:

Amerada Petroleum Corporation (AMERADA)

Dorn & Miller (D&M)

Exchange Oil & Gas Company (EXCHANGE)

Forest Oil Corporation (FOREST)

Louisiana Land and Exploration Company (LL&E)

Ocean Drilling & Exploration Company (ODECO)

Preston Oil Company (PRESTON) Signal Oil and Gas Company (SIGNAL)

Texas Gas Exploration Corporation (TGE) and

Transcontinental Gas Pipe Line Corporation (TRANSCO)

The casualty complained of occurred in the Eugene Island Area, off the Louisiana Coast in the Gulf of Mexico, each segment of which is approximately three miles square and designated a Block, by number. The location and borderline of each Block is reflected on well recognized maps used by the various agencies of the United States of America and the State of Louisiana, as well as the oil industry, in connection with oil and gas leasing, exploration and production in the offshore waters of the Gulf of Mexico.

Sometime in July, 1963, TRANSCO, plaintiff herein, secured all required permits and rights-of-way for the construction (laying) of a twenty inch gas pipe line across the floor of the Gulf of Mexico, offshore in the Eugene Island Area.

TRANSCO’s pipe line was buried about five feet under the floor of the Gulf running diagonally across Block 106 in a northwest/southeast direction.

Sometime prior to 1963 FOREST obtained from the United States an oil and gas lease covering Block 106. On or about January 7, 1966, FOREST entered into an Operating Agreement with SIGNAL, LL&E, EXCHANGE, AMER-ADA, PRESTON, TGE and D&M under the terms of which one or more wells would be drilled in Block 106, the respective rights and liabilities of the participating parties being clearly defined therein, SIGNAL being designated as Operator.

On or about October 29, 1965, SIGNAL, for the benefit of itself and the other parties to the agreement, entered into a contract with ODECO, pursuant to which ODECO agreed to drill a well at a location 6,700 feet south and 4,000 feet west of the northeast corner of Block 106. This contract, designated in the record as the Drilling and Rework Contract, called for the use of a submersible type drilling barge known as the Mr. Charlie in the drilling of the proposed well.

The Mr. Charlie, at all times material hereto owned, operated and navigated by ODECO, is a submersible, flat bottom drilling barge equipped with steel “stabilizing skirts” affixed to, and running along her bottom on both her port and starboard sides. They extended downward (below her bottom) approximately five feet. The Mr. Charlie is without motive power and must be towed or moved by tugs when afloat. When being raised, lowered, or moved from one location to another, she is in command of an employee of ODECO, variously referred to as the barge operator, barge mover or captain who, at all times material hereto, was Steve Vorenkamp, a regular employee of ODECO.

Pursuant to the contract, and through the use of tugs paid for by SIGNAL, the Mr. Charlie, under Vorenkamp’s control, was towed to the drill site designated in the contract, the exact location previously having been surveyed and buoyed by Surveyors, Inc., an independent surveying company engaged and paid by SIGNAL.

When the Mr. Charlie arrived in the proximity of the drill site, Surveyors’ employees gave Vorenkamp advice necessary to enable him to position the Mr. Charlie’s drilling slot within fifty feet of the buoyed location, that being the [1028]*1028tolerance or variation acceptable in the industry. The final resting position of the barge in relation to the position called for in the contract was thereupon approved by SIGNAL’S representative, who was aboard the Mr. Charlie. After being positioned on January 8, 1966, the tanks of the Mr. Charlie were flooded and she was submerged so as to rest on the bed of the Gulf. Thereafter, normal drilling operations commenced and continued until the morning of January 12, 1966, by which time the well was down to a depth of over 5,000 feet.

On or about January 12, 1966, (through means never brought out during the trial) it was discovered that the Mr. Charlie lay almost directly across TRANSCO’s gas pipe line, in such a manner that her stabilizing skirts rested on and made contact therewith, causing the damage of which complaint is herein made.

On or about January 12, 1967, TRANSCO filed this complaint, in rem, against the Mr. Charlie, her engines, tackle, apparel, etc., for the damage allegedly sustained by its pipe line as a result of the Mr. Charlie resting on it. Admiralty and maritime jurisdiction of this Court was alleged and admitted by all parties.

ODECO filed claim as owner of the Mr. Charlie, answered the complaint and thereafter filed third party complaints against FOREST, SIGNAL, LL&E, EXCHANGE, AMERADA, PRESTON, TGE and D&M. All third party defendants answered both the original and third party complaints.

The matter came on for trial before this Court during the period September 23-26, 1968, inclusive. Upon completion of testimony and oral argument, the Court, from the bench, orally announced its reasons for judgment, and directed the parties to submit proposed findings of fact and conclusions of law. After receiving and considering those proposed, the Court now makes the following findings of fact and conclusions of law.

FINDINGS OF FACT

1.

At all times material hereto TRANSCO was the sole owner of a twenty inch gas pipe line transversing Block 106 of the Eugene Island Area in the Gulf of Mexico, off the coast of the State of Louisiana. Prior to construction of the pipe line, TRANSCO obtained all proper and necessary permits and rights-of-way. The location, depth and course of the pipe line, as laid, corresponded in all respects with the permits and authorizations granted by state and federal agencies, and the existence and location of the pipe line, at the time of this occurrence, were clearly reflected on numerous maps, charts and drawings which TRANSCO was required to file with state and federal agencies having jurisdiction over such matters. The maps, charts and drawings showing the exact location of TRANSCO’s pipe line were on file with (among other agencies) the Bureau of Land Management, United States Department of Interior; the United States Army Corps of Engineers; and the Louisiana Department of Conservation, and were readily accessible and available to the public, including all parties hereto, at all times.

TRANSCO was wholly without knowledge of the contemplated drilling of instant oil well in Block 106 and there is no suggestion whatsoever of any negligence or fault on its part.

2.

Prior to the construction of its pipe line, and prior to the date FOREST assigned an interest in its lease to SIGNAL and others, FOREST, as required by law (as holder of a lease to be transversed by the pipe line), was given actual notice by TRANSCO of the proposed location of its pipe line across Block 106. There is no evidence that FOREST did or did not notify SIGNAL of receipt of notice of the proposed location of TRANSCO’s pipe line, or its subsequent existence across Block 106.

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Bluebook (online)
294 F. Supp. 1025, 33 Oil & Gas Rep. 77, 1968 U.S. Dist. LEXIS 10033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transcontinental-gas-pipe-line-corp-v-the-mobile-drilling-barge-laed-1968.