United States v. Transocean Deepwater Drilling Inc.

936 F. Supp. 2d 818, 2013 WL 1345246, 2013 U.S. Dist. LEXIS 46537
CourtDistrict Court, S.D. Texas
DecidedMarch 30, 2013
DocketCivil Action No. H-11-3638
StatusPublished

This text of 936 F. Supp. 2d 818 (United States v. Transocean Deepwater Drilling 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
United States v. Transocean Deepwater Drilling Inc., 936 F. Supp. 2d 818, 2013 WL 1345246, 2013 U.S. Dist. LEXIS 46537 (S.D. Tex. 2013).

Opinion

ORDER

LEE H. ROSENTHAL, District Judge.

This case challenges the jurisdiction of the United States Chemical Safety and Hazard Investigation Board (“CSB”) to investigate the release of chemicals resulting from the May 2010 explosion and fire on the Deepwater Horizon drilling rig in the Gulf of Mexico at British Petroleum’s Ma-condo well. The United States petitions to enforce subpoenas the CSB issued to Transocean Deepwater Drilling, Inc. (“Transoeean”), the rig owner. Trans-ocean has moved under Federal Rule of Civil Procedure 12(b)(6) to dismiss the petition on the ground that the subpoenas are unenforceable. In the alternative, Transocean moves to quash the subpoenas. (Docket Entry No. 23). The court heard oral argument on these issues, (Docket Entry No. 43), and has considered the motions, the accompanying briefing and exhibits, the arguments of counsel, and the relevant law. For the reasons explained below, the motion to dismiss or to quash is denied.

I. Background

This dispute arises from the explosion and fire on the offshore drilling rig Deep-water Horizon on April 20, 2010. See In re: Oil Spill by the Oil Rig “DEEPWATER HORIZON” in the Gulf of Mexico on April 20, 2010, 844 F.Supp.2d 746, 747-48 (E.D.La.2012). The April 20, 2010 blowout event did not immediately result in the release of oil into the water. Instead, the collapse of the riser structure created a flow path for the subsea discharge of crude oil approximately two days later. See id. at 748 & n. 4 (explaining that Transocean’s position is “that any oil that traveled up the riser to the deck of the MODU during th[e] time [of the blowout event] would have combusted in the fire before it could have entered the water”).

Many governmental and other entities investigated the blowout, explosion, fire, and oil spill. The CSB issued five subpoenas at issue in this litigation, two on. November 24, 2010, one on March 9, 2011, and two on April 7,2011. (Docket Entry No. 1, Petition, ¶ 11). These subpoenas seek, among other things, all records collected by the Transocean internal investí[821]*821gation team. (Id., ¶ 13). They also seek all records provided to the Joint Investigative Team, which consists of members of the United States Coast Guard and what was formerly the Mineral Management Service (now the Bureau of Ocean Energy Management Regulation and Enforcement), two federal agencies granted express authority to investigate the incident. (Id., ¶ 15).

After Transocean was served with the CSB subpoenas, it took the position that the CSB lacked authority to investigate the Macondo incident. On October 12, 2011, Transocean told counsel for CSB and the United States that it would not comply with the subpoenas. The United States, on behalf of the CSB, filed the present petition under 28 U.S.C. § 1345 and 42 U.S.C. §§ 7412(r)(6)(A)-(S) and 7607(a), to enforce the administrative subpoenas. (Docket No. 1).

II. The Legal Standard

To enforce its administrative subpoenas in a federal district court, a governmental agency must show that: (1) the investigation will be conducted pursuant to a legitimate purpose; (2) the inquiry may be relevant to the purpose; (3) that the information sought is not already within the agency’s possession; and (4) that internal administrative procedures have been followed. See U.S. v. Powell, 379 U.S. 48, 57-58, 85 S.Ct. 248, 13 L.Ed.2d 112 (1964); Burlington N.R.R. Co. v. Office of Inspector Gen., R.R. Ret. Bd., 983 F.2d 631, 638 (5th Cir.1993). When called on to enforce an administrative subpoena, a court must evaluate whether: (1) the subpoena was issued for a lawful purpose within the statutory authority of the issuing agency; (2) the documents requested are relevant to that purpose; and (3) the subpoena demand is reasonable and not unduly burdensome. See, e.g., Okla. Press Publ. Co. v. Walling, 327 U.S. 186, 209, 66 S.Ct. 494, 90 L.Ed. 614 (1946); Endicott Johnson Corp. v. Perkins, 317 U.S. 501, 509, 63 S.Ct. 339, 87 L.Ed. 424 (1943); Burlington N., 983 F.2d at 638 (citing U.S. v. Morton Salt Co., 338 U.S. 632, 652, 70 S.Ct. 357, 94 L.Ed. 401 (1950)).

Courts should not enforce administrative subpoenas issued in an investigation if the agency lacks jurisdiction to investigate. See, e.g., E.E.O.C. v. Karuk Tribe Hous. Auth., 260 F.3d 1071, 1077 (9th Cir.2001) (quashing an administrative subpoena because agency’s investigation exceeded its jurisdiction); see also Marshall v. Burlington N., Inc., 595 F.2d 511, 513 (9th Cir.1979); Reich v. Great Lakes Indian Fish & Wildlife Comm’n, 4 F.3d 490, 491-92 (7th Cir.1993). An administrative-enforcement proceeding is an appropriate forum for challenging an agency’s jurisdiction. See F.T.C. v. Ken Roberts Co., 276 F.3d 583, 587 (D.C.Cir.2001); see also Audubon Life Ins. Co. v. F.T.C., 543 F.Supp. 1362, 1367 (D.C.La.1982). But a district court may not inquire into an agency’s jurisdiction in an enforcement action so long as the material sought by the subpoena is not “plainly incompetent or irrelevant to any lawful purpose” of an agency. Endicott Johnson, 317 U.S. at 509, 63 S.Ct. 339.

The Powell standard is intended to be “a minimal burden” and one “which may be met by a simple affidavit filed with the petition to enforce.” United States v. Tex. Heart Inst., 755 F.2d 469, 474 (5th Cir.1985); see also Burlington N., 983 F.2d at 637 (“It is settled that the requirements for judicial enforcement of an administrative subpoena are minimal.”). Because the United States established its prima facie case under Powell, the burden of going forward shifted to Transocean. See United States v. Wilson, 864 F.2d 1219, 1222 (5th Cir.1989); United States v. Davis, 636 F.2d 1028, 1034 (5th Cir.1981).

[822]*822III. Analysis

A. The Statutory Authority for the CSB’s Investigation

The CSB is a federal agency created by the Clean Air Act (“CAA”) Amendments of 1990, Pub.L. No. 101-549, 104 Stat. 2399. See 40 C.F.R. § 1600.1. The authorizing statute is codified _ at 42 U.S.C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Demette v. Falcon Drilling Co.
280 F.3d 492 (Fifth Circuit, 2002)
United States v. Kay
359 F.3d 738 (Fifth Circuit, 2004)
Carrieri v. Jobs.Com Inc.
393 F.3d 508 (Fifth Circuit, 2004)
Grand Isle Shipyard Inc. v. SEACOR MARINE, LLC.
589 F.3d 778 (Fifth Circuit, 2009)
Endicott Johnson Corp. v. Perkins
317 U.S. 501 (Supreme Court, 1943)
Oklahoma Press Publishing Co. v. Walling
327 U.S. 186 (Supreme Court, 1946)
Foley Bros., Inc. v. Filardo
336 U.S. 281 (Supreme Court, 1949)
United States v. Morton Salt Co.
338 U.S. 632 (Supreme Court, 1950)
United States v. Wise
370 U.S. 405 (Supreme Court, 1962)
United States v. Philadelphia National Bank
374 U.S. 321 (Supreme Court, 1963)
United States v. Powell
379 U.S. 48 (Supreme Court, 1964)
Louisiana Pub. Serv. Comm'n v. FCC
476 U.S. 355 (Supreme Court, 1986)
Chao v. Mallard Bay Drilling, Inc.
534 U.S. 235 (Supreme Court, 2002)
Federal Trade Commission v. Ken Roberts Co.
276 F.3d 583 (D.C. Circuit, 2001)
Gerald P. Garrett v. C.C. Higgenbotham, Jr.
800 F.2d 1537 (Eleventh Circuit, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
936 F. Supp. 2d 818, 2013 WL 1345246, 2013 U.S. Dist. LEXIS 46537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-transocean-deepwater-drilling-inc-txsd-2013.