United Texas Transmission Co. v. United States Army Corps of Engineers

7 F.3d 436, 1993 U.S. App. LEXIS 29843, 1993 WL 444003
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 18, 1993
Docket91-4638
StatusPublished
Cited by9 cases

This text of 7 F.3d 436 (United Texas Transmission Co. v. United States Army Corps of Engineers) 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
United Texas Transmission Co. v. United States Army Corps of Engineers, 7 F.3d 436, 1993 U.S. App. LEXIS 29843, 1993 WL 444003 (5th Cir. 1993).

Opinion

WIENER, Circuit Judge:

We write today to resolve a long-standing dispute as to the party responsible for the costs of relocating sections of two pipelines which, pursuant to permits issued by the United States Army Corps of Engineers (the Corps), ran under the Hillebrandt Bayou (the bayou) in Southeast Texas. At all relevant times, the pipelines were owned by the United Texas Transmission Company (UTTCO). Their relocation was required to conform with a project to widen and deepen the bayou. This project was a joint endeavor of Jefferson County Drainage District NO. 6 (Drainage District) and the Corps. UTTCO refused the Corps’ order to relocate the lines until UTTCO received assurances that it would receive reimbursement for costs and expenses of relocation. In turn, the Corps revoked UTTCO’s permits to cross under the bayou, a navigable stream, and this litigation ensued.

The district court granted summary judgment in favor of the Corps and the Drainage District, holding that UTTCO could be compelled to pay for the entire relocation of the pipelines under the permits. The court also held that, in the face of UTTCO’s refusal to comply with the Corps’ order to relocate the pipelines, the Corps’ revocation of UTTCO’s permits was not an abuse of its discretion. Even though we view the case in a different manner than did the district court, we affirm.

I

FACTS AND PROCEDURAL HISTORY

Historically, Southeast Texas in general and Jefferson County in particular have been plagued by destructive floods. Man’s attempts to alter drainage patterns in the area have been legion but less than wholly successful. Specifically, since 1912, numerous efforts have been instituted to curb the problems resulting from the flooding of the bayou.

The instant widening and deepening project was instituted under the aegis of the Flood Control Act of 1965, which authorized many such projects throughout the country. 1 These projects are conducted as joint efforts between local sponsors, such as the Drainage District (with local funds furnished for the particular improvement), and the Corps (with funds appropriated by Congress).

In 1972, the United States and the Drainage District entered into a “Local Cooperation Agreement.” 'Under that agreement, the Drainage District was to work with the Corps and was to provide all the necessary lands, easements, and rights of way necessary for the project. In addition, the Drainage District agreed to make “all necessary alterations and relocations of structures and utilities” that were necessary for the project.

In 1951 and 1956, UTTCO’s predecessor in ownership of the pipelines was granted permits from the Corps to lay two gas pipelines under the bed of the bayou. When UTTCO acquired the pipelines it succeeded to these permits (and to easements across lands abutting the bayou — lands through which portions of the pipelines ran). The permits were issued by the Corps pursuant to § 10 of the Rivers and Harbors Act of 1899 (hereafter, § 10 permits). The language of ¶ (f) of the instant § 10 permits is relevant to our inqui *439 ry. That paragraph provides, in pertinent part:

(f) That if the future operations by the United States require an alteration in the position or the structure or work herein authorized ... the owner will be required upon due notice from the Secretary of the Army, to remove or alter the structural work or obstructions caused thereby without expense to the United States... . 2

The scope of the Corps’ authority under ¶ (f) to demand relocation of the pipelines at the expense of the permit holder is at the heart of this lawsuit.

In 1987, UTTCO was informed by the Corps that the pipelines would have to be relocated to accommodate the flood control project. UTTCO instituted the preparation of a preliminary estimate of the cost of the necessary relocations. When the results were received, the Corps and the Drainage District were advised by UTTCO that it was prepared to go forward with the relocation as soon as it received assurance from the Drainage District that UTTCO would be reimbursed for the entire cost of relocation— approximately $1,060,000. Initially, the Corps agreed with UTTCO’s assertion that the Drainage District was responsible for at least some of the cost of the pipeline reloca-tions. Later, however, the Corps took the position (with the Drainage District) that, under the language of the permits, the Corps could require UTTCO to relocate the pipelines and absorb the entire cost. 3

When UTTCO made clear that it was not prepared to relocate the pipelines without assurances of reimbursement, a stalemate developed. The parties corresponded and met frequently, each attempting to convince the other that it had to pay for the reloca-tions. These efforts failed, however, with a result that the flood control project was delayed by UTTCO’s unflagging refusal to relocate its pipelines until it received assurances of reimbursement.

In February 1989, the Corps notified UTT-CO that its § 10 permits had been suspended and advised UTTCO of its right to require a public hearing. According to that notification, appropriate action on the permits— which could include reinstatement, modification, or revocation — would be taken only after such a hearing (if one were requested). The public hearing was held in June 1989. The principal matter discussed was whether the Corps’ use of its asserted authority to force UTTCO to move its pipelines at its own expense would be in the “public interest.” UTTCO continued to refuse to bear the relocation cost, arguing that the Corps had no authority to order such a relocation. UTT-CO also continued to maintain that under the Cooperation Agreement the Drainage District was obligated to pay for any required relocations.

After the public hearing but before the Corps took formal action on the permits, UTTCO filed the instant lawsuit, naming the Corps and the Drainage District as defendants. The lawsuit was filed in July 1989, and in it UTTCO sought monetary, injunc-tive, and declaratory relief. Essentially, UTTCO sought a determination that it could not be forced by the Corps to pay for the relocation of the pipelines.

In August 1990, over a year after this suit was filed, the Corps formally considered the status of UTTCO’s § 10 permits. The Corps noted that UTTCO had been notified repeatedly of the need to relocate the pipelines, but that UTTCO had consistently refused to comply. The Corps also asserted that it had authority to revoke the permits of a recalcitrant permit holder such as UTTCO, citing a string of precedents which held that a permit holder does not have a vested interest in the permit. As for UTTCO’s argument that the Corps had no authority to order relocation of *440 facilities situated outside the boundaries of the stream as they existed when the § 10 permits were issued, the Corps found:

The permits do not provide that future operations be within the stream bed of the Hillebrandt Bayou, or that the owner must be given assurance of compensation for such pipeline relocation on the fastlands [i.e., the lands outside of the original stream banks].

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Bluebook (online)
7 F.3d 436, 1993 U.S. App. LEXIS 29843, 1993 WL 444003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-texas-transmission-co-v-united-states-army-corps-of-engineers-ca5-1993.