Warrior Energy Services Corp. v. ATP Titan

941 F. Supp. 2d 699, 2013 A.M.C. 1960, 2013 WL 1739378, 2013 U.S. Dist. LEXIS 57269
CourtDistrict Court, E.D. Louisiana
DecidedApril 22, 2013
DocketCivil Action No. 12-2297
StatusPublished
Cited by3 cases

This text of 941 F. Supp. 2d 699 (Warrior Energy Services Corp. v. ATP Titan) 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
Warrior Energy Services Corp. v. ATP Titan, 941 F. Supp. 2d 699, 2013 A.M.C. 1960, 2013 WL 1739378, 2013 U.S. Dist. LEXIS 57269 (E.D. La. 2013).

Opinion

ORDER AND REASONS

SARAH S. VANCE, District Judge.

Before the Court is defendants’ motion to dismiss for lack of jurisdiction.1 Also before the Court are plaintiffs’ motions to deem in rem jurisdiction perfected2 or, in the alternative, to issue a warrant for arrest3 and to appoint a consent guardian.4 For the following reasons, the Court grants defendants’ motion to dismiss and denies plaintiffs’ motions as moot.

I. BACKGROUND

This dispute stems from fees allegedly owed to plaintiffs for tools and services provided to the ATP TITAN, a floating production facility moored approximately 65 miles offshore of Louisiana in a production field owned by ATP Oil and Gas. Six plaintiffs, Warrior Energy Services Corporation, Fastorq LLC; Stabil Drill Specialties LLC, Workstrings International LLC, and Superior Energy Services, LLC d/b/a Superior Completion Services, contend that they provided supplies and services to the ATP TITAN, the costs of which have not been paid by ATP Titan, a limited liability company that owns the platform.5 Plaintiffs filed suit on September 17, 2012, asserting maritime liens against the ATP TITAN and state law privileges in the alternative against ATP Titan, in person-am, and the ATP TITAN, in rem.6 Plaintiffs do not assert claims against ATP Oil and Gas, the company that operates the platform and contracted with plaintiffs for supplies and services. ATP Oil and Gas is presently in bankruptcy proceedings. Plaintiffs also seek a declaratory judgment that the ATP TITAN is a vessel and that they have valid liens in the amount of $2,189,424.86, in addition to pre-judgment and post-judgment interest.7

Defendants filed a motion to dismiss for lack of jurisdiction on the grounds that the ATP TITAN is not a vessel but a floating production platform, thus depriving the Court of in rem jurisdiction over the ATP TITAN.8 The parties then moved for an extension of deadlines to permit plaintiffs to conduct limited jurisdictional discovery on the issue of whether the ATP TITAN is a vessel.9 The Court heard oral argument on defendants’ motion to dismiss on March 26, 2013.

II. IN REM JURISDICTION

A. Standard

The first issue before the Court is whether the ATP TITAN is a vessel. Un[701]*701less it is, plaintiffs have no maritime liens for the provision of necessaries to the ATP TITAN, and seizure of the ATP TITAN is not a basis for maritime in rem jurisdiction. Under 46 U.S.C.A. § 31342(a), “a person providing necessaries to a vessel on the owner’s order or on the order of an authorized person ... has a maritime lien on the vessel.” Further, Rule C of the Supplemental Rules for Admiralty and Maritime Claims provides that an action in rem may be brought to enforce a maritime lien by the arrest of a vessel. Fed.R.Civ.P. Supp. R. C(1)(a). Therefore, absent vessel status, plaintiffs have no maritime claims against the ATP TITAN that can support the exercise of in rem jurisdiction in admiralty. See Effjohn Int’l Cruise Holdings, Inc. v. A & L Sales, Inc., 346 F.3d 552, 556 (5th Cir.2003) (“Non-maritime claims are not within admiralty jurisdiction and may not be enforced in an in rem proceeding.”); Maritrend, Inc. v. M/V SEBES, No. 96-3140, 1997 WL 660614, at *2 (E.D.La. Oct. 23, 1997). (Maritime Lien Act permits civil action against vessel based on “fiction that the vessel is a distinct entity that is statutorily liable for its own debts”).

B. Characteristics of the ATP TITAN

The ATP TITAN is a triple-column, deep-draft, floating production facility.10 It is moored in over 4000 feet of water in a production field owned by ATP Oil and Gas.11 The ATP TITAN serves as a pro-

duction hub for the fields nearby, and several wells are connected by top-tensioned production risers and surface trees at the surface of the facility.12 In November 2009, the ATP TITAN was floated out and wet towed on its side and was fully installed by March 2010.13 Its hull floats at a draft of 430 feet on three columns.14 The ATP TITAN has features such as a wave-rider hull, navigational lights, life boats, crew quarters, and an onboard generator and drinking-water plant.15 It also has hydrocarbon processing equipment to separate oil, gas and water, pumps to transport oil production into an oil export line, and gas compressors to transport gas production.16 At one time, the ATP TITAN had aboard the Nabors 202 drilling rig, owned by a third party.17 The ATP TITAN is classified by the American Bureau of Shipping as an “A1 Floating Offshore Installation” and as an “Industrial Vessel” by the Coast Guard, which performs inspections of the structure.18 The design of the ATP TITAN is subject to a patent in which the structure is described as “a deep draft partially submersible and buoyant floating vessel comprised of at least three independent vertical columns.”19

Although it is buoyant, the ATP TITAN is securely moored to the floor of the Outer Continental Shelf by twelve moorings connected to mooring piles that are embedded over 205 feet into the sea floor and weigh over 170 tons each.20 The structure is also stabilized by flowlines, [702]*702umbilicals, and pipeline systems.21 It has no means of self-propulsion but can reposition itself over wells by manipulating its mooring lines.22 The ATP TITAN has not been moved since 2010, and ATP Oil and Gas states that it will not be moved until the surrounding fields are no longer productive, estimated to be in five to eight years.23 The structure has an expected life of roughly 40 years.24 To move the ATP TITAN to a new location will take approximately 15-29 weeks after 12 months of preparation and will cost between $70 and $80 million.25 Before being towed, the ATP TITAN will have to be decommissioned and its moorings, well risers, pipelines, umbilicals, and production infrastructure disconnected.26

C. Vessel status of offshore structures

The statutory definition of a vessel includes “every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water.” 1 U.S.C. § 3. Within this general definition, courts have analyzed the vessel status of various types of offshore structures. The Fifth Circuit Court of Appeals has addressed the distinction between vessels and other facilities used in offshore oil and gas operations on more than one occasion.27 In Fields v. Pool Offshore, Inc.,

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941 F. Supp. 2d 699, 2013 A.M.C. 1960, 2013 WL 1739378, 2013 U.S. Dist. LEXIS 57269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warrior-energy-services-corp-v-atp-titan-laed-2013.