West Cameron Port v. Lake Charles Harbor & Terminal Dist.

38 So. 3d 577, 9 La.App. 3 Cir. 509, 2010 La. App. LEXIS 692, 2010 WL 1873039
CourtLouisiana Court of Appeal
DecidedMay 12, 2010
Docket09-509
StatusPublished
Cited by2 cases

This text of 38 So. 3d 577 (West Cameron Port v. Lake Charles Harbor & Terminal Dist.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
West Cameron Port v. Lake Charles Harbor & Terminal Dist., 38 So. 3d 577, 9 La.App. 3 Cir. 509, 2010 La. App. LEXIS 692, 2010 WL 1873039 (La. Ct. App. 2010).

Opinions

THIBODEAUX, Chief Judge.

| ¶ Defendants, Lake Charles Harbor and Terminal District (LCP) and Cameron LNG, L.L.C. (Cameron LNG), appeal the trial court’s grant of summary judgment in favor of the plaintiff, West Cameron Port, Harbor, and Terminal District (West Cameron), and the denial of LCP’s and Cameron LNG’s motions for summary judgment. LCP and Cameron LNG argue that the trial court erred in its interpretation of statutory and other authorities with respect to LCP’s power to lease to Cameron LNG certain land — outside LCP’s territorial bounds — to construct and operate a liquified natural gas (LNG) facility. LCP and Cameron LNG further maintain that the trial court erred by transferring the ownership of the land at issue to West Cameron. Cameron LNG also argues that because federal law preempts West Cameron’s claim, the trial court erred by denying its lack of subject matter jurisdiction exception.

We reverse because we find that LCP had authority as a Local Sponsor to amend the lease subject to which it bought the land outside its territorial bounds, given (1) that the amendment did not require LCP to conduct port, harbor, and terminal activities in Cameron Parish, and (2) the amendment did not fundamentally change Cameron LNG’s operations so as to, in effect, constitute a new lease. We also find that because this case involves interpretation and construction of state law, Cameron LNG’s lack of subject matter jurisdiction exception is without merit.

I.

ISSUE

We shall consider whether LCP, which indisputably has authority to purchase land in Cameron Parish to maintain the condition of the Calcasieu River Channel (the channel), may amend the lease on the land it owns in Cameron Parish where:

|2(1) LCP bought the land in question subject to an existing lease to a third party that operated a liquified petroleum gas (LPG) facility, and
(2) the third party constructed an LNG plant pursuant to the amended lease.

II.

FACTS

LCP is a landlocked port because the only access for ships to LCP is through the channel that runs through West Cameron’s territory. The channel is a navigable waterway subject to a servitude in favor of the federal government. The Louisiana legislature gave the Governor the authority to enter into agreements with the federal government on behalf of the State or its political subdivisions to assure local cooperation with the federal government. La.R.S. 38:81.1 In 1961, Gov[581]*581ernor Jimmie Davis designated LCP the Local Sponsor for the purposes of channel improvements. This designation obligated LCP, without cost to the United States, to provide lands, easements, rights-of-way, and spoil-disposal areas necessary for the construction and maintenance of the channel.

hThe following is a brief history of LCP’s land acquisitions in Cameron Parish. A review of exhibits submitted to this court reveals a lack of evidence that LCP bought, acquired, or expropriated any land in Cameron Parish or anywhere else outside its territory prior to its Local Sponsor designation in 1961. None of the deeds to land in Cameron Parish LCP referenced are before 1961.

Exhibit #D-24a demonstrates that in 1948, LCP’s board adopted a resolution in which it relied on its “plenary jurisdiciton [sic] over the Lake Charles Harbor, Calca-sieu River and all terminal facilities therein within the said Parish of Calcasieu .... ” (Emphasis added). LCP board resolved that it would give assurances of local cooperation to the Secretary of the Army for “that portion of the said work of improvement within the territorial area of the City of Lake Charles and the Parish of Calcasieu, Louisiana, [which] is within the jurisdiction of the [LCP] .... ” (Emphasis added). From this, it is clear that LCP started to act on behalf of the United States to maintain the channel around 1948 but only within Calcasieu Parish.

Attached to the exhibit referencing the 1948 resolution is another board resolution dated February 8,1961 — three weeks after the Governor designated LCP the Local Sponsor on January 18,1961. There, LCP board resolved that it would provide to the United States assurances of local cooperation “for both Calcasieu and Cameron Parishes, Louisiana.... ”

Exhibit # D-74, an affidavit of Channing F. Hayden, Jr., LCP’s Director of Navigation and Security, reveals that before 1960, the “local assurances and obligations were supplied by a combination of the Calcasieu Parish Police Jury, the Cameron Parish Police Jury and the LC Port.” That changed in 1960 when Louisiana’s legislature designated the State of Louisiana to be responsible for the assurances of local cooperation. Then, the Governor designated LCP the Local |4Sponsor. Hayden goes on to state that “[a]s the result of its role as the ‘local sponsor’ of the Channel, the LC Port has thus entered into a series of resolutions, agreements and assurances over the years to the United States and the Corps in connection with the construction, maintenance and operation of the Channel.” (Emphasis added). Hayden then writes that “[i]n Cameron Parish alone, in order to discharge its responsibilities as ‘local sponsor’ for the Channel [582]*582Project, the LC Port has thus been required to secure more than fifteen (15) such [dredge disposal] sites-” (Emphasis added). Furthermore, Hayden states that “[l]ikewise, the LC Port has obtained numerous other rights of entry, servitudes, easements and/or acquisitions in connection with property located in Cameron Parish in discharge of its responsibilities to serve as the local sponsor of the Channel.(Emphasis added).

In 1999, LCP acquired, for dredge disposal purposes, about two hundred acres of land along the channel in Cameron Parish for five hundred and fifty thousand dollars. At the time of the acquisition, a portion of the land was leased to a third party that operated an LPG facility on that land. That LCP had authority to buy this land is not in dispute.

Both Hayden and Adam McBride, LCP’s Director, swore that LCP bought the property in question under the port’s Local Sponsor authority. In his affidavit, Hayden writes that “[i]n further discharge of its duties and responsibilities as the ‘local sponsor’ for the Channel, the LC Port also purchased on February 1, 1999 a track [sic] of land along the Channel and near Hackberry, LA in Cameron Parish (the ‘Cameron LNG Property1), which is currently leased to Cameron LNG....” (Emphasis added). Exhibit # D-73, McBride’s affidavit, reveals that “[t]he LC Port purchased the Cameron LNG Property in connection with its duties to provide |5for dredge soil disposal areas adjacent to the Channel in its role as ‘local sponsor’ for the channel.” (Emphasis added).

In 2001, the operator of the LPG facility (Cameron LNG’s predecessor) proposed to amend the existing lease to allow for the construction and operation of an LNG plant. With the support of Cameron Police Jury and West Cameron, LCP entered into the amended lease.

Prior to the construction of the LNG facility, the future operator of the facility had to obtain permits and authorizations from various institutions, including the United States Federal Energy Regulatory Commission (FERC). Throughout this lengthy regulatory process, West Cameron and Cameron Parish Police Jury encouraged the development of the LNG project by writing letters of support to FERC.

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Related

Lemelle v. St. Charles Gaming Co.
118 So. 3d 1 (Louisiana Court of Appeal, 2012)
West Cameron Port v. Lake Charles Harbor & Terminal Dist.
38 So. 3d 577 (Louisiana Court of Appeal, 2010)

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Bluebook (online)
38 So. 3d 577, 9 La.App. 3 Cir. 509, 2010 La. App. LEXIS 692, 2010 WL 1873039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-cameron-port-v-lake-charles-harbor-terminal-dist-lactapp-2010.