GARDES DIR. DRILLING v. US Turnkey Exploration, 89-1156-LC.

Citation815 F. Supp. 956
Decision Date16 March 1993
Docket NumberNo. 89-1156-LC.,89-1156-LC.
PartiesGARDES DIRECTIONAL DRILLING v. U.S. TURNKEY EXPLORATION, INC.
CourtU.S. District Court — Western District of Louisiana

Susan C. Severance, Lafayette, LA, for Gardes Directional Drilling.

Paul B. David and Bryan Scofield, Broussard, David & Daigle, Lafayette, LA, L.A.J.F.P. Drilling, Ltd.

Patrick W. Gray, Joseph P. Hebert, Kerry M. Massari, Liskow & Lewis, Lafayette, LA, for Chevron Oil Co., Phillips Petroleum Co., CNG Producing Co., Kerr McGee Corp., Felmont Oil Corp., Cabot Corp., Case-Pomeroy Oil Corp., Sonat Exploration Co., Senior G & A Operating Co. Inc. USA, Chevron U.S.A., Inc. and Cabot Oil & Gas Corp.

Thomas C. Patin, Strain, Dennis, Ellis, Mayhall & Bates, Lafayette, LA, for Baxter Drilling & Exploration Inc.

Douglas Frank Pedigo, Aquila Energy, Omaha, NE, for P S I Inc. of Missouri.

Jennifer L. Davis, Elkins & Yount, Houston, TX, for U.S. Turnkey Exploration Inc.

Leonard K. Knapp, Jr., Office of Leonard K. Knapp, Jr., Lake Charles, LA, for Ace Fishing & Rental Tools Inc.

Henry H. McCreight, Jr., Houston, TX, for American Downhole Ltd. Partnership No. 1.

Henry D.H. Olinde, Jr., Beckner & Assoc., Baton Rouge, LA, for Western Atlas Intern. Inc.

Nathan A. Levy, Jr., St. Martin, Lirette & Shea, Houma, LA, for Coastal Inspection Service, Inc.

Victor A. Ashy, Ashy & Olivier, Lafayette, LA, for Drilling Measurements Inc.

Brad A. Adams, Sessions Fishman Rosenson Boisfontaine & Nathan, New Orleans, LA, for L & L Oil Co. consolidated defendant.

Carl T. Schultz, Green Patterson & Schultz, Houston, TX, for Liquid Drill Inc. and Milchem Inc., Millpark Drilling Fluids, Progress Chemical Sales Co.

Patrick Donavon Gallaugher, Jr., Scofield, Gerard, Veron, Hoskins & Soileau, Lake Charles, LA, for Marine Transp. Services Inc.

Dennis Joseph Vidrine, Jeansonne & Briney, Lafayette, LA, for Oil Field Rental Service Co. Fanned Seidel, Jr., Lafayette, LA, for Royal Service & Rent.

MEMORANDUM RULING

TRIMBLE, District Judge.

Several motions are now before the court for its consideration, a Motion for Leave to File Counterclaim filed on behalf of Marine Transportation Services, Inc. ("Marine"), a Motion for Leave to File Counterclaim filed on behalf of Ace Fishing and Rental Tools, Inc. ("Ace"), a Motion to set hearing for Leave to File Complaint/Counterclaim on behalf of Drilling Measurements, Inc. ("Drilling"), and a Motion to Amend answer to complaint, counterclaims, and cross claims filed on behalf of L.A.J.F.P. Drilling, Ltd. ("LAJFP"). In order to rule on these motions, however, this court must determine whether subject matter jurisdiction exists to hear them. Essentially, this court must determine the extent of its jurisdiction to rule on lien claims against a drilling platform formerly located on the Outer Continental Shelf ("OCS") and on claims for wrongful removal and disposal of the platform and related property, once such property was removed from the OCS and transported to Louisiana.

FACTS AND PROCEDURAL HISTORY
Setting

Kerr-McGee Corporation ("Kerr McGee") and others entered into an oil and gas lease with the United States Department of Interior, Minerals Management Service ("MMS") covering properties located off the coast of Cameron Parish, Louisiana, on the OCS. Production from the lease began diminishing at some point in the late 1980's. Kerr-McGee farmed out the lease to Senior G & A Operating Company, Inc. U.S.A. ("Senior"), which contracted with U.S. Turnkey Exploration, Inc. ("Turnkey") to drill a well on the property. Turnkey contracted, in turn, with several others to provide goods and services in connection with those drilling activities ("service providers"). The well was not successful. Turnkey did not pay many of these service providers, who then sought a lien against the property of Kerr-McGee and others. The lease had expired, however, and there was no production against which the lien might attach. The only properties against which the lien might have attached were certain structures and appurtenances formerly located at East Cameron Block 34 on the OCS that were owned by Kerr-McGee and others (the "East Cameron 34 Owners") (the "Structure"). In 1991, pursuant to order of MMS, the East Cameron 34 Owners contracted with Teledyne Movible Offshore, Inc. to remove the Structure from the lease and salvage it.

The East Cameron 34 Owners contend that the Structure had no net salvage value, and that they incurred substantial expense removing the Structure from the OCS. Contrarily, the lien claimants contend that the Structure had a substantial value, and that the East Cameron 34 Owners are liable to them for this substantial value of the Structure to the extent necessary to satisfy their lien claims against the Structure.

Case # 1 — Gardes Directional Drilling v. U.S. Turnkey Exploration

Gardes Directional Drilling ("Gardes") instituted a lawsuit in Louisiana's 38th Judicial District Court in Cameron Parish, Louisiana against Turnkey, Chevron U.S.A., Inc. ("Chevron"), Phillips Petroleum Company ("Phillips"), CNG Producing Company, Kerr-McGee, Felmont Oil Corporation ("Felmont"), Cabot Corporation ("Cabot"), and Case-Pomeroy Oil Corporation ("Case-Pomeroy") (collectively referred to as "defendants" or the "East Cameron 34 Owners") seeking a money judgment and recognition of its lien rights in the Structure which was formerly under lease to defendants. Defendants removed this action to the United States District Court for the Western District of Louisiana on May 23, 1989. Defendants, in their notice of removal, alleged that this court had subject matter jurisdiction over this action under 28 U.S.C. § 1332 (diversity of citizenship and amount in controversy exceeds $50,000.00). Additionally, defendants alleged that subject matter jurisdiction existed pursuant to 28 U.S.C. § 1331 (federal question), to wit:

XVI.
The above-described civil action is additionally one which arises out of or in connection with operations conducted on the Outer Continental Shelf which involve exploration, development, or production of the minerals, of the subsoil and seabed of the Outer Continental Shelf, or which involves rights to such minerals. Furthermore, Plaintiff's right to assert a contractual claim and a claim under Louisiana Revised Statutes 9:4861, et seq., against the lease, wells, equipment, production and other items located in or having a situs within federal offshore waters (i.e., in the Outer Continental Shelf area) is a matter arising under the laws of the United States because (a) the laws of the State of Louisiana do not, in and of themselves, apply in federal offshore waters (i.e., in the Outer Continental Shelf area) and (b) Plaintiff is only entitled to a contractual claim and a lien similar to that granted by such Louisiana laws only if such state laws are declared to be the laws of the United States in the Outer Continental Shelf area under Title 43, U.S.C. Section 1333(a)(2)(A). Therefore, this Court has original subject matter jurisdiction under the provisions of Title 43, U.S.C., Section 1349(b)(1) and Title 28, U.S.C., Section 1331, and is one which may be removed to this Court be Petitioners pursuant to the provisions of Title 28 U.S.C., Section 1441(b), without regard to the citizenship of the parties.

Case # 2 — L.A.J.F.P. Drilling v. Chevron U.S.A., Inc.

Simultaneously with the above proceedings, LAJFP instituted a lawsuit in Louisiana's 38th Judicial District Court in Cameron Parish, Louisiana against Chevron, Turnkey, Phillips, Kerr-McGee, Felmont, Cabot, Case-Pomeroy, Sonat Exploration Company ("Sonat"), Senior, Baxter Drilling and Exploration, Inc., and PSI, Inc. (collectively referred to as "defendants" or the "East Cameron 34 Owners") seeking recognition of its lien rights in the Structure. Defendants removed this action to the United States District Court for the Western District of Louisiana on July 10, 1989. Defendants, in their notice of removal, alleged that this court had subject matter jurisdiction over this action pursuant to 28 U.S.C. § 1331, to wit:

V.
The above-described civil action is one which arises out of or in connection with operations conducted on the Outer Continental Shelf which involve exploration, development, or production of the minerals, of the subsoil and seabed of the Outer Continental Shelf, or which involves rights to such minerals. Furthermore, Plaintiff's right to assert a claim under Louisiana Revised Statutes 9:4861, et seq., against the lease, wells, equipment, production and other items located in or having a situs within federal offshore waters (i.e., in the Outer Continental Shelf area) is a matter arising under the laws of the United States because (a) the laws of the State of Louisiana do not, in and of themselves, apply in federal offshore waters (i.e., in the Outer Continental Shelf area) and (b) Plaintiff is only entitled to a lien similar to that granted by such Louisiana laws only if such state laws are declared to be the laws of the United States in the Outer Continental Shelf area under 43 U.S.C. § 1333(a)(2)(A). Therefore, this Court has original jurisdiction under the provisions of 43 U.S.C. §§ 1333(a)(2)(A) and 1349(b)(1) and 28 U.S.C. § 1331, and is one which may be removed to this Court by Petitioners pursuant to the provisions of 28 U.S.C. Section 1441(b), without regard to the citizenship of the parties.
Case # 3 — Kerr McGee v. L.A.J.F.P. Drilling

While the above lawsuits were pending, Kerr McGee, Chevron, Phillips, Sonat, Felmont, Cabot, and Case-Pomeroy instituted an interpleader action naming LAJFP, Mars Services of Cameron, Inc., Ace, American Downhole Limited Partnership No. 1 ("American"), Western Atlas International, Inc., Aztec Rig Equipment, Inc., Coastal Inspection Service, Inc., Derrick Hammers, Inc., Delta Rental Service, Inc., Drilling. Gardes, L & L Oil Company, Liquid Drill, Inc., Marine, Milchem, Inc. dba Milpark Drilling...

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2 cases
  • Gardes Directional Drilling v. U.S. Turnkey Exploration Co.
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • November 5, 1996
    ...what a court at an earlier stage of this litigation described as "an apparent legal free-for-all." Gardes Directional Drilling v. U.S. Turnkey Exploration, 815 F.Supp. 956, 960 (W.D.La.1993). Among the counterclaims was the assertion that the Owners wrongfully disposed of the lien property.......
  • In re White Tail Oilfield Servs., LLC
    • United States
    • U.S. District Court — Eastern District of Louisiana
    • July 19, 2012
    ...Analysis "Federal offshore waters" are those "in the Outer Continental Shelf area" ("OCS"). Gardes Directional Drilling v. U.S. Turnkey Exploration Inc., 815 F.Supp. 956 (W.D.La. 1993); See also English v. Apache Corp., 2011 WL 3352011 (E.D.La. 2011) (differentiating between state waters an......

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