1Jun
Midstream Update: Eastland Court of Appeals Extends Denbury Test to Crude Petroleum Pipelines

Federal Court Examines Jurisdictional Reach Over Outer Continental Shelfs

Sam V. Laborde Marine, L.L.C., Civil Action No. H-19-4041, 2020 U.S. Dist. LEXIS 1585, (S.D. Tex. 2020)

Following removal from State Court, the Plaintiff challenged the federal trial court’s jurisdiction over the Plaintiff’s personal injury claim. Ultimately, the district court concluded that it had jurisdiction under the Outer Continental Shelf Lands Act (“OCSLA”), which grants federal courts jurisdiction over certain disputes arising out of conduct on the Outer Continental Shelf (“OCS”), codified at 43 U.S.C. 1331, et seq.

At the time of his injury, the Plaintiff was working as an inspector on a platform located on the OCS. However, the injury occurred while the Plaintiff was walking down the stairs of a nearby vessel where Plaintiff was being housed during his employment. The Plaintiff claimed that the OCSLA did not apply to his claim because it arose on the vessel, rather than the platform located on the OCS. The Plaintiff claimed that for the OCSLA to apply, his injury must have occurred while he was on a “proper situs.” In other words, the injury had to have occurred on the platform and the fact that it occurred on the vessel precluded federal court jurisdiction.

The district court rejected the Plaintiff’s argument, concluding that the Fifth Circuit has “explicitly rejected the argument that OCSLA jurisdiction includes a situs requirement.” The court noted that there is a perceived conflict between the Fifth Circuit’s 2013 opinion in Barker v. Hercules, which appears to refer to a situs requirement, and the Fifth Circuit’s 2014 opinion in In re Deepwater Horizon, which appears to reject the inclusion of a situs requirement. Rather, In re Deepwater Horizon applied a “but for” test, looking only at whether the facts underlying the action would not have occurred but for an operation on the OCS. The district court harmonized the two Fifth Circuit opinions by concluding that Barker’s “situs” element applied only when determining whether OCSLA’s choice-of-law rules would apply. When the question is focused on jurisdiction, then Deepwater Horizon’s broader “but for” test would apply.

The district court applied the “but for” test and concluded that the Plaintiff’s injuries would not have occurred but for his employment as an inspector on a platform located on the OCS. Accordingly, the district court concluded that it was vested with jurisdiction.

Chris Halgren
Chris represents clients in a wide variety of litigation matters. Chris strives to identify an aggressive, yet practical approach to accomplish his clients' needs, taking into account the particular legal and business issues presented. With horizontal drilling transforming the energy landscape across Texas, Chris developed an emphasis on oil and gas related matters. He has represented operators, non-operators, and landowners in a variety of disputes ranging from seismic misappropriation, leasing issues, royalty disputes, title litigation, lease termination, midstream accounting, and other related contractual disputes. Chris has been selected to the Texas Super Lawyers Rising Stars list, a Thomson Reuters service, (2014-2019).
Chris Halgren
© Copyright 2012-2018, McGinnis Lochridge LLP. All Rights Reserved. DISCLAIMER: The information in this article is for general information purposes only. This article should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading this article does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided in this article.
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