Pipeline companies file for rehearing in pipe relocation case

March 17, 2004
More than 20 pipeline companies filed a motion Monday for rehearing en banc regarding the recent Fifth Circuit Court of Appeals decision that they must bear the costs for removing and relocating pipelines affected by the Port of Houston Authority's joint project with the US Army Corps of Engineers to deepen and widen the Houston Ship Channel.

By OGJ editors

HOUSTON, Mar. 17 -- More than 20 pipeline companies filed a motion Monday for rehearing en banc regarding the recent Fifth Circuit Court of Appeals decision that they must bear the costs for removing and relocating pipelines affected by the Port of Houston Authority's joint project with the US Army Corps of Engineers to deepen and widen the Houston Ship Channel.

"We strongly believe that both federal and state law require reimbursement," said Denis Calabrese, spokesman for the pipeline companies.

In 2002, US District Judge Lynn N. Hughes had ruled that the Port is responsible under both federal and Texas law for 100% of the pipeline relocation costs, which total $70 million for 70 pipelines' relocation. The Port appealed this ruling to the Fifth Circuit, which reversed the decision Jan. 30 (OGJ Online, Feb. 6, 2004).

Plaintiffs in this lawsuit now include: Air Liquide America Corp.; Chevron Chemical Co. LLC; Chevron Pipe Line Co.; Dynegy Midstream Services LP; EGP Fuels Co.; ExxonMobil Pipeline Co.; Florida Gas Transmission Co.; Houston Pipe Line Co. LP; HSC Pipeline Partnership LP; Seadrift Pipeline Corp.; Shell Pipeline Co. LP; TEPPCO Crude Oil LLC; TE Products Pipeline Co. LP; Texas Eastern Transmission Corp.; UCAR Pipeline Inc.; Black Marlin Pipeline Co.; Tejas South Pipeline Partnership; and Tejas Ship Channel LLC.