# Opposition Brief — Union Texas Petroleum Corp. v. State Service Co.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1990
- **Citation:** 498 U.S. 848

## Text

No. 90-60 |

_ eels —
In The - ane

Supreme Court of the United States* _ |

October Term, 1989
cnquindinpenstincentetiinenatints —_q—___- —ee
UNION TEXAS PETROLEUM CORPORATION, AGIP

PETROLEUM COMPANY and MINATOME
CORPORATION,

Petitioners,
versus

P LT ENGINEERING, INC., STATE SERVICE
COMPANY, INC., POWER WELL SERVICE, INC.,
GULF ISLAND-IV, BROWN & ROOT USA,
INC. and SUB SEA INTERNATIONAL, INC.,

Respondents.

— —- a

Petition for Writ of Certiorari
to the United States Court of Appeals
for the Fifth Circuit

aapneeenemannmeneanmm ----@— -- ee

BRIEF IN OPPOSITION OF RESPONDENT,
STATE SERVICE COMPANY, INC.

——_—_______—_____@___—_

JupiTH A. KAUFMAN
Lowe, STEIN, HOFFMAN
A.tiweiss & HAUVER
2450 Poydras Center
650 Poydras Street
New Orleans, Louisiana 70130
Telephone: (504) 581-2450

August 35, 1990

COCKLE LAW BRIEF PRINTING CO., (800) 225-6964
OR CALL COLLECT (402) 242-2831

QUESTIONS PRESENTED

Whether state law, as the surrogate federal law under
Section 4 of the Outer Continental Shelf Lands Act, 43
U.S.C. § 1333, applies to contracts for construction of
a pipeline on the outer Continental Shelf.

Whether Section 4 of the Outer Continental Shelf
Lands Act, 43 U.S.C. § 1333, supercedes a state law’s
choice of law rule.

Whether Section 4 of the Outer Continental Shelf
Lands Act, 43 U.S.C. § 1333, operates to extend the
boundaries of the State of Louisiana to the outer
margin of the outer Continental Shelf for purposes of
determining in which parish a lien should be
recorded under the Louisiana Oil Well Lien Act.

ii

TABLE OF CONTENTS

Page
OCUESTIONS PRESENTED oo cic s cise scesennnes i
pei RGs Sas). )) Serr Terr ST ii
TABLE COR PU TERA IIe eS oa ei ace an senss iil
STATEMENT OF THE CADE... 0.5 cick ccc vccasas 1
REASONS FOR DENYING WRIT ...............55: 4
Pio d) | rere er errr err rere TL ey 7

THE FIFTH CIRCUIT’S DECISION FOLLOWED
THIS COURT’S REASONING IN HERB’S WELD-
ING AND APPLIED THE PROPER ANALYSIS
WHEN IT HELD THAT CONTRACTS FOR THE
CONSTRUCTION OF A,PIPELINE ON THE
OUTER CONTINENTAL SHELF ARE GOV-
2 ok fs oe © rrr errr rrr rr ree 7

THE FIFTH CIRCUIT’S DECISION BELOW FOL-
LOWS THIS COURT’S PRIOR RULING THAT
THE OUTER CONTINENTAL SHELF LANDS
ACT SUPERCEDES A STATE’S CHOICE OF
Fg eer Tete eee re 13

THE FIFTH CIRCUIT’S DECISION BELOW
CORRECTLY INTERPRETS SECTION 4 OF
OCSLA, 43 U.S.C. § 1333, WHICH OPERATES
TO EXTEND THE BOUNDARIES OF THE STATE
OF LOUISIANA TO THE OUTER CONTINEN-
TAL SHELF FOR PURPOSES OF DETERMINING
IN WHICH PARISH A LIEN SHOULD BE
RECORDED UNDER THE LOUISIANA OIL
i RT Oe ty ee reeeeTeT Terre ee rrr 14

ee ea 8 | err eee rere ere rr 17

iii
TABLE OF AUTHORITIES
Page
CASEs:
Chevron Oil Co. v. Huson, 404 U.S. 97 (1971)...7, 13, 16
Corbitt v. Diamond M. Drilling Co., 654 F.2d 329

ea G Geese ken noes esacessvcecass 5
Gulf Offshore Co. v. Mobil Oil Corp., 453 U.S. 473

EE UR SECM hens esses escsasences 7, 3, 16
Ferb’s Welding, Inc. v. Gray, 470 U.S. 414 (1985) . passim
Kossick v. United Fruit Co., 365 U.S. 731 (1961)........ 9
Laredo Offshore Constructors, Inc. v. Hunt Oil Co.,

yam eee taeo qoem Cir. 1965)................ mm 2% Ta
Lewis v. Glendel Drilling Co., 898 F.2d 1083 (5th Cir.

SCG R yaa G sae ayes ctr cvcscesasceccee 6, 10
Offshore Logistics, Inc. v. Tallentire, 477 U.S. 207

TSG Sheek sas see ckccccavccsesnsss 6, 10
Pippen v. Shell Oil Co., 661 F.2d 378 (5th Cir. 1981)..... 5
Rodrigue v. Aetna Casualty and Surety Co., 395 U.S.

Senne 6, 7, 10, 13, 14
Theriot v. Bay Drilling Corp., 783 F.2d 527 (5th Cir.

eRe ashy ebb n Shea s eee eeseaciecccess 5, 6
Thurmond v. Delta Well Surveyors, 836 F.2d 952 (5th

ee Ca si Sw kas sce secncrcsaccs » 6
Union Texas Petroleum v. PLT Engineering, Inc., 895

F.2d 1043 (Sth Cir. 1990)......... it PRA Tee > %, 12
STATUTES:
eee eh sacs 6 bce ss cccessccccesss 3

SOT EL ETE TEETER TEE 15

TABLE OF AUTHORITIES - Continued

Page
OF Rs I BOE cco shee kaw ees ke ess nue eee eeeees-ees 3
2 ae eh . Serer rere sre ee 7, 14, 15
Br EPs OP ON as cc ccesensnseeceucsbacsusuancesehess 8

OTHER AUTHORITIES:

Conference Report No. 1031, 83d Cong., First Ses-
oR tee re eer rrr ere ee 7, 15

No. 90-60

vr

In The

Supreme Court of the United States
October Term, 1989

a
vv

UNION TEXAS PETROLEUM CORPORATION, AGIP
PETROLEUM COMPANY and MINATOME
CORPORATION,

Petitioners,
versus

P L T ENGINEERING, INC., STATE SERVICE
COMPANY, INC., POWER WELL SERVICE, INC.,
GULF ISLAND-IV, BROWN & ROOT USA,
INC. and SUB SEA INTERNATIONAL, INC.,

Respondents.

»
sd

Petition for Writ of Certiorari
to the United States Court of Appeals
for the Fifth Circuit

A.
—_

BRIEF IN OPPOSITION OF RESPONDENT7,
STATE SERVICE COMPANY, INC.

-%
4

STATEMENT OF THE CASE

Union Texas Petroleum Corporation (hereafter
“UTP”), AGIP Petroleum Company, Inc. (hereinafter

“AGIP”) and Minatome Corporation (hereinafter “Min-
atome”) own a leasehold on which the pipeline in ques-
tion was constructed. This leasehold is located adjacent to
the State of Louisiana in Vermillion block 237 on the
federal outer Continental Shelf. UTP was designated as
the operator of the oil and gas wells located or to be
located on the lease. The owners, UTP, AGIP and Min-
atome, initiated a project to construct a gas transportation
system to enable them to transfer gas produced on the
lease to a 36 inch blue water pipeline owned by Columbia
Gas Company.

To that end, UTP entered into a contract with PLT
Engineering Company, Inc. (“PLT”) for the design, fabri-
cation and installation of a gas transportation system.
PLT contracted with State Service Company, Inc. (“State
Service”) to furnish materials and/or to provide services
to be used in the construction, operation and/or repair of
the gas transportation system.' PLT also contracted with
Brown & Root U.S.A., Inc. (“Brown & Root”), and Sub Sea
International, Inc. (“Sub Sea”). PLT entered into these
various subcontracts in order to achieve its principal
obligation under its contract with UTP: to design, fabri-
cate and install an underwater gas transportation line
from a platform owned by UTP, AGIP and Minatome over
the outer Continental Shelf to a side tap in the blue water
pipeline.

In order to perform its obligations, State Service con-
tracted with Power Well Service, Inc., (“Power Well”).

1 Pursuant to Rule 28.1 of the Rules of the Supreme Court,
State Service informs the Court that there are no parent com-
panies, subsidiaries or affiliates of State Service.

Power Well provided State Service with . vessel, the
GULF ISLAND IV, which was used to assist State Service
in performing its activities on the ocean floor.

State Service’s principal obligation on the project,
much akin to PLT’s obligation, was to fabricate and install
the side tap connecting UTP’s production platform to its
twelve inch pipeline, all of which were located on federal
block area 237 Vermillion, and fabricate and install the
hot tap assembly tie-in to the Columbia Gas Company
pipeline located on federal block area 225 Vermillion.
State Service also performed extra work for PLT on PLT’s
and UTP’s request. The extra work primarily involved
additional excavation to bury the pipeline.

With the services of State Service and the other sub-
contractors, PLT successfully completed the construction
and installation of the pipeline. Subsequently, UTP
learned that PLT had not paid its subcontractors. In
accordance with the contract provision between UTP and
PLT, UTP withheld $420,045.59 from the amount due
under the contract and then instituted an interpleader
action under Fed.R.Civ.P. 22. State Service answered the
complaint and filed its counterclaim asserting a lien pur-
suant to the Louisiana Oil Well Lien Act, LSA-R.S.
§ 9:4861, et seq. (“LOWLA”).

After cross motions for summary judgment, the dis-
trict court held that: (1) the Outer Continental Shelf
Lands Act, 43 U.S.C. 1331 et seq. (hereinafter “OCSLA”)
applied because the activities involved were not tradi-
tionally maritime, therefore, federal admiralty law was
not applicable; (2) the choice of law provisions in the

subcontracts were unenforceable; (3) LOWLA was appli-
cable as the surrogate federal law through OCSLA; and
(4) the recordation requirements for the lien pursuant to
Louisiana Law were met. The Fifth Circuit Court of
Appeals, for somewhat differeat reasons, affirmed the
holding of the district court. Thereafter, UTP petitioned
this Court for review of that decision.

»
_

REASONS FOR DENYING WRIT

1. The decision of the Fifth Circuit Court of Appeals
in this action does not conflict with a decision of any
other circuit court of appeals. The matter presently before
this Court involves only decisions arising out of the Fifth
Circuit. Apparently, there may be a conflict in the Fifth
Circuit with respect to some issues raised in UTP’s Peti-
tion for Writ of Certiorari. The Fifth Circuit, however, has
not yet had the opportunity to resolve the apparent con-
flict. The matter is currently before the Fifth Circuit for
consideration en banc.

The apparent conflict within the Fifth Circuit stems
from decisions from the court which preceded this
Court’s decision in Herb’s Welding, Inc. v. Gray, 470 U.S
414 (1985). Herb’s Welding limited the Fifth Circuit's
expansive view of maritime law and held that a worker
performing the tasks of building and maintaining pipes
and platforms on the outer Continental Shelf was not
engaged in maritime employment.

Some Fifth Circuit decisions before Herb’s Welding
have held that contracts for offshore drilling and mineral

operations from a vessel are maritime in nature. See Pip-
pen v. Shell Oil Co., 661 F.2d 378 (5th Cir. 1981); and Corbitt
v. Diamond M. Drilling Co., 654 F.2d 329 (5th Cir 1981).
Although decided subsequent to Herb’s Welding, Theriot v
Bay Drilling Corp., 783 F.2d 527 (5th Cir. 1986), also held
that certain contracts for mineral exploration conducted
from a vessel are maritime. Theriot, however, relied exch-
sively upon cases which predate Herb’s Welding.’

Other decisions, however, have looked beyond the
mere use of a vessel in mineral exploration to determine
whether the primary activity is maritime in nature. Those
decisions focus on the principal obligation of the contract
and have held that where the contract calls for construc-
tion and services peculiar to the oi] and gas industry, the
contract is nonmaritime even though the contract contem-
plates the use of instruments of admiralty. Consequently,
state law, through OCSLA, applies. See Thurmond v. Delta
Well Surveyors, 836 F.2d 952, 955 (Sth Cir. 1988) and Laredu
Offshore Constructors, Inc. v. Hunt Oil Co., 754 F.2d 1223,
1231-1232 (Sth Cir. 1985). The decision below follows the
holdings of Thurmond and Laredo and employs the “prin-
cipal obligation” test of those cases. The decision also
follows the reasoning of Herb’s Welding and precludes the
application of maritime law when the work performed on
the outer Continental Shelf involves the construction of a
pipeline.

2 In addition to relying on cases which predate Herb’s
Welding, Theriot is clearly distinguishable on its facts. As the
Fifth Circuit stated, “since no drilling on navigable waters
from a vessel is involved here, Theriot is not controlling.”
Union Texas Petroleum v. PLT Engineering, Inc., 895 F.2d 1043,
1049 (Sth Cir. 1990).

Lewis v. Glendel Drilling Co., 898 F.2d 1083 (5th Cir.
1990), a case subsequent to the decision below, called into
question the validity of Theriot and noted the disparity
among the cases which have addressed issues raised in
UTP’s writ. Although the Lewis court recognized that the
Thurmond view that a movable offshore oil and gas rig,
moored and engaged in exploration or production, is not
a vessel and thus does not involve maritime law is the
more realistic view, the Lewis court nonetheless followed
the Theriot holding. Id. at 1086-1087. Because of the con-
flict in the decisions in the Fifth Circuit on this matter, the
Lewis court suggested that the matter should be reviewed
and decided by the court en banc. As noted in UiP’s
Application for Extension of Time to File Petition for Writ
of Certiorari, the Lewis decision, which involves issues
common to the instant case, is pending before the Fifth
Circuit on UTP’s request for a hearing en banc. Therefore,
because the issues raised in UTP’s writ involve only a
conflict within the Fifth Circuit, and because those issues
are presently before the Fifth Circuit for consideration en
banc, UTP’s request for review by this Court should be
denied. The Fifth Circuit should be given an opportunity
to do its own housecleaning before this Court should
intervene. Moreover, UTP should have asked the Fifth
Circuit for a rehearing en banc in this case.

2. The decision of the Fifth Circuit Court of Appeals
in this action does not conflict with prior decisions by
this Court in Rodrigue v. Aetna Casualty and Surety Co., 395
U.S. 352 (1969); Herb’s Welding, 470 U.S. 414; and Offshore
Logistics, Inc. v. Tallentire, 477 U.S. 207 (1986). Those cases
have analyzed the application of OCSLA and have held
that activities performed on the seabed, the subsoil and

the structures on the outer Continental Shelf are gov-
erned by OCSLA. Certainly, construction of a pipeline
necessarily requires work on the seabed and subsoil.
Pipelines do not float on the water.

3. The decision below follows this Court’s prior rul-
ings in Chevron Oil Co. v. Huson, 404 U.S. 97 (1971) and
Gulf Offshore Co. v. Mobil Oil Corp., 453 U.S. 473 (1981)
which held that OCSLA supercedes a state’s choice of law
rules. Therefore, the Fifth Circuit herein correctly held
that the maritime choice of law provision in the contracts
was unenforceable.

4. The Fifth Circuit’s holding that the parishes adja-
cent to the outer Continental Shelf are the proper par-
ishes in which to record a lien under LOWLA is
consistent with OCSLA, 43 U.S.C. § 1333 and the intent of
Congress to extend the boundaries of the state seaward to
the outer margin of the outer Continental Shelf in order
to determine which state law applies to the subsoil, sea-
bed and fixed structures of the outer Continental Shelf.
Con. Rep. No. 1031, 83 Cong. First Session 2 (1953).

,%
vw

ARGUMENT

THE FIFTH CIRCUIT’S DECISION FOLLOWED THIS
COURT’S REASONING IN HERB’S WELDING AND
APPLIED THE PROPER ANALYSIS WHEN IT HELD
THAT CONTRACTS FOR THE CONSTRUCTION OFA
PIPELINE ON THE OUTER CONTINENTAL SHELF
ARE GOVERNED BY OCSLA.

This Court stated the purpose of OCSLA in Rodrigue
as follows:

The purpose of the Lands Act was to define
a body of law applicable to the seabed, the
subsoil, and the fixed structures . . . on the outer
Continental Shelf. That this law was to be fed-
eral law of the United States, applying state law
only as federal law and then only when not
inconsistent with applicable federal law, is made
clear by the language of the Act.

395 U.S. at 355-56.

In Herb’s Welding, this Court criticized the Fifth Cir-
cuit’s “expansive view of maritime employment” and
reversed the Fifth Circuit, finding that

[t]he history of the Lands Act at the very least
forecloses the Court of Appeals’ holding that
offshore drilling is a maritime activity and that
any task essential thereto is maritime employ-
ment for LHWCA purposes.

470 U.S. at 422.3 This Court also found in Herb’s Welding
that there is nothing inherently maritime about the con-
struction and maintenance of pipelines and stated that
those tasks “are also performed on land, and their nature
is not significantly altered by the marine environment,
particularly since exploration and development of the
Continental Shelf are not themselves maritime com-
merce.” 470 U.S. at 425. The decision below follows the
reasoning and principles of Herb’s Welding.

3 Herb’s Welding involved the application of the Long-
shoremen’s and Harborworkers’ Compensation Act (LHWCA),
33 U.S.C. §§ 901, et seq. As the court below noted, the threshold
question under both LHWCA and OCSLA is whether the dis-
pute arises out of traditional maritime activity.

The Fifth Circuit herein stated that in order to apply
state law as the surrogate federal law under OCSLA,
three conditions must be met: (1) the controversy must
arise on an OCSLA location (i.e., the subsoil, seabed, or
artificial structures permanently or temporarily attached
thereto); (2) federal maritime law must not apply of its
own force; and, (3) the state law must not be inconsistent
with federal law. Union Texas Petroleum v. PLT Engineering,
Inc., 895 F.2d 1043, 1047 (5th Cir. 1990). The Fifth Circuit
found that all of those conditions were met in the present
case. In fact, UTP admits that the controversy arises on an
OCSLA location and concedes for the purpose of argu-
ment that the state law at issue here is not inconsistent
with any federal law. UTP, however, contends that the
activity conducted on the outer Continental Shelf was
maritime. Thus, the only question which remains is
whether the contracts at issue are maritime in that they
“relate[s] to ships and vessels, masters and mariners, as
agents of commerce... .” Kossick v. United Fruit Co., 365
U.S. 731, 736 (1961), citing I Benedict, Admiralty 131. As
the court below correctly held, the contracts are not mar-
itime.

Each contract involved a common goal: the construc-
tion and installation of a pipeline located in its entirety
on the outer Continental Shelf. Surely, as this Court has
stated, such an activity is not inherently a maritime activ-
ity. See Herb’s Welding, 470 U.S. at 425. Each party was to
perform various services in connection with the construc-
tion of that pipeline. While UTP basically admits at page
16 of its Petition for Writ of Certiorari that the installation
of the pipeline on the outer Continental Shelf is not
maritime, UTP nonetheless takes the position that

10

because such activity utilizes vessels and divers to assist
in the project that that, in and of itself, removes the
activity from the realm of OCSLA.

UTP’s reasoning is illogical. Under UTP’s reasoning,
OCSLA would never apply because in order to reacn the
ocean floor one must necessarily use divers and/or ves-
sels. UTP’s argument precludes application of OCSLA to
activities performed on the ocean floor and is in direct
confiict with decisions of this Court which have already
endorsed the Congressional mandate that OCSLA applies
to activities performed on the seabed, subsoil and the
fixed structures on the outer Continental Shelf. Herb’s
Welding, 470 U.S. 414, Rodrigue, 395 U.S. 352, Tallentire,
477 US. 207.

UTP also stresses that a divergent line of authority
has arisen as to whether mineral exploration activity on
the outer Continental Shelf is a maritime transaction. As
mentioned, that divergent line of authority may only
appear within the Fifth Circuit, and the issue is presently
pending before the Fifth Circuit for consideration en banc.
The Fifth Circuit may or may not eliminate any con-
fusion. Moreover, as the decision below notes, those lines
of authorities which hold that drilling operations con-
ducted from a vessel are maritime generally predate
Herb’s Welding.4

4 Although Lewis, 898 F.2d 1083, is subsequent to Herb’s
Welding, the Lewis court recognized that Herb’s Welding may
affect the validity of those holdings and specifically suggested
that the matter should be considered en banc.

11

The Fifth Circuit herein and in Laredo, 754 F.2d 1223,
followed this Court’s reasoning in Herb’s Welding. Laredo
addressed essentially the same arguments which UTP
sets forth here. There, Laredo argued that because the
contract for the construction of a well platform on the
outer Continental Shelf required the use of vessels and
seamen, the contract was maritime and OCSLA did not
apply. The court, however, held that:

The contract involved here . . . did more than
charge Laredo with the responsibility of carry-
ing workers and supplies to the well site.
Laredo’s principal obligation under the contract
was the construction of a stationary platform,
and, as Laredo conceded at oral argument, it is
the alleged breach of this contract that gave rise
to the instant action. While the contract no
doubt contemplated the hiring of vessels and
seamen to build the structure, the subject of this
case has no direct relationship with these tradi-
tional subjects of maritime law. It is fundamen-
tal that the mere inclusion of maritime
obligations in a mixed contract does not, with-
out more, bring nonmaritime obligations within
the pale of admiralty law. That the contract con-
templated in part the use of instruments of
admiralty, therefore, is not sufficient to oust
OCSLA - adopted state law in this case.

Id. at 1231-32.

The contracts involved in the present action pertain
to the construction of a pipeline. As in Laredo, it is the
breach of those contracts which gave rise to the instant
controversy. As this Court noted in Herb’s Welding, the
construction of a pipeline does not render that activity
maritime merely because it occurred in a marine environ-
ment. 470 U.S. at 425. State Service actually performed

12

work on the ocean floor and near a riser attached to the
UTP platform. Those activities took place on OCSLA
locations. Under a plain reading of the Act, OCSLA
applies. The fact that State Service had to use divers to
get to the bottom of the sea does not transform the
activity into a traditional maritime activity, precluding
the application of OCSLA. Union Texas Petroleum, 895 F.2d
1043; Laredo, 754 F.2d 1223.

UTP, however, seems to believe that it is significant
that the contract in Laredo called for a single contract to
construct a platform, whereas the present matter involves
various subcontracts to construct the pipeline. If PLT was
able to construct the pipeline without the services of
others, then it would have performed the same work as
State Service and the other subcontractors; PLT would
have also had to utilize vessels and divers. Would UTP
have this Court hold that a contract for construction on
the outer Continental Shelf is governed by OCSLA only
when there are no subcontractors involved? To argue that
the Court should analyze each subcontract individually
as to the nature of the activity involved in each sub.
contract would only serve to add more confusion in the
law. Under UTP’s argument, the services performed by
State Service would be governed by OCSLA only while
its workers were on the ocean floor. Any matter that
involved services beyond that would be governed by
maritime law. This approach makes no sense and would
serve to create mass confusion. As the court below found,
the principal obligation of PLT and the subcontractors
was to build the pipeline and connect it to UTP’s plat-
form and transmission line. 895 F.2d at 1049. In line with
Herb’s Welding, the court concluded that such activities

13

were not traditionally maritime and thus maritime law
would not apply.

Because the decision below merely applies the princi-
ples of Herb’s Welding in concluding that the construction
of a pipeline on the outer Continental Shelf is not a
maritime activity, the decision does not conflict with
prior decisions of this Court in analyzing the application
of OCSLA. Moreover, because there is no conflict among
the various circuits on this issue and because the only
conflict which might exist is within the Fifth Circuit
where a consideration en banc is currently pending, UTP’s
writ should be denied.

THE FIFTH CIRCUIT’S DECISION BELOW FOLLOWS
THIS COURT’S PRIOR RULING THAT OCSLA
SUPERCEDES A STATE’S CHOICE OF LAW RULES

The Fifth Circuit’s holding that OCSLA’s mandated
choice of law provision requires the application of the
law of the adjacent state even in the presence of a choice
of law provision in the contract to the contrary is not at
variance with prior statements by this Court. This issue
has been put to rest by this Court in Huson, 404 U.S. 97,
and Gulf Offshore, 453 U.S. 473. In Gulf Offshore, this Court
succinctly stated that “OCSLA does supercede the normal
choice of law rules that the forum would apply.” 453 U.S.
at 482 n.8. To hold otherwise and adopt the argument set
forth by UTP that the maritime choice of law provision
should apply would only serve to “subvert the congres-
sional intent documented in Rodrigue, . . . that admiralty
doctrine should not apply under the Lands Act.” Huson,
404 U.S. at 104.

14

Thus, the holding of the Fifth Circuit is not only
consistent with prior decisions of this Court, but is in line
with the intent of Congress to create a body of law on the
outer Continental Shelf for which maritime law was not
suited. Consequently, even under Louisiana conflict of
law principles, the party’s stipulation as to the choice of
law to govern the contract must not be given effect
because there is jurisprudential law from this Court and
statutory law stemming from OCSLA which requires the
court to refuse to honor the contract’s choice of law
provision. This Court must take note that there was no
contractual choice of law provision between UTP and
State Service: no contractual relationship between the two
existed. Therefore, the decision below does not raise any
important question which conflicts with prior decisions
of .his Court with respect to the mandated choice of law
provisions of OCSLA.

THE FIFTH CIRCUIT’S DECISION BELOW COR-
RECTLY INTERPRETS SECTION 4 OF OCSLA, 43
U.S.C. § 1333, WHICH OPERATES TO EXTEND THE
ROUNDARIES OF THE STATE OF LOUISIANA TO
THE OUTER CONTINENTAL SHELF FOR PURPOSES
OF DETERMINING IN WHICH PARISH A LIEN
SHOULD BE RECORDED UNDER LOWLA.

Because federal laws are inadequate to cope with the
full range of potential legal problems which may arise on
the outer Continental Shelf, and rather than create a new
body of federal law, Congress chose to borrow the law of
the adjacent states to fill in the gaps of federal law. See
Rodrigue, 395 U.S. at 357-358. In determining which state
laws would be adopted as the federal law on the outer
Continental Shelf, Congress adopted the state laws “for

15

the area of the shelf that would be in the boundaries of
the state if such boundaries were extended seaward to the
outer margin of the outer shelf.” Con. Rep. No. 1031, 83d
Cong. First Session, 2 (1953).

Louisiana Law is the surrogate federal law in this
matter pursuant to 43 U.S.C. Section 1333(a)(2)(A) as “if
its boundaries were extended seaward to the outer mar-
gin of the outer Continental Shelf”. LOWLA requires
recordation of a lien in the parish where the property is
located in order to preserve the privilege granted by the
Act. Because UTP’s property is located in federal terri-
tory, this restriction interferes with the application of
state law on federal land; therefore, the Fifth Circuit
properly extended the boundaries of Vermillion Parish to
the outer margin of the outer Continental Shelf in order
to apply Louisiana Law as the surrogate federal law to
the work performed by State Service. This decision is not
only consistent with the construction of OCSLA, but is
also consistent with Louisiana state law at LSA-R.S. 49:6,
which provides that:

the gulfward boundary of all said coastal par-

ishes extend coextensively with the gulfward
boundary of the State of Louisiana.

The Fifth Circuit’s decision does not constitute judi-
cial legislation; rather, the decision logically interprets
OCSLA and the Louisiana state law in order to determine
the appropriate parish in which to file a lien for work
performed on the outer Continental Shelf. UTP’s position
that a lien cannot be perfected for work performed on the
outer Continental Shelf would result in denying any con-
tractor or subcontractor a lien in any construction con-
tract on the outer Continental Shelf. It would be

16

anomalous to deny a lien to State Service when the prin-
cipal purpose of adopting state law under OCSLA was to
protect those, like State Service, who provide labor, ser-
vices, or materials on the outer Continental Shelf. See, e.g.
Huson, 404 U.S. at 103-04. The Fifth Circuit recognized
this anomaly and filled the gap that exists in the law. This
reconciliation was reasonable to implement the mandate
of Congress which requires state law to apply to work
performed on the outer Continental Shelf.

Furthermore, contrary to UTP’s contention, this
extension of the boundaries of the State of Louisiana was
not specifically rejected by Congress. As in Gulf Offshore,
453 U.S. 473, UTP’s argument confuses the political juris-
diction of a state with its judicial jurisdiction. Section
1333(a)(3) addresses the geographical boundaries of a
state because Congress’ primary focus in enacting
OCSLA was to assure federal control over the shelf and
its resources. The language was intended to make it clear
that the adoption of state law could not be a basis for a
State to make a claim to participate in the administration
of or revenues from areas outside the State’s boundaries.
The language of the provision does not refer to causes of
action by a party under state law. Id. at 482.

The present matter involves judicial jurisdiction: the
operation of state law by extending the boundaries of the
parishes of the State of Louisiana to the outer margin of
the outer Continental Shelf in order to apply state law to
determine in which parish a lien should be filed pursuant
to LOWLA. Thus, because the decision below is consis-
tent with OCSLA and state law, consideration by this
Court is unwarranted and UTP’s writ for certiorari
should be denied.

*

17

CONCLUSION

Petitioners have failed to show that the decision of
the Fifth Circuit is in conflict with the decisions of this
Court which have analyzed and addressed the applica-
tion of OCSLA. Moreover, petitioners have failed to show
that the decision below is in conflict with a decision from
any other circuit court of appeals. If any conflict exists, it
may exist within the Fifth Circuit where some of the
issues raised in petitioner’s writ of certiorari are pres-
ently before the Fifth Circuit for consideration en banc.
The Fifth Circuit may resolve these issues. Consequently,
petitioners have failed to demonstrate that their writ of
certiorari is warranted and therefore, it should be denied.

Respectfully submitted,

MitcHet. J. HorrMAN*

JupirH A. KAUFMAN

Lowe, STEIN, HOFFMAN,
Attweiss & HAUVER

2450 Poydras Center

650 Poydras Street

New Orleans, Louisiana 70130

Telephone: (504) 581-2450

Attorneys for Respondent
State Service Company, Inc.

* Counsel of Record

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385020_1804%3A2. Public record. Not legal advice.
