# Petition for Writ of Certiorari — Stolt Offshore Inc. v. Science Applications International Corp.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2001
- **Citation:** 531 U.S. 1078

## Text

Supreme Court, U.S.
FILED

00 812 NOV 162000

No. 00-
OFFICE OF THE CLERK
IN THE
Supreme Court of the United States

STOLT OFFSHORE INC. and
STOLT COMEX SEAWAY HOLDINGS INC.,

Petitioners,

V.

SCIENCE APPLICATIONS
INTERNATIONAL CORPORATION,

Respondent.

On PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

PETITION FOR A WRIT OF CERTIORARI

RALPH E. KRAFT
Counsel of Record
CHARLES A. MOUTON
JEAN ANN BILLEAUD
Preis, KRAFT & Roy
Attorneys for Petitioners
Versailles Centré
Suite 400
102 Versailles Boulevard
Lafayette, Louisiana 70509
(337) 237-6062

163395 @ Counsel! Press LLC
(800) 274-3321 + (800) 350-6859

lo Ape

i
QUESTIONS PRESENTED FOR REVIEW

Whether the ruling and Mandate of the United States
Court of Appeals for the Fifth Circuit, holding State
law claims which pertain to work performed on the
Outer Continental Shelf, while governed by the Outer
Continental Shelf Lands Act and which become Federal law
by application of the Outer Continental Shelf Lands Act
surrogate law mandate, are deemed to not “arise under”
the laws of the United States to sustain a federal question
subject matter jurisdiction removal action, and which conflict
with controlling jurisprudence of this Honorable Court and
a prior decision of the United States Court of Appeals for
the Fifth Circuit, present compelling reasons for review by
Writ of Certiorari.

Whether the ruling and Mandate of the United States
Court of Appeals for the Fifth Circuit, which permit remand
to State Court of a civil action properly removed under
original federal question subject matter jurisdiction
predicated solely on concurrent State and Federal Court
jurisdiction, thereby standing in conflict with a decision of
the United States Court of Appeals for the Eighth Circuit,
and which issue is res nova with this Honorable Court,
present compelling reasons for review by Writ of Certiorari.

i

STATEMENT PURSUANT TO RULE 29.6

Petitioner Stolt Offshore Inc., formerly known as Stolt
Comex Seaway Inc., is wholly owned by Stolt Comex
Seaway Holdings Inc. Petitioner Stolt Comex Seaway
Holdings Inc. is wholly owned by Stolt Comex Seaway B.V..,
a Netherlands corporation.

ul

TABLE OF CONTENTS

Questions Presented for Review ...............

Statement Pursuant to Rule 29.6 ...............

RE PN ey a re eee Para a

Tee ©E Cte AMOUMIOS nw cc ccc ccccccccce

fives ptaeeécciacnevelests

rT. iccack sods heh bees eaese eas

Statement of the Basis for Jurisdiction ..........

Constitutional and Statutory Provisions Involved ...

re nv ecécetenssvts

Summary of the Argument ....................

Reasons for Granting the Writ .................

I.

Whether The Ruling And Mandate Of The
United States Court Of Appeals For The Fifth
Circuit, Holding State Law Claims Which
Pertain To Work Performed On The Outer
Continental Shelf, While Governed By The
Outer Continental Shelf Lands Act And
Which Become Federal Law By Application
Of The Outer Continental Shelf Lands Act

Page

iil

xi

iv

Contents
Page

Surrogate Law Mandate, Are Deemed To Not
“Arise Under” The Laws Of The United
States To Sustain A Federal Question Subject
Matter Jurisdiction Removal Action,
And Which Conflict With Controlling
Jurisprudence Of This Honorable Court And
A Prior Decision Of The United States Court
Of Appeals For The Fifth Circuit, Present
Compelling Reasons For Review By Writ Of
GUN o0ccdcGe cp dweaneoreenndaens 8

II. Whether The Ruling And Mandate Of The
United States Court Of Appeals For The Fifth
Circuit, Which Permit Remand To State
Court Of A Civil Action Properly Removed
Under Original Federal Question Subject
Matter Jurisdiction Predicated Solely On
Concurrent State And Federal Court
Jurisdiction, Thereby Standing In Conflict
With A Decision Of The United States Court
Of Appeals For The Eighth Circuit, And
Which Issue Is Res Nova With This
Honorable Court, Present Compelling
Reasons For Review By Writ Of Certiorari.

TABLE OF CITED AUTHORITIES

Page
Cases:
Amoco Production Co. v. Sea Robin Pipeline Co.,
844 F.2d 1202 (Sth Cir. 1988) ......... 11, 14, 15, 16
Baldwin v. Sears, Roebuck & Co., 667 F.2d 458
ble A) Per eT ee ye rye rey ry a 20, 21
Barrois v. Title, 1996 WL 312063 (E.D. La. 1996)
eS ey ar ey pee BE asl he eo 20
Bondi v. Atlantic-Richfield Co., 1994 WL 66753
CRED. La SR obese tkeknstecxeasuer teases 11,14
Callison v. Charleston Area Medical Center, Inc.,
909 F. Supp. 391 (S.D.W.Va. 1995) .......... 20
Chilton v. Savannah Foods & Indus., Inc., 814 F.2d
ve, oo 2, Peper ieee Pee 20
Colorado River Water Conservation District v.
United States, 424 U.S. 800, 96 S. Ct. 1236,
SF h., Be DE Ce iva bie ee ease ee 21
Dennis v. Bud’s Boat Rental, Inc., 987 F. Supp. 948
5 ARO 1; Pree r errr rr re ree 11

Emrich v. Touche Ross & Co., 846 F.2d 1190
‘sk a Dr RS Poo re ee eee 20

vi

Cited Authorities
Page

Fields v. Pool Offshore, Inc., 1997 WL 767634 (E.D.
La. 1997), reh'g denied, 1998 WL 43217 (E.D.
La. 1998), aff'd, 182 F.3d 353 Sth Cir. 1999),
cert. denied, _ U.S. _ , 120 S. Ct. 1161, 145
SS FF 8 ot | erp ee 16

Gulf Offshore Co. v. Mobil Oil Co., 453 U.S. 473,
101 S. Ct. 2870, 2878, 69 L. Ed. 2d 784 (1981)

Gully v. First Nat'l Bank, 299 U.S. 109, 57 S. Ct.
FO, SE LE. FORRES i iv enedbencsenenece 15

Heimann v. National Elevator Indus. Pension Fund,
187 F.3d 493 (Sth Cir. 1999), citing and quoting,
Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58,
107 S. Ct. 1542, 95 L. Ed. 2d 55 (1987) ....... 15

Huber v. Greyhound Lines, Inc., 926 F. Supp. 821
GED. Wee. QOGED sésiicetesseenuneen 12, 18, 20, 21

Hufnagel v. Omega Service Indus., Inc., 182 F.3d
SOO GRC, GIGS ivicc cv bawereouke 5, 8, 11, 12, 14

Joyner v. Ensco Offshore Oil Co., 2000 WL 341029
CRED. GR. BRU 60kcceseccenscacdnn eae 11,14

Laredo Offshore Constructors, Inc. v. Hunt Oil Co.,
rode Freed f+ Re ee 20

LaRousse v. Murphy Exploration & Prod. Co., 1998
WL 283304 (E.D. La. 1998) ................. 16

vii

Cited Authorities
Page
Martin v. Pride Offshore Co., Inc., 1998 WL 24423
GED. Ee. TRE cccccccccsebdcncsccbstecaces 16
McArthur v. Carmichael, 1998 WL 146233
CRIP. BOGE occccccesesecescdstvassens 20, 21
McDermott Int'l, Inc. v. Lloyds Underwriters of
London, 944 F.2d 1199 (Sth Cir. 1991), reh'g
denied, 947 F.2d 1489 (SthCir. 1991) ......... 21
McPhillips v. Blue Cross & Blue Shield of Alabama,
79 F. Supp. 2d 1325 (M.D. Ala. 2000) ........ 20
Mercy Hospital Ass'n v. Miccio, 604 F. Supp. 1177
Jk Re & | SPP rrr erie 12, 18, 20
Offshore Logistics, Inc. v. Tallentire, 477 U.S. 207,
106 S. Ct. 2485, 91 L. Ed. 2d 174 (1986) ...... 20
Quackenbush v. Allstate Ins. Co., 517 U.S. 706, 116
S. Ct. 1712, 135 L. Ed. 2d 1 (1996) ........... 10, 21

Rodrigue v. Aetna Cas. & Sur. Co., 395 U.S. 352,
89 S. Ct. 1835, 23 L. Ed. 2d 360 (1969) .......

Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100,
61 S. Ct. 868, 85 L. Ed. 1214(1941) ......... 18

Smith v. Anadrill, Inc., 762 F. Supp. 1267 (S.D. Tex.
DOU ie 4d 06 bWasecabacnvenddthaa cakes 12, 18, 20

vill

Cited Authorities
Page
Stevo v. CSX Transp., Inc., 940 F. Supp. 1222
as SE “xb nb bowed’ ccveseaensdeoure 20
Stokes v. Petroleum Helicopters, 1997 WL 695557
eh PEE iedccckerdedecaueuawenen es 11,14
Tennessee Gas Pipeline Co. v. Houston Cas. Ins. Co.,
87 F.3d 150 (Sth Cir. 1996), reh ’g denied, 95 F.3d
beg. fs S|) rer ere 11,12, 13,14
Thermtron Products, Inc. v. Hermansdorfer, 423
U.S. 336, 96 S. Ct. 584, 46 L. Ed. 2d 542 (1976)
(ssddeneed cone taale rk eta eae 10
Warren v. United States, 932 F.2d 582 (6th Cir.
PEERS Sicdcakacckosesiexeessasweroreare 20
Weinstein v. Paul Revere Ins. Co., 15 F. Supp. 2d
Pe ts SE bk os cs he decasoxanaeniere 20, 21
Whitfield v. Federal Crop Ins. Corp., 557 F.2d 413
SS DPEN 8 80s oon ee Veencasdéwibeeeine 20

Williams v. Ragnone, 147 F.3d 700 (8th Cir. 1998)
pth eedsandidtadbiadatearbikisices 6, 17, 20, 21

Yurcik v. Sheet Metal Workers’ Int’l Assoc., 889
FP. Beppe. FOO GEDA BOGE). oc svcivaecccsces 20

Statutes:

28 U.S.C.

28 U.S.C.

28 U.S.C.

28 U.S.C.

28 U.S.C.

28 U.S.C.

28 U.S.C.

43 U.S.C.

43 U.S.C.

43 U.S.C.

43 U.S.C.

43 U.S.C.

ix

Cited Authorities

Page
RROD: cb avcacucwabtacdaaneenaed ]
Be eee ere ern errs ett Te re 18
DOOR a kkexss ree 1, 2, 6, 11, 12, 14, 19
fever er rer rer rrr re roe 9
SPREE cictssetiusssedekscavass 2, 10, 21
oo Beer reer ere rary ee oe 2,10
PO Sin dn ckodeabinnsekes bass 2
Be Rr Per eS er rere Per eeee 12,14
Ee occivsnereearaeas eases 13
Esl: nt} re 2, 5, 11, 13, 19
Ee Ey rT Our TT PT eee rer ee ree 13

x

Cited Authorities

Page
United States Constitution:
Pe See eer er ere reer ote re eee 2
Rules:
Federal Rule of Appellate Procedure 21(a) ....... 2
Federal Rule of Appellate Procedure 35 ......... 4
PUR EE 6k cds voce eunas dus veurss 4

xl

TABLE OF APPENDICES
Page
Appendix A — Opinion Of The United States Court
Of Appeals For The Fifth Circuit Dated And Filed
DE 20, OO bed eew andar tsadevnntaisecavas la
Appendix B — Memorandum And Order Of Remand
Of The United States District Court For The
Southern District Of Texas, Houston Division
Dated June 7, 2000 And Entered June 8, 2000
NES PE VE TE EEE TERE COUPLER Er Cree 3a
Appendix C — Per Curiam Order Of The United
States Court Of Appeals For The Fifth Circuit
Denying Petition For Reconsideration And
Rehearing Dated And Filed August 18, 2000
PI CC SPOUT OL LOR Ce eT OEE EU ERECT ETE 20a
Appendix D — United States Constitution, Article
Bre ee ree ere le ere rere er Te 22a
Appendix E — 28 U.S.C. § 1441(b) ............ 23a
Appendix F — 28 U.S.C. § 1447(c) and (d) ...... 24a
Appendix G — 43 U.S.C. § 1333(a)(2)(A) ....... 25a
Appendix H — 43 U.S.C. § 1349(b)(1)(A) ....... 26a

Lodging Appendix — Additional Relevant
Documents Submitted Separately

]

Petitioners respectfully Petition for a Writ of Certiorari
to review the ruling and Mandate of the United States Court
of Appeals for the Fifth Circuit.

OPINIONS BELOW

The Mandate denying the Petition for Writ of Mandamus
and the Order denying Reconsideration and Rehearing
En Banc of the United States Court of Appeals for the Fifth
Circuit, Civi! Action No. 00-20582, are not reported. !

The Remand Order of the United States District Court
for the Southern District of Texas in Science Applications
International Corporation v. Stolt Comex Seaway Holdings
Inc., Stolt Comex Seaway Inc., and Stolt Offshore Inc.,
Civil Action No. 00-1271, is not reported.’

STATEMENT OF THE BASIS FOR JURISDICTION

The judgment of the United States Court of Appeals for
the Fifth Circuit was entered July 19, 2000. The United States
Court of Appeals for the Fifth Circuit denied rehearing and
rehearing en banc in an Order dated August 18, 2000.
No motions for extension of time have been filed.

This Petition is filed within ninety days of the
United States Court of Appeals for the Fifth Circuit’s denial
of rehearing and therefore, this Honorable Court has
jurisdiction of this Petition by virtue of 28 U.S.C. § 1254(1).
Jurisdiction in the Courts below was premised on removal
jurisdiction, 28 U.S.C. § 1441(b), the Outer Continental

1. See Appendices A and C at la and 20a, respectively.

2. See Appendix B at 3a.

2

Shelf Lands Act, 43 U.S.C. § 1349(b)(1)(A), and Federal
Appellate Jurisdiction of the District Courts of the
United States, Federal Rule of Appellate Procedure 21(a)
and 28 U.S.C. § 1651(a).

CONSTITUTIONAL AND STATUTORY
PROVISIONS INVOLVED

The pertinent constitutional provision involved in this
case is United States Constitution, Art. III, § 2, cl. 1.

The pertinent statutes involved in this case are: 28 U.S.C.
§ 1441(b); 28 U.S.C. § 1447(c) and -(d); 43 U.S.C.
§ 1333(a)(2)(A); and 43 U.S.C. § 1349(b)(1)(A).4

STATEMENT OF THE CASE

On March 17, 2000, Science Applications International
Corporation (“SAIC”) filed suit against Stolt Comex Seaway
Holdings Inc., Stolt Comex Seaway Inc. and Stolt Offshore
Inc. (“SOI”) in the 164" Judicial District Court, Harris
County, Texas, regarding a contractual dispute pertaining to
the lay and burial of fiber optic cable, known as “FiberWeb”,
on the Outer Continental Shelf in the Gulf of Mexico off the
coast of Texas.* The fiber optic cable is the integral
transmission component of a communications system
constructed as a data and/or communications link between
oil and gas producing platforms located offshore on the Outer

3. See Appendix D at 22a.

4. See Appendices E through H at 23a through 26a,
respectively.

5. See Lodging Appendix (Tab 1) at L-1 through L-9.

3

Continental Shelf, to and from shoreside facilities for the
purpose and/or in furtherance of development and/or
production of minerals from the subsoil and seabed of the
Outer Continental Shelf.°

A Notice of Removal was timely filed on April 14, 2000
by SOI based on original subject matter jurisdiction under
the Outer Continental Shelf Lands Act (““OCSLA”).’ SAIC
filed a Motion to Remand on May 10, 2000,* which was
opposed by SOI.’ The District Court entered a Memorandum
and Order of Remand on June 8, 2000.'° A Petition for Writ
of Mandamus was filed by SOI on July 6, 2000."

By panel comprised of the Honorable Judges Wiener,
Garza and Parker, the United States Court of Appeals for
the Fifth Circuit, by Mandate of July 19, 2000, denied the
Petition for Writ of Mandamus.'* The United States Court
of Appeals for the Fifth Circuit recognized and held that
original jurisdiction over the dispute exists pursuant to the
OCSLA, but did not find that the matter “arises under”
Federal law. The Panel agreed with the District Court that

6. See Lodging Appendix (Tab 2) at L-10 through L-13.
7. See Lodging Appendix (Tab 3) at L-14 through L-21.
8. See Lodging Appendix (Tab 4) at L-22 through L-30.
9. See Lodging Appendix (Tab 5) at L-31 through L-49.
10. See Appendix B at 3a.

11. See Lodging Appendix (Tab 6) at L-50 through L-69.

12. See Appendix A at la.

4

the State and Federal Courts have concurrent jurisdiction
over claims under OCSLA, complete preemption does not
exist, and therefore, remand by the District Court was proper.
On August 2, 2000, Petitioners timely filed Petitions for
Reconsideration and/or Rehearing En Banc."

On August 18, 2000, the United States Court of Appeals
for the Fifth Circuit denied Petitioners’ Petitions for
Reconsideration and/or Rehearing En Banc, citing Federal
Rule of Appellate Procedure 35 and United States Court of
Appeals for the Fifth Circuit Rule 35."

SUMMARY OF THE ARGUMENT

The Outer Continental Shelf Lands Act (““OCSLA”)
pertains, in part, to cases and controversies arising out of, or
in connection with, operations on the Outer Continental Shelf
involving the exploration, development, or production of the
minerals of the subsoil or seabed of the Outer Continental
Shelf. Congress intended the subsoil of the Outer Continental
Shelf to appertain to the United States and be subject to its
jurisdiction, power and control. The law governing disputes
arising on the Outer Continental Shelf states:

... To the extent that they are applicable and not
inconsistent with this act or with other Federal
laws and regulations of the Secretary now in effect
or hereafter adopted, the civil and criminal
laws of each adjacent state now in effect are

13. See Lodging Appendia (Tab 7) at L-70 through L-86.

14. See Appendix C at 20a.

5

hereafter adopted, amended, or repealed
are hereby declared to be the law of the United
States for that portion of the subsoil and seabed
of the outer Continental Shelf, . . .

43 U.S.C. § 1333(a)(2)(A) (emphasis added).'°

The United States Supreme Court held the purpose
of the OCSLA was to define a body of law applicable to
the seabed, subsoil and the fixed structures on the
Outer Continental Shelf, which law was to be Federal law
of the United States, applying consistent State law only as
Federal law. Rodrigue v. Aetna Cas. & Sur. Co., 395 US.
352, 89 S. Ct. 1835, 23 L. Ed. 2d 360 (1969) (emphasis
added). The United States Court of Appeals for the
Fifth Circuit, in Hufnagel v. Omega Service Indus., Inc.,
182 F.3d 340 (Sth Cir. 1999), held that the subject personal
injury claim which arose on the Outer Continental Shelf,
emanated from Louisiana State law which became Federal
law by application of OCSLA’s surrogate law mandate, and
was determined to be one “arising under” the OCSLA for
purposes of removal. Hufnagel, supra.

The ruling and Mandate issued in these proceedings by
the United States Court of Appeals for the Fifth Circuit
conflict with controlling jurisprudence in erroneously
holding that State law-based claims, which emanate from
disputes pertaining to operations on the Outer Continental
Shelf, governed by the OCSLA, do not arise under Federal
law for purposes of original subject matter jurisdiction and
removal.

15. See Appendix G at 25a.

6

The ruling of the United States Court of Appeals for
the Fifth Circuit thereby sanctions remand to State Court of
a civil action properly removed under original federal
question subject matter jurisdiction predicated solely on
concurrent State and Federal Court jurisdiction. Such ruling
is in conflict with a decision of the United States Court of
Appeals for the Eighth Circuit, Williams v. Ragnone,
147 F.3d 700 (8th Cir. 1998). This issue is res nova with
this Honorable Court, and presents an important question of
Federal law which should be settled by this Honorable Court.

Civil actions properiy made the subject of removal,
by definition, present with a concurrent jurisdiction
threshold. To hold, as here by the United States Court
of Appeals for the Fifth Circuit, that concurrent jurisdiction
is a correct and sufficient basis for remand, raises the specter
that all matters so presenting, if removed, should
be remanded. Federal question subject matter jurisdiction
dictates a contrary end result, as such grants to litigants
access to Federal Court via removal pursuant to 28 U.S.C.
§ 1441(b). To hold otherwise, effectively negates that
statutorily granted remedy.

At issue herein, are contractual disputes between the
parties concerning the deployment, lay and burial of fiber
optic cable on the Outer Continental Shelf for the specific
purpose of providing communication and data links between
a number of offshore platforms and shoreside facilities as
respects, and solely as respects, operations conducted on the
Outer Continental Shelf pertaining to the development and
production of minerals from the subso1! and seabed of the
Outer Continental Shelf. Pursuant to the OCSLA, the law to
be applied, expressly declared to be Federal law, is that of
the adjacent State.

7

Had Congress intended the law of the State adjacent to
the particular Outer Continental Shelf situs to extend as State
law onto the Shelf, it would have so stated. Congress intended
Federal law (even if borrowed via surrogate status from the
adjacent State) to apply to the OCSLA. Hence, in those
matters governed by the OCSLA, Federal law controls and
those matters must be so analyzed, including, when existent,
matters pertaining to removal jurisdiction. There is no line
of demarcation put forth in the OCSLA to differentiate
application of law. Rather, once situs on the Shelf is
determined, State law is Federal law for all purposes of
resolving the matters at issue from their inception.

That original subject matter jurisdiction exists in_
the Federal Court by virtue of the Outer Continental
Shelf Lands Act is established and was so held by the United
States Court of Appeals for the Fifth Circuit. The District
Court did not remand for lack of subject matter jurisdiction
or defect in the removal procedure. Also clearly established,
is the absence of other permissible basis for remand.
Therefore, Petitioner’s statutory right to proceed in Federal
Court has erroneously been denied.

Petitioners’ Writ of Certiorari should be granted for these
compelling reasons, and the ruling and Mandate of the United
States Court of Appeals for the Fifth Circuit, upon review,
should be affirmed, in part, as to the existence of original
subject matter jurisdiction under the OCSLA, and reversed,
in part, with instructions to vacate the District Court’s
Remand Order and to remand for consistent proceedings.

8

REASONS FOR GRANTING THE WRIT

I. WHETHER THE RULING AND MANDATE OF
THE UNITED STATES COURT OF APPEALS FOR
THE FIFTH CIRCUIT, HOLDING STATE LAW
CLAIMS WHICH PERTAIN TO WORK
PERFORMED ON THE OUTER CONTINENTAL
SHELF, WHILE GOVERNED BY THE OUTER
CONTINENTAL SHELF LANDS ACT AND
WHICH BECOME FEDERAL LAW BY
APPLICATION OF THE OUTER CONTINENTAL
SHELF LANDS ACT SURROGATE LAW
MANDATE, ARE DEEMED TO NOT “ARISE
UNDER” THE LAWS OF THE UNITED STATES
TO SUSTAIN A FEDERAL QUESTION SUBJECT
MATTER JURISDICTION REMOVAL ACTION,
AND WHICH CONFLICT WITH CONTROLLING
JURISPRUDENCE OF THIS HONORABLE
COURT AND A PRIOR DECISION OF THE
UNITED STATES COURT OF APPEALS FOR THE
FIFTH CIRCUIT, PRESENT COMPELLING
REASONS FOR REVIEW BY WRIT OF
CERTIORARI.

The ruling of the United States Supreme Court for
the Fifth Circuit, in determining an inability to view this
dispute as one “arising under” Federal law, conflicts with
the opinion of this Honorable Court in Rodrigue v. Aetna
Cas. & Sur. Co., 395 U.S. 352, 89 S. Ct. 1835, 23 L. Ed. 2d
360 (1969), and further, with its own prior ruling,
Hufnagel v. Omega Service Indus., Inc., 182 F.3d 340
(Sth Cir. 1999). Specifically, original subject matter
jurisdiction exists in Federal court by required application
of the Outer Continental Shelf Lands Act (“OCSLA”).

9

Pursuant to the surrogate Federal law mandate of the OCSLA,
the law of the adjacent State becomes Federal law to address
and resolve all issues in the litigation. Federal law controls
and such claims therefore “arise under” Federal law for
removal jurisdiction purposes.

The subject Remand Order was not properly issued.
Permissible grounds for remand are lack of subject matter
jurisdiction, defect in removal procedure, contractual
arrangement between the parties, applicable statute
warranting remand, or circumstances giving rise to
discretionary dismissal. Close examination of the Remand
Order clearly reveals significant internal inconsistencies and
further, no permissible ground for remand. The District Court
writes, on page 16 of the Remand Order, the causes of action
asserted herein “. . . do not fall within the ambit of OCSLA
... and further explains, “. . .because the dispute does not
deal with or affect except in a most tangential way the
operations involving the exploration, development, or
production of natural resources of the OCS”."* The District
Court then concludes:

Ultimately, once FiberWeb is in and operating,
matters relating to the actual communications
regarding production of minerals on the OCS may
be within the jurisdictional grant of OCSLA."”

The Supreme Court precedent regarding the
reviewability of Remand Orders is clear and provides that
Remand Orders issued pursuant to 28 U.S.C. § 1441(c), based
on lack of subject matter jurisdiction or defect in removal

16. See Appendix B at 3a.

17. See Appendix B at 3a (emphasis added)

10

procedure, are not reviewable due to the bar of 28 U.S.C.
§ 1447(d). Quackenbush y. Allstate Ins. Co., 517 U.S. 706,
1168S. Ct. 1712, 135 L. Ed. 2d 1 (1996); Thermtron Products,
Inc. v. Hermansdorfer, 423 U.S. 336, 96 S. Ct. 584,
46 L. Ed. 2d 542 (1976) (disavowed in Quackenbush
regarding exclusivity of review by mandamus). Therefore,
Remand Orders based other than under 28 U.S.C. § 1447(c)
are reviewable, either by appeal, under the collateral order
doctrine, or by mandamus. Jd.

The United States Court of Appeals for the Fifth Circuit’s
ruling and Mandate correctly recognized the existence of
original subject matter jurisdiction under the OCSLA with
respect to the contract dispute at issue. However, the Court
commented, “... we fail to see how this contract dispute
‘arises under’ federal law”. The Court’s holding implicitly
found that concurrent jurisdiction between the State and
Federal Courts to be a sound basis for remand, effectively
denying the Petition for Writ of Mandamus and refusing to
vacate the District Court’s decision to remand.

SOI submits the Court’s findings and inconsistent
holding in failing to determine that the dispute “arises under”
Federal law and ruling that concurrent jurisdiction between
State and Federal Courts may be the sole ground for remand,
are erroneous.

The OCSLA is clear in providing for adoption of the
law of the adjacent State as a gap filler where there exists no
applicable Federal law:

... To the extent that they are applicable and not
inconsistent with this act or with other Federal

11

laws and regulations of the Secretary now in effect
or hereafter adopted, the civil and criminal Jaws
of each adjacent state now in effect are hereafter
adopted, amended, or repealed are hereby
declared to be the law of the United States for
that portion of the subsoil and seabed of the outer
Continental Shelf, . . .

43 U.S.C. § 1333(a)(2)(A) (emphasis added).'* The adopted
state law thereby becomes surrogate Federal law.
E.g., Tennessee Gas Pipeline Co. v. Houston Cas. Ins. Co.,
87 F.3d 150, 153-54 (Sth Cir. 1996), reh’g denied, 95 F.3d
1151 (Sth Cir. 1996). OCSLA’s mandated application of
adjacent State law requires the State law become surrogate
Federal law. Applied to these facts, SAIC’s State law claims
are transformed into Federal claims and thereby “arise under”
Federal law. See Rodrigue, supra; Hufnagel, supra;
Tennessee Gas Pipeline Co., supra; Amoco Production Co.
v. Sea Robin Pipeline Co., 844 F.2d 1202 (Sth Cir. 1988);
Dennis v. Bud's Boat Rental, Inc., 987 F. Supp. 948
(E.D. La. 1997); Joyner v. Ensco Offshore Oil Co., 2000
WL 341029 (E.D. La. 2000); Stokes v. Petroleum
Helicopters, 1997 WL 695557 (E.D. La. 1997); Bondi v.
Atlantic-Richfield Co., 1994 WL 66753 (E.D. La. 1994).

Thus, removal was proper under 28 U.S.C. § 1441(b),
which provides:

... Any civil action of which the district courts
have original jurisdiction founded on a claim or
arising under the Constitution, treaties or laws

18. See Appendix G at 25a.

(ee ee ee eee eros eee >

12

of the United States shall be removable without
regard to the citizenship or residence of the
parties ...

28 U.S.C. § 1441(b) (emphasis added).'®

The United States Court of Appeals for the Fifth Circuit’s
pronouncement in failing to recognize how this matter
“arises under” Federal law for purposes of removal
jurisdiction should not serve as the reason to deprive SOI of
its statutory right to adjudicate this matter in a federal forum.
E.g., Huber v. Greyhound Lines, Inc., 926 F. Supp. 821
(E.D. Wis. 1996); Smith v. Anadrill, Inc., 762 F. Supp. 1267
(S.D. Tex. 1991); Merey Hospital Ass’n v. Miccio,
604 F. Supp. 1177 (E.D.N.Y. 1985).

The United States Court of Appeals for the Fifth Circuit,
in Hufnagel, supra, held that a State law claim made
applicable Federal law by OCSLA, is one “arising under”
OCSLA within the meaning of 28 U.S.C. § 1441(b)
and 43 U.S.C. § 1333, and is thus removable to Federal Court.
This ruling is consistent with this Honorable Court’s
holding in Rodrigue, supra, the United States Court
of Appeals for the Fifth Circuit’s prior dictates of
Tennessee Gas Pipeline Co., supra, and the general policy
of uniformity concerning litigation of disputes arising on
the Outer Continental Shelf by the Federal Courts,
particularly since Congress has intended to treat the Shelf
as a “federal enclave”. Rodrigue, 395 U.S. at 354.
In Rodrigue, the Supreme Court held that the purpose of
OCSLA was “. . . to define a body of law applicable to the
seabed, the subsoil, and the fixed structures such as those in

19. See Appendix E at 23a.

13

question here on the Outer Continental Shelf.” Jd.
In Tennessee Gas Pipeline Co., supra, the United States
Court of Appeals for the Fifth Circuit addressed whether
OCSLA claims arise under Federal law for removal purposes.
The Court stated, “given the national interest that prompted
Congress to pass OCSLA and grant broad jurisdiction under
43 U.S.C. § 1349, Congress arguably intended to vest the
Federal Courts with the power to hear any case involving
the OCS, even on removal, without regard to citizenship.”
Tennessee Gas Pipeline Co., 87 F.3d at 156.

The United States Court of Appeals for the Fifth Circuit
Panel, by Mandate in these proceedings, correctly concluded
that original jurisdiction does, in fact, exist “... as a result
of the subject matter of the contract in issue being a support
activity of the petroleum platforms and aiding in the
production of minerals of the Outer Continental Shelf, . . .”.?°

Section 1333(a)(2) of the OCSLA provides that laws of
the adjacent State, when not inconsistent with OCSLA or
with other Federal laws and regulations are declared to be
Federal law. 43 U.S.C. § 1333(a)(2)(A).?! In this matter,
the laws of the State of Texas, as the State adjacent to the
Outer Continental Shelf-based operations at issue, became
surrogate Federal law for purposes of resolving this
contractual dispute. SOI submits the absence of sound
reasoning to differentiate the legal analysis between laws
which are derived directly from a Federal statute and those
which derive from the law of the adjacent State and become
Federal by virtue of the surrogate law mandate of OCSLA.

20. See Appendix A at 2a.

21. See Appendix G at 25a.

14

See, e.g., Tennessee Gas Pipeline Co., supra; Amoco
Production Co., supra; Joyner, supra; Stokes, supra;
Bondi, supra.

The Hufnagel Court made no such distinction, applying
the Louisiana Civil Code as surrogate Federal law to a
personal injury claim arising on the Outer Continental Shelf.
Hufnagel, supra. The Civil Code Article claim was
determined to be one “arising under” the OCSLA
for purposes of removal under § 1441(b) and § 1333.
SOI submits the absence of a valid or rational distinction
between the Louisiana Civil Code Article claims in Hufnagel
and those Texas-based contract claims herein with respect
to whether they “arise under” Federal law (OCSLA)
for purposes of subject matter jurisdiction.

All elements of SAIC’s stated cause of action arise under
the OCSLA, since the contractual dispute at issue directly
pertain to matters related to the production of minerals on
the Outer Continental Shelf. SAIC’s claims specifically
pertain to activities conducted and/or which occurred on the
Outer Continental Shelf; hence, the OCSLA controls.
Preemption is not nor does it become an issue. The District
Court erroneously noted removal was premised on grounds
that the OCSLA preempted the case. Rather, the case was
removed pursuant to the specific jurisdictional grant
contained within the OCSLA, as arising under Federal law.

The District Court cited the “well-pleaded complaint-
rule” in noting the propriety of removal depends upon
whether the case falls within the original federal question
jurisdiction under “38 (sic) U.S.C. § 1331”.” It is well-settled

22. See Appendix B at Sa.

15

that a cause of action “arises under” Federal law only when
the “well-pleaded” complaint of plaintiff raises issues of
Federal law. Gully v. First Nat'l Bank, 299 U.S. 109, 57
S. Ct. 96, 81 L. Ed. 70 (1936). The jurisprudentially
recognized corollary is “complete preemption”, which holds,
“... Congress may so completely preempt a particular area
that any civil complaint raising this select group of claims is
necessarily federal in character.”> Heimann v. National
Elevator Indus. Pension Fund, 187 F.3d 493, 499 (Sth Cir.
1999), citing and quoting, Metropolitan Life Ins. Co. v.
Taylor, 481 U.S. 58, 63, 107 S. Ct. 1542, 95 L. Ed. 2d 55
(1987).

SOI submits the “well-pleaded complaint rule” and the
issue of “complete preemption” are never reached as the
OCSLA contains its own specific jurisdictional grant,
43 U.S.C. § 1349(b)(1)(A).% In Amoco Production Co.,
supra, the United States Court of Appeals for the Fifth Circuit
addressed whether an action involving the “take-or-pay”
obligations in contracts for the sale or purchase of natural
gas involved a dispute within the District Court’s jurisdiction
under the Outer Continental Shelf Lands Act. In ultimately
deciding that the contracts involved “production”,
and therefore were within OCSLA jurisdiction, the Court,
with regard to the “well-pleaded complaint rule”, stated:

In determining federal court jurisdiction, we need
not traverse the Serbonian Bog of the well

23. “Complete preemption” is sometimes confused with
“ordinary preemption”, the latter of which does not implicate federal
question subject matter jurisdiction. Heimann, 187 F.3d at 499.

24. See Appendix H at 26a.

16

pleaded complaint rule ... because ... OCSLA
expressly invests jurisdiction in the United States
District Courts.

Amoco Production Co., 844 F.2d at 1205 (internal citations
omitted and emphasis added).”° The existence of OCSLA-
grounded original subject matter jurisdiction, as correctly
found by the United States Court of Appeals for the
Fifth Circuit in its Mandate, dictates that neither the
“well pleaded complaint rule” nor its corollary of “complete
preemption” are at issue.

25. See also, LaRousse v. Murphy Exploration & Prod. Co.,
1998 WL 283304 (E.D. La. 1998); Martin v. Pride Offshore Co.,
Inc., 1998 WL 24423 (E.D. La. 1998); and Fields v. Pool Offshore,
Inc., 1997 WL 767634 (E.D. La. 1997), reh’g denied, 1998
WL 43217 (E.D. La. 1998), aff'd, 182 F.3d 353 (Sth Cir. 1999),
cert. denied, _U.S.__, 120 S. Ct. 1161, 145 L. Ed. 2d 1073 (2000).

17

II. WHETHER THE RULING AND MANDATE OF
THE UNITED STATES COURT OF APPEALS FOR
THE FIFTH CIRCUIT, WHICH PERMIT
REMAND TO STATE COURT OF A CIVIL
ACTION PROPERLY REMOVED UNDER
ORIGINAL FEDERAL QUESTION SUBJECT
MATTER JURISDICTION PREDICATED
SOLELY ON CONCURRENT STATE AND
FEDERAL COURT JURISDICTION, THEREBY
STANDING IN CONFLICT WITH A DECISION OF
THE UNITED STATES COURT OF APPEALS FOR
THE EIGHTH CIRCUIT, AND WHICH ISSUE IS
RES NOVA WITH THIS HONORABLE COURT,
PRESENT COMPELLING REASONS FOR
REVIEW BY WRIT OF CERTIORARI.

The United States Court of Appeals for the Fifth Circuit’s
refusal to find District Court error in remanding the case
based upon the existence of concurrent jurisdiction between
the State and Federal Courts, conflicts with the opinion from
the United States Court of Appeals for the Eighth Circuit,
Williams v. Ragnone, 147 F.3d 700 (8th Cir. 1998).

Petitioners (Defendants in the District Court) have a
statutory right of removal. There was no defect in the removal
procedure. However, Petitioners’ right of removal has
effectively been denied by the United States Court of Appeals
for the Fifth Circuit. The United States Supreme Court has
not previously spoken on the precise issue of whether the
existence of concurrent jurisdiction in State and Federal
Courts may serve as the sole basis for remand and therefore
be used to defeat a defendant’s statutory right to removal.
This issue res nova to this Honorable Court, calls for
examination of the Federal Court’s original subject matter

18

jurisdiction, removal jurisdiction and a defendant’s statutory
right to removal, which present inconsistent decisions from the
Circuit Courts of Appeal, and, SOI respectfully submits, should
be sesolved by this Honorable Court.

Federal Courts, as courts of limited jurisdiction,
afford restricted and limited removal jurisdiction.
Justice Stone, speaking for the Court in Shamrock Oil & Gas
Corp. v. Sheets, 313 U.S. 100, 61 S. Ct. 868, 85 L. Ed. 1214
(1941), stated:

[nJot only does the language of the Act of 1887
evidence the congressional purpose to restrict the
jurisdiction of the federal courts on removal, but the
policy of the successive Acts of Congress regulating
the jurisdiction of federal courts is one calling for
the strict construction of such legislation. . . .

Shamrock Oil & Gas Corp., 313 U.S. at 108-109.

A defendant’s right to removal dates back to the original
Judiciary Act of 1789.7 The current removal statute,
28 U.S.C. § 1441, limits and restricts a defendant’s ability to
remove actions. When matters are clearly within the removal
jurisdiction of a Federal Court, that statutory nght should be
protected and the removing defendant should be allowed the
opportunity to proceed in a Federal forum. See, e.g., Huber v.
Greyhound Lines, Inc., 926 F. Supp. 821 (E.D. Wis. 1996);
Smith v. Anadrill, Inc., 762 F. Supp. 1267 (S.D. Tex. 1991);
Mercy Hospital Ass'n v. Miccio, 604 F. Supp. 1177 (E.D.N.Y.
1985).

The OCSLA applies, controls and original subject matter
jurisdiction exists by virtue thereof. SOI submits removal

26. 1 Stat. 73, c. 20, § 12.

19

jurisdiction exists pursuant to 28 U.S.C. § 1441(b).
The United States Court of Appeals for the Fifth Circuit,
while finding that original subject matter jurisdiction exists,
erroneously found that the matter did not arise under Federal
law (previously addressed herein), and held that because of
the existence of concurrent jurisdiction between State and
Federal Courts, this matter was properly remanded.”’

Although State Courts have concurrent jurisdiction, the
law to be applied is exclusively Federal. 43 U.S.C.
§ 1333(a)(2)(A)*; Rodrigue, 395 U.S. at 357. The contractual
disputes, while concerning a Texas law conceived contract,
“arises under” Federal law pursuant to the OCSLA surrogate
law mandate. As such, SOI has an absolute statutory right to
removal under 28 U.S.C. § 1441(b). The District Court,
in granting the Motion to Remand, deprived SOI of its
statutory right to proceed in a Federal forum. SOI submits
the District Court had neither the authority nor discretion
to remand this properly removed claim. SOI recognizes
parties may consent to litigate OCSLA matters in State Court.
However, the United States Court of Appeals for the
Fifth Circuit’s reference to concurrent jurisdiction between
the State and Federal Courts with respect to OCSLA claims
as the proper and sole basis for remand is misplaced and
affords neither a sufficient nor permissible basis to deprive
SOI of its statutory right to proceed in a Federal forum.

It is well-settled that jurisdiction is concurrent between
State and Federal Courts over personal injury and
contract actions arising under the OCSLA. E£.g., Gulf
Offshore Co. v. Mobil Oil Co., 453 U.S. 473, 484, 101 S. Ct.

27. See Appendix A at la.

28. See Appendix G at 25a.

20

2870, 2878, 69 L. Ed. 2d 784 (1981); Offshore Logistics,
Inc. v. Tallentire, 477 U.S. 207, 232, 106 S. Ct. 2485, 2499,
91 L. Ed. 2d 174 (1986); Laredo Offshore Constructors, Inc.
v. Hunt Oil Co., 754 F.2d 1223, 1229 (Sth Cir. 1985).
The existence of concurrent jurisdiction does not grant the
District Court the authority or discretion to remand based
solely on such concurrent jurisdiction and to so grant is
impermissible. Williams v. Ragnone, 147 F.3d 700, 702-703
(8th Cir. 1998). To do so effectively defeats a defendant’s
statutory right to removal.

The majority rule is clear. Absent contrary Congressional
declaration, all civil actions brought under Federal
statute over which Federal and State Courts have concurrent
jurisdiction are removable. See, e.g., Williams, supra;
Warren v. United States, 932 F.2d 582, 585 (6th Cir. 1991);
Emrich v. Touche Ross & Co., 846 F.2d 1190,-1196 (9th Cir.
1988); Chilton v. Savannah Foods & Indus., Inc., 814 F.2d
620, 623 (11th Cir. 1987); Baldwin v. Sears, Roebuck & Co.,
667 F.2d 458, 460 (5th Cir. 1982); Whitfield v. Federal Crop
Ins. Corp., 557 F.2d 413, 414 (4th Cir. 1977); McPhillips v.
Blue Cross & Blue Shield of Alabama, 79 F. Supp. 2d
1325, 1327 (M.D. Ala. 2000); Weinstein v. Paul Revere Ins.
Co., 15 F. Supp. 2d 552, 559 (D.N.J. 1998); Stevo v. CSX
Transp., Inc., 940 F. Supp. 1222, 1224 (N.D. Ill. 1996);
Huber, supra; Callison v. Charleston Area Medical Center,
Inc., 909 F. Supp. 391, 394 (S.D.W.Va. 1995); Yurcik v. Sheet
Metal Workers’ Int'l Assoc., 889 F. Supp. 706, 707 (S.D.N.Y.
1995); Smith, supra; Mercy Hospital Ass’n., supra;
McArthur v. Carmichael, 1998 WL 146233 (S.D.N.Y. 1998);
Barrois v. Title, 1996 WL 312063 (E.D. La. 1996).

In so ruling that concurrent jurisdiction permits remand
to State Court, the United States Court of Appeals for the
Fifth Circuit has clearly ruled in conflict with the United

21

States Court of Appeals for the Eighth Circuit in Williams v.
Ragnone, supra. Furthermore, the United States Court of
Appeals for the Fifth Circuit’s Mandate arguably contradicts
its own ruling in Baldwin v. Sears, Roebuck & Co., supra,
which, consistent with the majority rule, held that absent
contrary Congressional declaration, all civil actions brought
under Federal statute over which concurrent jurisdiction
exists are clearly removable. Baldwin, 667 F.2d at 460.

When there exists a lack of subject matter jurisdiction,
remand is clearly proper. 28 U.S.C. § 1447(c)”; Quackenbush
v. Allstate Ins. Co., 517 U.S. 706, 116 S. Ct. 1712,
135 L. Ed. 2d 1 (1996). Further, a case may be remanded
for defect in the removal procedure, when warranted
by Federal statute, when there exists a contract between
the parties so directing, or when the Court has discretion
to dismiss the action, such as when abstention is at issue.*°
E.g., McDermott Int'l, Inc. v. Lloyds Underwriters of London,
944 F.2d 1199, 1204 (SthCir. 1991), reh’g denied, 947 F.2d
1489 (Sth Cir. 1991). Notably, however, the existence of
concurrent jurisdiction between State and Federal Courts is
not amongst those permissible reasons, cannot be used to
defeat removal, and should not be the sole reason for remand.
See, e.g., Williams, supra; Weinstein, supra; Huber, supra;
McArthur, supra.

29. See Appendix F at 24a.

30. Abstention is appropriate when a Federal constitutional
issue might be mooted or presented differently by a State Court,
when there are difficult questions of State law bearing on
policy problems of substantial public import of transcending
importance, and, under certain circumstances, when federal
jurisdiction has been invoked for purpose of restraining State
criminal proceedings. Colorado River Water Conservation District
v. United States, 424 U.S. 800, 96 S. Ct. 1236, 47 L. Ed. 2d 483
(1976) (internal citations omitted).

22

The issue of whether the existence of concurrent
jurisdiction between State and Federal Courts may be the
sole reason for remand, when the matter was otherwise
properly removed, is res nova with this Honorable Court.
The United States Court of Appeals for the Fifth Circuit
permitted remand based solely on concurrent jurisdiction
between State and Federal Courts, effectively thwarting
Petitioners’ statutory right to removal and thereby the
siatutorily granted access to Federal Court. Such ruling
effectively negates the removal statute, for a District Court
could conceivably remand all properly removed cases based
solely on the existence of concurrent jurisdiction between
State and Federal Courts, an inherent circumstance in a
proper removal setting.

CONCLUSION

The OCSLA expressly provides that the law of the
adjacent State is to be applied as Federal law. Jurisprudence
of this Honorable Court and a prior ruling of the United States
Court of Appeals for the Fifth Circuit support the rule that a
claim emanating from activities on the Outer Continental
Shelf “arise under” the OCSLA. Therefore, for purposes of
original subject matter jurisdiction and removal, Federal law
governs.

The ruling and Mandate of the United States Court
of Appeals for the Fifth Circuit conflict with controlling
jurisprudence in erroneously holding that State law-based
claims, which emanate from disputes occurring on the
Outer Continental Shelf, do not “arise under” Federal law,
while simultaneously ruling that original subject matter
jurisdiction exists under the OCSLA.

23

Res nova to this Honorable Court is whether a civil action
properly removed under original federal question subject
matter jurisdiction may be remanded predicated solely on
concurrent jurisdiction between State and Federal Courts.
The United States Court of Appeals for the Fifth Circuit, in
its ruling and Mandate, answered this question in the
affirmative thereby sanctioning remand to State Court of such
an action. Such ruling conflicts with a decision of the United
States Court of Appeals for the Eighth Circuit and effectively
denies a defendant’s statutory right to remove the action and
proceed in Federal Court.

Petitioners respectfully suggest the result of the United
States Court of Appeals for the Fifth Circuit’s ruling and
thereby the affect on removal actions, warrants grant of this
Petition for a Writ of Certiorari.

Upon review by Writ of Certiorari, the ruling and
Mandate of the United States Court of Appeals for the Fifth
Circuit should be affirmed, in part, as to the existence of
original subject matter jurisdiction under the OCSLA, and
reversed, in part, with instructions to vacate the District
Court’s Remand Order and to remand for consistent
proceedings.

Respectfully submitted,

RALPH E. KRAFT

Counsel of Record
CHARLES A. MouTON
JEAN ANN BILLEAUD
Preis, KRAFT & Roy
Attorneys for Petitioners
Versailles Centré

Suite 400

102 Versailles Boulevard
Lafayette, Louisiana 70509
(337) 237-6062

APPENDIX

la

APPENDIX A — OPINION OF THE UNITED STATES
COURT OF APPEALS FOR THE FIFTH CIRCUIT
DATED AND FILED JULY 19, 2000

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

No. 00-20582

In Re: STOLT COMEX SEAWAY HOLDINGS INC:;
STOLT COMEX SEAWAY INC:;
STOLT OFFSHORE INC.

Petitioners

Petition for Writ of Mandamus to the United States
District Court for the
Southern District of Texas, Houston

Before WIENER, EMILIO M. GARZA and PARKER,
Circuit Judges.

BY THE COURT:

The district court entered an Order remanding this case
to the 164th Judicial District Court for Harris County, Texas,
reasoning that the burial of fiber optic communication cable
on the Outer Continental Shelf was not a support activity of
petroleum platforms and that the dispute at hand, which is a
contract dispute involving the laying of said cable, does not
involve the exploration, development or production of
minerals of the Outer Continental Shelf and that therefore
jurisdiction was lacking in the federal court. While we
disagree with the district court and find that original

2a

Appendix A

jurisdiction does, in fact, exist in the district court as a result
of the subject matter of the contract in issue being a support
activity of the petroleum platforms and aiding in the
production of minerals of the Outer Continental Shelf, such
jurisdiction is not exclusive in the federal courts, but is
concurrent with the state courts. Further, we fail to see how
this contract dispute “arises under” federal law. In other
words, we have identified no element of plaintiff's cause of
action, much less an essential element, that is created by a
law of the United States, nor do we have a situation where
Congress has so completely preempted breach of contract
claims involving support activity of oil and gas production
on the Outer Continental Shelf so that such claims would
necessarily be federal in nature. See Metropolitan Life Ins.
Co. v. Taylor, 481 U.S. 58, 63-64 (1987); see also
Caterpillar, Inc. v. Williams, 482 U.S. 386, 392-94, 398-99
(1987).

Our disagreement, however, with the district court
involving its findings that the laying of this cable is not a
support activity or involves the exploration, development or
production of minerals on the Outer Continental Shelf does
not alter the correctness of its conclusion that the state and
federal courts have concurrent jurisdiction over contract
issues brought under the OCSLA, and that no complete
pre-exemption exists. The petition for mandamus is,
therefore, DENIED.

3a

APPENDIX B — MEMORANDUM AND ORDER OF
REMAND OF THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF TEXAS,
HOUSTON DIVISION DATED JUNE 7, 2000
AND ENTERED JUNE 8, 2000

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION

CIVIL ACTION NO. H-00-1271
SCIENCE APPLICATIONS INT’L CORPORATION,

Plaintiff
VS.

STOLT COMEX SEAWAY HOLDINGS, INC..,
STOLT COMEX SEAWAY, INC., -
AND STOLT OFFSHORE, INC.,

Defendants
MEMORANDUM AND ORDER OF REMAND

Pending before the Court in the above referenced action
alleging breach of contract and negligent misrepresentation
under Texas law, removed from the 164th Judicial District
Court in Harris County, Texas by Defendants Stolt Comex
Seaway Holdings, Inc., Stolt Comex Seaway, Inc., and Stolt
Offshore, Inc. under U.S.C. § 1331 and § 1441(b) on the
grounds that this case is preempted by the Outer Continental
Shelf Lands Act (“OCSLA”), 43 U.S.C. §§ 1331, ef seq.,

4a
Appendix B

are the following motions: (1) Plaintiff Science Application
International Corporation’s motion to remand (#6);
(2) Defendants’ motion to extend submission day and for
leave to conduct limited discovery (#10); and (3) Defendants’
motion for expedited consideration (#12).

Plaintiff explains that this case arises out of a contract
that it entered into with Petroleum Communications, Inc. -
(“PetroCom”’)' to lay approximately 500 miles of fiber optic
cable on the floor of the Gulf of Mexico, in part on the Outer
Continental Shelf (“OCS”) off the shore of Texas, as a
portion of a communications system known as “FiberWeb”
connecting and designed to increase the speed of
communication among offshore platforms and the Houston -
and New Orleans central business districts. Defendants,
which provide underwater robotics, diving services and
underwater engineering and construction to the offshore oil
and gas industry, were selected to lay and bury the fiber-optic
cable in the ocean floor but were unable to perform their
contractual obligations within the time allowed.

The removing parties bear the burden of proving that
removal was proper and that Plaintiff's claims arise under
OCSLA. Carpenter v. Wichita Falls Indep. School Dist.,
44 F.3d 362, 365 (Sth Cir. 1995). As here, where there is no
diversity of citizenship among the parties, the propriety of

1. According to a press release, dated September 5, 1997
submitted by Defendants as an exhibit to their opposition to the
motion to remand, “PetroCom, a Louisiana corporation, is a leading
provider of telecommunications services to the energy industries in
the Gulf of Mexico with facilities in New Orleans, La.; Lafayette,
La.; and Houston, Tx.”

ccm i

Sa
Appendix B

removal depends upon whether the case falls within original
federal question jurisdiction under 38 U.S.C. § 1331. Under
the well-pleaded complaint rule, a defendant may only
remove a case to federal court where the complaint (or
petition in Texas state court), standing by itself, establishes
that the case “arises under” federal law within the meaning
of § 1331. “A defendant may not remove on the basis of an
anticipated federal defense, but instead must show that a
federal right is ‘an element, and an essential one, of the
plaintiff's cause of action.’ ” Carpenter, 44 F.3d at 366,
quoting Gully v. First Nat’l Bank, 299 U.S. 109, 111 (1936).
If the plaintiff's complaint states only state-law causes of
action, the case does not arise under federal law and many
not be removed. Kramer v. Smith Barney, 80 F.3d 1080, 1082
(Sth Cir. 1996). “Nor will an anticipated federal defense,
including the defense of preemption, support removal.” Jd.
Only where the preemption is “complete” — where Congress
has “so completely pre-empt[ed] a particular area that any
civil complaint raising this select group of claims is
necessarily federal in character” — may a petition asserting
only state-law causes of action be removed. /d., citing
Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 63-64
(1987). See also Caterpillar, Inc. v. Williams, 482 U.S. 386,
392-94, 398-99 (1987) (In the absence complete preemption,

2. Generally federal preemption is a defensive matter that does
not give rise to federal question jurisdiction in a nondiversity case,
even in an action for a declaratory judgment that a state law is
preempted. Franchise Tax Board v. Construction Laborers Vacation
Trust, 463 U.S. 1 (1983). Only where the preemption is “complete,”
i.€., 1S SO pervasive and displacing as to bring the case within the
rule of Metropolitan Life Insurance Co. v. Taylor, 481 U.S. 58, is
removal proper.

6a

Appendix B

a plaintiff in a nondiversity suit is the master of his complaint
and may avoid federal subject-matter jurisdiction by relying
exclusively on state law.).

As a threshold matter, Defendants have requested an
extension of time to respond and leave to conduct limited
discovery on the issue of subject matter jurisdiction under
OCSLA. Defendants provide a proposed set of interrogatories
on the question and seek depositions of a corporate
representative of Defendants and of PetroCom. They also
move for expedited consideration of the motion to remand
once the limited discovery is completed. In their opposition
to the motion to remand, they make more specific arguments,
to be discussed subsequently.

Plaintiff opposes an extension and leave to conduct
limited discovery, arguing that such discovery is irrelevant
because “to support removal, the defendant must locate the

basis of federal jurisdiction in those allegations necessary

to support the plaintiff's claim, ignoring his own pleadings
and petition for removal.” Carpenter v. Wichita Falls Indep.
School Dist., 44 F.3d 362, 365 (Sth Cir. 1995) (remand
motion should be based on petition alone). As will be
discussed, if Plaintiff's allegations fall within the ambit of
OCSLA’s jurisdictional mandate, the state law claims will
be preempted by what is termed OCSLA’s surrogate federal
law. Thus the Court addresses the arguments relating to the
motion to remand before determining whether limited
discovery should be permitted to aid in the determination.

Plaintiff moves for remand arguing that this Court lacks
jurisdiction under OCSLA, 42 U.S.C. § 1349(b)(1), which

7a

Appendix B

provides in relevant part, “The district courts of the United
States shall have jurisdiction of cases and controversies
arising out of, or in connection with (A) any operation
conducted on the Outer Continental Shelf which involves
exploration, development, or production of the minerals, of
the subsoil and seabed of the outer Continental Shelf, or
which involves rights to such minerals... .”? Plaintiff
contends that Defendants’ burial of the fibre cable did not
involve “exploration,” “development” or “production” of
minerals of the OCS as those terms are defined by 43 U.S.C.
§ 1331 (k)-(m). Those terms refer to processes involved in
the search for minerals, preparing to extract them by drilling
wells and constructing platforms, inter alia, and removing
the minerals and transferring them to shore.’ Tennessee Gas

3. OCSLA was enacted in 1953 to establish federal ownership
and control over the mineral resources of the OCS and to provide
for the development of those natural resources. E.P. Operating Ltd.
Partnership v. Placid Oil Co., 26 F.3d 563 (5th Cir. 1994). It also
establishes a regulatory scheme controlling leasing and operations
there. Jd. at 566.

4. “Exploration” is defined as the “process of searching for
minerals,” including geophysical surveys and drilling.” § 1331(k).
“[D]evelopment means those activities which take place following
the discovery of minerals in paying quantities, such as geophysical
activity, drilling, platform construction, and operation of all onshore
support facilities, and which are for the purpose of ultimately
producing the minerals discovered.” § 1331(1). “ ‘{P]roduction’
means those activities which take place after the successful completion
of any means for the removal of minerals, including such removal,
field operations, transfer of minerals to shore, operation monitoring,
maintenance, and work-over drilling.” § 1331(M).

(Cont'd)

8a

Appendix B

Pipeline v. Houston Casualty Ins. Co., 87 F.3d 150, 154-55
(Sth Cir. 1996). Clearly the burial of the cable did not relate

directly to searching for, developing or extracting minerals
from the OCS, Plaintiff argues.

Plaintiff asserts that OCSLA jurisdiction is generally
limited to litigation directly relating to petroleum platforms
or pipelines, essential instrumentalities for the exploration,
development, and production of the OCS’s resources. Jd. at
154-55 (suit regarding damage to offshore platform covered
by OCSLA); EP Operating Ltd. Partnership v. Placid Oil
Co., 26 F.3d 563, 568 (Sth Cir. 1994) (dispute over ownership
of offshore platform covered by OCSLA because resolution
of the dispute “would affect the efficient exploitation of
resources from the OCS and/or threaten the total recovery

(Cont’d)

The Court notes that “operation” is not defined in the OCSLA.
In Amoco Prods. Co. v. Sea Robin Pipeline Co., 844 F.2d 1202,
1207 (Sth Cir. 1988), the Fifth Circuit “generally” agreed that
“operation” “refers to the doing of some physical act” and explained
that otherwise the situs of the “operation . . . involv[ing] exploration,
development, or production of minerals ... of the [OCS]” would
be uncertain making it extremely difficult to ascertain whether the
“operation” had been conducted on the OCS,” as required by § 1349
(“any operation conducted on the Outer Continental Shelf which
involved exploration, development, or production of the minerals
....”). The Fifth Circuit further stated in E.P. Operating Ltd.
Partnership v. Placid Oil Co., 26 F.3d 563, 568 (Sth Cir. 1994) that
the terms “operation,” “exploration,” “development,” and
“production” “are defined broadly in the statutes to encompass the
full range of oil and gas activity from locating mineral resources
through the construction, operation, servicing and maintenance of
facilities to produce those resources.”

* ee man Meet ETN

9a

Appendix B

of federally-owned resources”); Amoco Prods. Co. v. Sea
Robin Pipeline Co., 844 F.2d 1202, 1210 (5th Cir. 1988)
(OCSLA applied to dispute over “take-or-pay” provision in
contract regarding purchase of natural gas from Gulf because
the dispute might “alter[ ] the progress of production
activities on the OCS [and consequently] threatens to impair
the total recovery of federally-owned minerals from the
reservoir or reservoirs underlying the OCS”); Laredo
Offshore Constructors, Inc. v. Hunt Oil Co., 754 F.2d 1223
(Sth Cir. 1985) (OCSLA applied to breach of contract claim
related to the construction of an offshore platform); United
Offshore Co. v. Southern Deepwater Pipeline Co., 899 F.2d
405 (Sth Cir. 1990) (jurisdiction exists under OCSLA
because contract dispute regarding the discharge of the
operator of a gas pipeline connected to the OCS “would affect
the exploitation of minerals” on the OCS).

In contrast, jurisdiction was found not to exist under the
OCSLA in Brooklyn Union Exploration Co. Inc. v. Tejas
Power Corp., 930 F. Supp. 289, 292-93 (S.D. Tex. 1996), in
which a seller of natural gas from the OCS claimed that it
had been underpaid by a buyer of the gas because the dispute
did not threaten to “alter the flow of production or otherwise
affect the efficient exploitation of natural resources in the
OCS.” In Harris Trust and Savings Bank v. Ener Assets
Int'l Corp., 124 F.R.D. 115 (E.D. La. 1989), the ceurt held a
priority dispute between holders of a mortgage covering oil
and gas leases on the OCS would not affect production on
the OCS and therefore was not within the ambit of the
OCSLA. The Harris Trust court distinguished the facts
before it from those in Sea Robin, 844 F.2d 1202, by pointing
out that the priority dispute did not have an “immediate

10a

Appendix B

bearing on the production of” minerals or “threaten[ ] to
impair the total recovery of the federally-owned minerals
from the reservoir or reservoirs underlying the OCS.” 124
F.R.D. at 119, quoting Sea Robin, 844 F.2d at 1210.

Plaintiff argues that the work of laying and burying the
cable did not involve a search for minerals on, extracting
minerals from, or removing minerals from the OCS and
transferring them to shore. Tennessee Gas, 87 F.3d at 154-55.
Instead, the fiber optic cable system was intended to speed
communications between petroleum platforms in the Gulf
of Mexico and the mainland of the United States. This dispute
over a breach of contract or negligent misrepresentation of
Defendants’ abilities to bury the cable properly and timely
does not threaten the exploitation of minerals in the OCS so
as to confer jurisdiction under the OCSLA.

In opposition to the motion to remand, Defendants assert
that the FiberWeb communications system is intended to
serve as a data and/or communications link to oil and gas
offshore producing platforms, and that the “installation of
equipment [is] integral to” and directly affects the
exploration, development or production of minerals from the
subsoil and seabed of the OCS. Specifically they contend
that “the defined purpose of FiberWeb is to provide broad
band communications in the oil and gas industry offshore,
based on several factors ... including: the aggressive
expansion of the energy industry into the deep waters of the
Gulf of Mexico; the increasing amount of real-time data
generated from seismic wireline and measurement during
drilling activities; the more sophisticated oil and gas
production and process control systems not being deployed

ieee iene

lla

Appendix B

offshore and subsea; the trend to increase automation and
reduce the number of workers assigned to the offshore
production platforms; the need to connect offshore
infrastructure to enterprise computing systems, which
typically operate at higher speeds than legacy networks; the
need to improve compliance with growing regulatory
oversight by the MMS, EPA, OSHA, and other agencies;
and the desire to improve the quality of life for offshore
personnel by delivery of local cable and distance learning
programs.” Opposition to the Motion to Remand (#9) at 4-5.
Defendants argue that the laying and burying of the cable is
a “physical act” performed on the OCS under OCSLA.
Amoco Production Co. v. Sea Robin Pipeline Co., 844 F.2d
1202, 1207 (Sth Cir. 1995); Tennessee Gas Pipeline v.
Houston Casualty Ins. Co., 87 F.3d 150, 154 (Sth Cir. 1996).
Moreover, under OCSLA, the definition of “development”
includes “operation of all onshore suppert facilities,” and
the definition of “production” includes “operation
monitoring” under 43 U.S.C. § 1331(1) and (m), both of
which are design features of FiberWeb. They also claim that
FiberWeb was expressly installed to connect nine Gulf Coast
Oil platforms to land falls at Freeport, Texas and Fourchon,
Louisiana and would allow offshore platforms to be
monitored remotely from locations onshore. Opposition
at 7-8. “Development” and “production” under OCSLA are
broadly defined and to be broadly construed. EP Operating
Ltd. Partnership v. Placid Oil Co., 26 F.3d 563, 568 (Sth
Cir. 1994). Moreover, they point to the Fifth Circuit “but
for” test for determining if a controversy falls under OCSLA,
i.e., if the subject matter of the lawsuit would have occurred
“but for” the subject operations on the OCS. Tennessee Gas
Pipeline, 87 F.3d at 155; Recar v. CNG Producing Co., 853

12a

Appendix B

F.2d 367, 369 (Sth Cir. 1988). They then argue that but for
the operation on the OCS involving the development and/or
production of natural resources, which consists of the laying
and burial of fiberoptic cable, the dispute between the parties
would not have occurred. Thus Defendants insist that the
Court has jurisdiction over this suit under OCSLA.
Furthermore they provide documents obtained from the home
pages and/or websites of PetroCom and Defendants, an
affidavit from Defendant Stolt Offshore Inc.’s Senior Project
Manager Robert Murray about the cable burial project, and
a couple of news articles to support their arguments about
FiberWeb. Finally, they argue that removal is proper under
Hufnagel v. Omega Services Industries, Inc., 182 F.3d 340,
348-49 (Sth Cir. 1999) because the claims here under Texas
or Louisiana ‘aw are adopted as surrogate federal law by
OCSLA, providing original federal jurisdiction. See also
Dennis v. Bud's ~>at Rental, Inc., 987 F. Supp. 948, 951-52
(E.D. La. 1997); Stokes v. Petroleum Helicopters, No. Civ.
A 97-0508, 1997 WL 695557 (E.D. La. 1997).

In a reply to Defendants, Plaintiff reiterates that to show
removal was proper, Defendants must, but fail to, locate the
basis of federal jurisdiction in Plaintiff's petition. Carpenter,
44 F.3d at 365. Nevertheless, Plaintiff argues that the petition
and the documents relied upon by Defendant demonstrate
that OCSLA does not apply to this case and that removal
was improper.

Defendants broadly argue that burying cable relates to
development or production of minerals in the OCS because
the term “development” encompasses all onshore support
facilities and “production” encompasses operation

13a

Appendix B

monitoring, both design features of FiberWeb. Leaving aside
the breadth of Defendants’ definitions, Defendants
emphasize that the burial of the cable did not involve
operation of an onshore support facility or monitoring of a
petroleum platform. They insist that the definition of
“development” does not encompass the construction of a
support facility tangentially related to the production of a
platform. Nor did the burying of the cable involve monitoring
of the removal of minerals, which would bring such activity
within the definition of “production.”

Furthermore, Plaintiff contends, the cases relied upon
by Defendants do-not support removal. In Laredo Offshore,
754 F.2d 1223, the Fifth Circuit held that a dispute over the
construction of a stationary platform on the OCS involved
“development” of minerals in the OCS because Congress
specifically included “platform construction” in the
definition of “development.” 43 U.S.C. § 1331(l). In
EP Operating Ltd. Partnership, 26 F.3d at 565, the Fifth
Circuit reviewed a dispute over ownership of an oil pipeline,
a natural gas pipeline, an offshore platform and related
processing facilities. Plaintiff reasons that OCSLA
jurisdiction over matters involving platforms and pipelines
is explicitly provided for in the definition of “production,”
which includes “those activities which take place after the
successful completion of any means for the removal of
minerals, including such removal ... [and] transfer of
minerals to shore.” 43 U.S.C. § 1331(m). In contrast the
burial of fiber optic cable is not within the definition of
“development” or “production.”

Nor insists Plaintiff does the “but for” test of jurisdiction
apply because in all three cited cases (Hufnagel, Tennessee

l4a

Appendix B

Gas, and Recar), the damage or injuries at issue occurred on
petroleum platforms, which are explicitly cover by OCSLA
and would not have occurred “but for” those platforms.

Finally, Plaintiff maintains, even if suits related to some
support activities of petroleum platforms were covered by
OCSLA, Defendants’ burial of the cable was not a support
activity. Only well beyond the facts alleged here could the
cable potentially be involve in operation monitoring or other
activities potentially related to the development or production
of petroleum. No OCSLA cases support such tortured efforts
to connect a dispute to the development or production of
minerals in OCS. Rather, in the cases either the petition
identifies OCSLA by name or it explicitly indicates that the
dispute related directly to a platform or pipeline. Because
the dispute at hand does not involve the exploration,
development, or production of minerals of the OCS, federal
jurisdiction is lacking and the Court should remand the case
to the 164th Judicial District Court of Harris County, Texas.

This Court observes that state courts have concurrent
jurisdiction over tort and contract issues brought under
OCSLA, so federal courts do not have exclusive jurisdiction.
Gulf Offshore Co. v. Mobil Oil Corp., 453 U.S. 473, 482-84
(1981).

A threshold issue » ere in reviewing Plaintiff's insistence
that his well-pleadea. nplaint alleges only causes of action
_ under state law is whether OCSLA completely preempts state
law or whether, in this nondiversity case, if there is no
complete preemption under OCSLA, Plaintiff as the master
of his complaint is entitled to have this suit remanded to
state court.

15a

Appendix B

Preemption, which is rooted in the Supremacy Clause
of the United States Constitution, Art. VI, cl. 2, may be
express or implied and requires the Court to focus on
Congressional intent. Hetzel v. Bethlehem Stee! Corp.,
50 F.3d 360, 363 (Sth Cir. 1995). If there is no explicit
preemptive language in a statute, as is the case with OCSLA,
Congress’ intent-to supersede state law may be inferred where _
“(t]he scheme of federal regulation may be so pervasive as
to make reasonable the inference that Congress left no room
for the States to supplement it,” because “the Act of Congress
may touch a field in which the federal interest is so dominant
that the federal system will be assumed to preclude
enforcement of state laws on the same subject,” or because
“the object sought to be obtained by federal law and the
character of obligations imposed by it may reveal the same
purpose.” /d. Even if Congress does not completely displace
state regulation in a specific area, it can nullify state law to
the extent that the state law conflicts which federal law, and
a conflict occurs when “compliance with both federal and
state regulation is a physical impossibility, or when state
law stands as an obstacle to the accomplishment and
execution of the full purposes and objectives of Congress.”
Id. In sum, there are three ways that state law can be
preempted: (1) Congress explicitly states its intent that state
law be preempted; (2) the very comprehensive federal scheme
implies congressional intent to preempt state regulation in
the area; and (3) state law either directly conflicts with the
federal law or interferes with the regulatory prograri
established by Congress. Jd.

OCSLA has an unusual provision. Title 43 U.S.C.
§ 1333(2)(A) provides,

16a

Appendix B

To the extent that they are applicable and not
inconsistent with this subchapter or with other
Federal laws and regulations ... the civil and
criminal laws of each adjacent State, now in effect
and hereafter adopted . . . are declared to be the
law of the United States for that portion of the
subsoil and seabed of the outer Continental Shelf,

See also Rodrigue v. Aetna Casualty Surety Co., 395 US.
352, 356 (1969) (concluding that the language of OCSLA
demonstrates that the law to be applied or the OCS is the
federal law of the United States, and that state law is to be
applied only as surrogate federal law and then only after
federal law is applied and only when it is not inconsistent
with the applicable federal law).

In Hufnagel v. Omega Service Industries, Inc., 182 F.3d
340 (Sth Cir. 1999), in which Hufnagel sued for personal
injuries occurring on a fixed platform on the OCS in the
course of his employment, the Fifth Circuit observed that
OCSLA was enacted to provide a federal body of law to
govern operations on the OCS and proclaimed that “OCSLA
is exclusively federal law.” Jd. at 349. The Circuit
pronounced that although OCSLA incorporates aspects of
the laws of adjacent states where those laws are not
inconsistent with OCSLA to fill in any gaps, this incorporated
state law becomes “surrogate federal law” and is “considered
exclusively federal law when applicable under OCSLA.” Jd.,
quoting 43 U.S.C. § 1333(a)(2)(A), and citing Rodrigue,
89S. Ct. at 1838 (“It is evident from this [legislative history]
that federal law is ‘exclusive’ in its regulation of this area,

_

17a

Appendix B

and that state law is adopted only as surrogate federal law.”).
In Hufnagel, the Fifth Circuit concluded that even though
Hufnagel’s petition did not plead OCSLA eo nomine, but
sought imposition of strict liability for a ruinous structure
under the Louisiana Civil Code, it did plead that the events
occurred on a fixed platform on the OCS. It reasoned, “There
is nothing which would make Kerr-McGee’s platform or its
conditions subject to Louisiana law other than OCSLA,
which incorporates this Civil Code provision as “surrogate
federal law.” It further noted that “Hufnagel’s employment
furthered mineral production on the shelf,” that his “injuries
occurred on a stationary drilling platform involved in the
‘exploration, development, or production of minerals on the
shelf,’ ” and thus his claims fell within the jurisdictional grant
of OCSLA. It therefore concluded that removal was proper.°

5. The petition in Hufnagel also alleged unspecified violations
of the Coast Guard and Secretary of the Interior Regulations having
the force and effect of law where the accident occurred [i.e., the
platform].” Jd. The Fifth Circuit construed this reference to
regulations as those issued under the authority of OCSLA, 43 U.S.C.
§ 1333(d)(1) (“The Secretary of the Department in which the Coast
Guard is operating shall have authority to promulgate regulations
... relating to the promotion of safety of life and property on the
artificial islands, installations, and other devices referred to in
subsection (a)... .” /d. Finally the Fifth Circuit noted that “Hufnagel
has consistently acquiesced in . . . [the] characterization of his suit
as including OCSLA claims.” Thus the panel found the complaint
asserted claims under OCSLA.

These facts are clearly distinguishable from those before this
Court in the case sub judice.

18a
Appendix B

Hufnagel demonstrates that the mere pleading of state
law causes of action will not prevent OCSLA from
superseding where the claim falls within the ambit of
OCSLA’s jurisdictional mandate. See also Stokes, 1997 WL
695557, *2 (“Although the plaintiffs did not assert any
OCSLA claims, the Act will nonetheless govern if the
requirements of the statute are satisfied by their
Complaints.”), citing Tennessee Gas, 87 F.3d at 154-55.

Nevertheless, the Fifth Circuit, while describing the
jurisdictional grant of OCSLA as “very broad,” did not
conclude that it was unlimited. Tennessee Gas, 87 F.3d at
154. The link between the disputed activity and an operation
involving the exploration, development, or production of
minerals of the OCS cannot be endlessly attenuated. The
Court agrees with Plaintiff that the causes of action asserted
here, i.e., a breach of contract for failure to perform burial
of a fiber optic cable line and misrepresentations about their
ability to perform this service, do not fall within the ambit
of OCSLA because the dispute does not deal with or affect
except in a most tangential way the operations involving the
exploration, development, or production of natural resources
of the OCS. Ultimately, once FiberWeb is in and operating,
matters relating to the actual communications regarding
production of minerals on the OCS may be within the
jurisdictional grant of OCSLA. The Court concludes that the
actual service of burying that cable, only part of which occurs
in the OCS, by Defendants does not fall within that
jurisdictional mandate. Nor have Defendants convinced this
Court that additional discovery about the cable
communications, as opposed to the act of laying and burying
the cable, will be of any aid.

19a
Appendix B
Accordingly, the Court

ORDERS that Defendants’ motion to extend submission
day and for leave to conduct limited discovery is DENIED.
The Court further

ORDERS that Plaintiff's motion to remand this case to
the 164th Judicial District Court of Harris County, Texas is
GRANTED. Finally, Defendants’ motion for expedited
consideration is MOOT.

SIGNED at Houston, Texas, this 7th day of June, 2000.

s/ Melinda Harmon
MELINDA HARMON
UNITED STATES DISTRICT
JUDGE

20a

APPENDIX C — PER CURIAM ORDER OF THE

UNITED STATES COURT OF APPEALS FOR THE

FIFTH CIRCUIT DENYING PETITION FOR

RECONSIDERATION AND REHEARING DATED
AND FILED AUGUST 18, 2000

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

No. 00-20582

In Re: STOLT COMEX SEAWAY HOLDINGS INC.;
STOLT COMEX SEAWAY INC.;
STOLT OFFSHORE INC.

Petitioners

Petition for Writ of Mandamus to the United States
District Court for the
Southern District of Texas, Houston

ON PETITION FOR RECONSIDERATION
AND REHEARING EN BANC

Before WIENER, EMILIO M. GARZA and PARKER,
Circuit Judges.

PER CURIAM:

(“) The Petition for Reconsideration is DENIED and no
member of this panel nor judge in regular active service on
the court having requested that the court be polled on

2la

Appendix C

Rehearing En Banc, (Feb. R. App. P. and STH Cir. R. 35) the
Petition for Rehearing En Banc is also DENIED.

*” * *
ENTERED FOR THE COURT:

s/ [illegible]
United States Circuit Judge

22a

APPENDIX D — UNITED STATES CONSTITUTION,
ARTICLE III, SECTION 2

ARTICLE III

Section 2. The judicial Power shall extend to all Cases,
in Law and Equity, arising under this Constitution, the Laws
of the United States, and Treaties made, or which shall be
made, under their Authority; — to all Cases affecting
Ambassadors, other public Ministers and Consuls; — to all
Cases of admiralty and maritime Jurisdiction; — to
Controversies to which the United States shall be a Party;
— to Controversies between two or more States; — between
a State and Citizens of another State; — between Citizens
of different States; — between Citizens of the same State
claiming Lands under the Grants of different States, and
between a State, or the Citizens thereof, and foreign States,
Citizens or Subjects. ;

23a

APPENDIX E — 28 U.S.C. § 1441(b)

§ 1441. Actions removable generally

x * *

(b) Any civil action of which the district courts have original
jurisdiction founded on a claim or right arising under the
Constitution, treaties or laws of the United States shall be
removable without regard to the citizenship or residence of
the parties. Any other such action shall be removable only if
none of the parties in interest properly joined and served as
defendants is a citizen of the State in which such action is
brought.

24a

APPENDIX F — 28 U.S.C. § 1447(c) and (d)

§ 1447. Procedure after removal generally

*- * *

(c) A motion to remand the case on the basis of any defect
in removal procedure must be made within 30 days after the
filing of the notice of removal under section 1446(a)
[28 USCS § 1446(a)]. If at any time before final judgment it
appears that the district court lacks subject matter
jurisdiction, the case shall be remanded. An order remanding
the case may require payment of just costs and any actual
expenses, including attorney fees, incurred as a result of the
removal. A certified copy of the order of remand shall be
mailed by the clerk to the clerk of the State court. The State
court may thereupon proceed with such case.

(d) An order remanding a case to the State court from which
it was removed is not reviewable on appeal or otherwise,
except that an order remanding a case to the State court from
which it was removed pursuant to section 1443 of this title
shall be reviewable by appeal or otherwise.

25a

APPENDIX G — 43 U.S.C. § 1333(a)(2)(A)

§ 1333. Laws and regulations governing lands

(a) Constitution and United States laws; laws of adjacent
States; publication of projected State lines; international
boundary disputes; restriction on State taxation and

jurisdiction.

* * *

(2)(A) To the extent that they are applicable and
not inconsistent with this Act or with other Federal
laws and regulations of the Secretary now in effect
or hereafter adopted, the civil and criminal laws of
each adjacent State riow in effect or hereafter
adopted, amended, or repealed are hereby declared
to be the law of the United States for that portion of
the subsoil and seabed of the outer Continental Shelf,
and artificial islands and fixed structures erected
thereon, which would be within the area of the State
if its boundaries were extended seaward to the outer
margin of the outer Continental Shelf, and the
President shall determine and publish in the Federal
Register such projected lines extending seaward and
defining each such area. All of such applicable laws
shall be administered and enforced by the
appropriate officers and courts of the United States.
State taxation laws sha!i not apply to the outer
Continental Shelf.

26a

APPENDIX H —— 43 U.S.C. § 1349(b)(1)(A)

§ 1349. Citizens suits, jurisdiction and judicial review

* * *

(b) Jurisdiction and venue of actions. (1) Except as
provided in subsection (c) of this section, the district courts
of the United States shall have jurisdiction of cases and
controversies arising out of, or in connection with (A) any
operation conducted on the outer Continental Shelf which
involves exploration, development, or production of the
minerals, of the subsoil and seabed of the outer Continental
Shelf, or which involves rights to such minerals, .. . .

x* * © *

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386014_1365%3A1. Public record. Not legal advice.
