Petition for Writ of Certiorari — Allen v. Texaco Inc.

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Supreme Court, U.S.

FILEC

(YO2 2385 aus 132002

Supreme Court of the Hnited States

PHILLIP ALLEN,

Petitioner,

TEXACO INC.,

On PETITION FOR A Writ OF CERTIORARI TO THE

Unrrep States Court OF APPEALS FOR THE FIFTH CIRCUIT

PETITION FOR WRIT OF CERTIORARI

Lawrence D. Wi a

Counsel of ———

Wiedemann & Wiedemann

821 Baronne Street

New Orleans, LA 70113

(504) 581-6180

Attorneys for Petitioner

Cueev & Tavior ¢ (202) 39893-41416

i

QUESTIONS PRESENTED

Whether, or not, the District Court, and the Court of

Appeals, committed reversible error in granting a

summary judgment depriving plaintiff/applicant of his

day in Court by disregarding the written contract

between Texaco and Danos & Curole, Inc.,

designating plaintiff/applicant to be an independent

contractor, non-employee, of Texaco, Inc., and not

under the conirol or supervision of Texaco, and

concluding that the contract did not create a material

issue of fact under the Fifth Circuit, and Louisiana

State Court, precedent in Alday v. Patterson Truck

Line, Inc., 750 F.2d 375, 378 (5" Cir. 1985); Dugas v.

Pelican Construction Company, Inc., 481 F.2d 773

(5" Cir. 1973), writ denied, 414 U.S. 1093, 38 L.Ed.

550, 94 S.Ct. 724 (1973); and Kirkland v. Western

Electric Co., 296 So.2d 350 (La. 4” Cir., 1974), writ

denied, 302 So.2d 19 (La. S.Ct., 1974).

Can an alleged “borrowing employer” clandestinely

select an alleged “borrowed servant” for ultra

hazardous work not envisioned in the employee’s

employment contract with his general employer, or

the general employer’s contract with the alleged

“borrowing employer”, and thereby unjustly deprive

the employee of his common law right of action for

damages, and at the same time inflict on the general

employer greater exposure under the applicable

‘compensation act; or does such conduct vitiate any

borrowed servant status previously created?

The District Court and the Court of Appeal erred in

failing to apply Louisiana law to this Outer

Continental Shelf Land Act matter.

PARTIES TO THE PROCEEDING

Petiti

PHILLIP ALLEN, a person of the full age of majority

and a resident of Morgan City, Louisiana. Petitioner

is an individual and has no corporate affiliations.

Respondents

TEXACO, INC., defendant

DANOS & CUROLE MARINE CONTRACTORS, INC.,

Intervenor

THE GRAY INSURANCE COMPANY, the insurer of

Danos & Curole Marine Contractors, Inc., Intervenor

ili

TABLE OF CONTENTS

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STATUTORY PROVISIONS INVOLVED ..........cssssssssssssssssesssssscesessesecees 1

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APPENDIX

DECISION DATED MAY 15, 2902, FROM THE UNITED

STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT............ la

- JUDGMENT DATED JUNE 14, 2001, FROM THE UNITED

STATES DISTRICT. COURT, EASTERN DISTRICT OF

ORDER AND REASONS ENTERED ON JUNE 5, 2001, BY

HONORABLE SARAH S. VANCE, UNITED STATES

EES EE cnet ene a ee da

TEXACO, INC.’S MASTER WORK AGREEMENT WITH

INDEPENDENT CONTRACTOR .....ccsccccssocssscssssecsecsscssecsecsecescsees 5a

DARYL LANGLOIS DEPOSITION EXCERPTS ........c..sesssesseesseeens 39a

RONALD RATCLIFF DEPOSITION EXCERPTS...........-s:ssesseeeee: 65a

SCOTT NIMELSTEIN DEPOSITION EXCERPTS .........s:ssesseeseees 78a

iv

TABLE OF AUTHORITIES

FEDERAL CASES

ALDAY V. PATTERSON TRUCK LINE, INC., 750 F.2D 375,

a es SIE isvitenniedtainieciliindiiinniiniabibaiicenainaie passim

BROWN V. UNION OIL Co., 984 F.2D 674 (5TH Cir. 1993)........... 12

CHEVRON OIL Co. V. HUSON, 404 U.S. 97, 92 S.CT. 349,

ee Re I CIT TD sciipeneiincicsdadereneennebicienbinenencaantonconniepnaniatiene 16

COOLEY V. SLOCUM, 313 SO.2D 606 (LA. 3RD CIR. 1975)............ 17

DUGAS V. PELICAN CONSTRUCTION COMPANY, INC., 481

F.2D 773 (5TH CIR. 1973), WRIT DENIED, 414 US.

1093, 38 L.ED. 550, 94 S.CT. 724 (1978) ........ eee passim

KIRKLAND V. WESTERN ELECTRIC CO., 296 SO.2D 350

(LA. 4TH CIR., 1974), WRIT DENIED, 302 SO.2D 19 (LA.

Fis MAW OAD icepsitAcceiey shine nnieeeneiniiedenetindchestininsaiedatemniie 8, 16, 17

TS, GIS © a Oe Maeva cieiensicisnnstnesiechnntasseiieimsninetiadacessanngl 12

RUIZ V. SHELL OIL Co., 413 F.2D 310 (5TH CIR. 1969).......... 13, 15

WEST V. KERR-MCGEE CORP., 765 F.2D 526-531, (5TH

CR. FER acnpnccovsniistepnesieciisnnisahiebiceehaterasleiahibbonntiiocadeisanialiedeieinine 12

FEDERAL STATUTES

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OTHER AUTHORITIES

Federal Rules of Civil Procedure, Article 56(c)................0+. 8,9

]

OPINIONS BELOW

On June 5, 2001, Honorable Sarah S. Vance, United

States District Judge, Eastern District of Louisiana, New

Orleans Division, entered an order and reasons in which she

granied the motion for summary judgment filed by

defendant/respondent, Texaco, Inc., dismissing

plaintiff/applicant’s complaint with prejudice. (App. 4a)

On June 15, 2001, Honorable Sarah S. Vance, United

States District Judge, Eastern District of Louisiana, New

Orleans Division, entered judgment dismissing

plaintiff/applicant’s complaint with prejudice. (App. 3a)

On May 15, 2002, the United States Court of Appeals,

Fifth Circuit, rendered a per curium opinion affirming the

judgment of the District Court. (App. 1a)

JURISDICTION

The United States Court of Appeals for the Fifth

Circuit entered judgment on May 15, 2002. This petition for

writ for certiorari is filed within the prescribed period of

ninety (90) days after the May 15, 2002, Judgment.

The jurisdiction of this Honorable Court is invoked

under the provisions of 28 U.S.C. §§1254(1) and 2106.

STATUTORY AND REGULATORY PROVISIONS

Federal Rules of Civil Procedure, Article 56 (c)

pertaining to motions for summary judgment, and 43 U.S.C.

§§ 1331-1356, the Outer Continental Shelf Lands Act.

STATEMENT OF THE CASE

Phillip Allen, a forty-year old African-American male

and veteran of the United States Navy, is a native of Morgan

City, Louisiana. He was injured on September 9, 1998, while

in the course and scope of his employment as a production

operator with Danos & Curole. Allen had been employed by

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Danos & Curole for approximately two years and in addition

had nine years of offshore work experience with Shell Oil.

On September 9, 1998, he was earning $12.00 an hour

and worked a seven days on, seven days off, “hitch”.

The subject-matter accident occurred on September 9,

1998, while Allen was working on Texaco, Inc.’s oil

production platform, the West Cameron 643A. The platform

was located in the Gulf of Mexico, on the Outer Continental

Shelf, off the Coast of Louisiana.

On September 8, 1998, Texaco began evacuating all

non-essential personnel from its offshore rigs over a large

area in the central Gulf of Mexico extending from the rigs

southeast of Galveston, Texas, to the rigs southeast of New

Iberia, Louisiana, a block approximately 200 miles east and

west and 150 miles north and south. The evacuation was

precipitated by the approach of a dangerous tropical storm

named “Frances.” All rigs in the aforedescribed area were

evacuated by September 9, 1998, with the exception of West

Cameron 643A. Plaintiff/applicant, Phillip Allen, without his

knowledge or consent and without the knowledge and

consent of his general employer, Danos & Curole, was

designated by Texaco, Inc. as an essential person to remain

on West Cameron 643A with a Texaco employee, James

Sigur.

Texaco intended to evacuate Allen and Sigur after

they evacuated all of the rigs north, south, east, and west of

West Cameron 643A. Unfortunately, Texaco waited too long

and was advised by their helicopter subcontractor that it was

impossible to evacuate Allen and Sigur because West

Cameron 643A was in the midst of the storm when Texaco

finally decided to effectuate their evacuation.

Allen and Sigur were the only two employees left in

the Western Gulf area to face the wrath of “Frances”.

About 1:00 p.m. on September 9, 1998, a sump pump

on the plus 12 deck, ‘just above the sea_ surface,

malfunctioned and Allen and Sigur went down to attempt to

fix it. While down on the plus 12 deck, Allen was struck by a

25 foot wave and was almost washed overboard at which

3

time he, and Sigur, abandoned the repair effort because of the

hazardous circumstances. However, at approximately 5:00

p.m. a warning horn went off on the rig indicating that

everything on the rig, (lights, fuel, water, etc.), would be shut

down if the sump pump was not fixed. Allen and Sigur went

down a second time to the plus 12 deck and discovered that

the sump pump was leaking. Allen got a 36-inch pipe wrench

and was attempting to tighten the coupling on the sump

pump to stop the leak when he slipped due to the heavy rain,

wind, and difficulty gripping the wrench. He fell back against

the pipe striking his back and head. He subsequently

underwent lumbar surgery and is totally disabled.

Phillip Allen was an experienced operator before he

went to work for Danos & Curole. He had done the same job

with Shell during the 10 years that he had worked for Shell.

When he first went to work for Danos & Curole there was not

an operator job open with Texaco. For seven months he

worked under Charles Phillips, a Danos & Curole operator,

on another Texaco rig. Thereafter, an operator job opened at

West Cameron 643A and he was able to perform all of the

tasks of an operator without supervision.

Danos & Curole had entered into an agreement with

Texaco, Inc. on March 23, 1987, described as “Texaco, Inc.

Master Work Agreement with Independent Contractor.”

(Bold emphasis supplied). (Appendix Exhibit D, pp. ).

The - Master Work Agreement contains three

obligatory clauses required of Danos & Curole by Texaco,

Inc., to-wit:

1. “d. Contractor’s Status. The parties

acknowledge that contractor is an

independent contractor. As_ such,

Texaco shall have no voice in the

discharge, supervision, or control of

contractor's employees, representatives,

or subcontractors or in fixing their

number, compensation, or hours of

service. Texaco shall have no right to

4

control the manner of contractor’s

performance but Texaco and its

representatives shall have the right to

inspect the work performed and make

suggestions and comments thereon.

“2a. Indemnity Contractor covenants and

agrees to fully indemnify, defend, and hold

Texaco, its subsidiaries, and affiliated

companies, their agents, employees, and

persons for whom each is responsible.

(Hereafter, collectively and individually,

called ‘Texaco’) free and harmless from

and against any and all actions, causes of

action, claims, costs (including attorney's

fees and court costs), damages, judgments,

or liabilities in connection therewith that

may be asserted by contractor, its agents,

employees, subcontractors, and persons

for whom contractor is responsible

(hereafter, collectively and individually,

called ‘contractor’), Texaco’s agents,

employees, and persons for whom each is

responsible, or any third party on account

of death or personal injury of any person,

caused by, or arising out of, or in any way

incidental to, or in connection with the

performance of the work hereunder,

except that if Texaco shall be solely at

fault, or liable, whether under a theory of

negligence, strict liability, or combination

thereof, in factually and proximately

causing the particular death or injury, then

this indemnity shall not apply. In the event

that contractor and Texaco shall be

concurrently at fault or liable, whether

under a theory of negligence, strict liability

or combination thereof, then contractor

shall indemnify, defend, and hold Texaco

free and harmless from and against any

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and all actions, causes of action, claims,

costs (including attorney's fees and Court

costs) damages, judgments, or liabilities

except to the extent of Texaco’s

comparative fault or liability, whether

such fault or liability is based on a theory

of negligence, strict liability, or a

combination thereof.

3. “G. Safety. Contractor shall take all

measures and precautions necessary or

proper to provide safe working conditions

and to prevent any accident in connection

with the performance of work hereunder.

Contractor shail have the sole

responsibility for the safety of its

employees and subcontractors, as well as

their performance in accordance with the

appropriate safety practices.” (Bold

emphasis supplied).

Scott Nimelstein, the Texaco manager of safety health

and environment, responsible for field operations on the

production side covering the Gulf Coasts of Alabama,

Louisiana, and Texas, acknowledged that Texaco, in the case

of a Danos &-Curole worker, like Phillip Allen, did not: issue

payroll checks, deduct withholding taxes, Social Secucity, or

income taxes; provide medical coverage; provide retirement

benefits; provide 401k programs; or permit participation in its

employee stock program, like it did for its direct employees.

(Appendix Exhibit E, pp. 61-62 of Nimelstein deposition).

Mr. Tommy L. Mathews, Jr., the production supervisor

for Texaco in the deep west, the area in question at the time

of the accident, testified that Phillip Allen was initially listed

on the evacuation manifest as a non-essential person and for

some reason, unknown to him, his name was scratched off of

the evacuation manifest list. (Appendix Exhibit F, pp. 36, 37,

Matthews deposition). He also testified that Texaco, without

6

the knowledge of the employee or his general employer,

could arbitrarily designate employees of a subcontractor as

an essential employee and require them to man a Texaco rig

in a storm. This alleged right, and authority, was not

contained in the contract between Texaco and Danos &

Curole. (Appendix Exhibit F, pp. 4849, Matthews

deposition). Allen and a Texaco employee were the only two

people left offshore in the Western Gulf during “Frances”.

They were to be evacuated but the weather deterioration

prevented their evacuation. (Appendix Exhibit F, pp. 54, 55,

and 57, Mathews deposition).

Ronald Ratcliff, Danos & Curole’s account manager,

testified in deposition that he had day-by-day concern for his

employees’ safety and sought to avoid their exposure to

hazardous conditions. (Appendix Exhibit G, p. 49, Ratcliff

deposition). If it came to his attention that a Danos & Curole

employee had been put in danger, the Danos & Curole

employee would be removed from the job pursuant to their

company policy. (Appendix Exhibit G, p. 141, Ratcliff

deposition).

- When bad weather threatened Texaco’s platforms,

Ratcliff would contact Texaco to determine whether, or not,

Danos & Curole’s employees had been sent in, or remained

out in the Gulf. (Appendix Exhibit G, p. 17, Ratcliff

deposition). He would then call the platforms directly and

speak directly with his employees. (Appendix Exhibit G pp.

18, 21, Ratcliff deposition). He would even suggest that

Texaco evacuate Danos & Curole’s employees. (Appendix

Exhibit G p. 32, Ratcliff deposition).

Texaco, Inc. did not control how Phillip Allen did his

work, nor would it train him to do it. There was no

agreement or understanding for Texaco, Inc. to provide a

supervisor or foreman to oversee the details of Allen’s work.

Instead, Allen would get a list of assignments from Texaco

and then go about his work with no supervision. In short,

Allen, from his 10 years as an operator for Shell and his two

years with Danos & Curole, knew what needed to be done

and Texaco, Inc. would merely monitor the _ results.

(Appendix Exhibit G, pp. 71-73, Ratcliff deposition).

7

On September 9, 1998, because of his concerns for his

own safety, Phillip Allen had several conversations with

Daryl Langlois, Danos & Curole’s personnel coordinator at

the time. (Appendix Exhibit H, pp. 20, 21, Langlois

deposition). Langlois spoke with Allen directly and not with

any Texaco, Inc. personnel. (Appendix Exhibit H. p. 94,

Langlois deposition). When Allen told him that he had been

outside on the platform working in the storm, Langlois told

Allen to go inside and remain there and put on his life jacket.

He recognized that working on the +10 deck in a storm was

dangerous. (Appendix Exhibit H, p. 38, Langlois deposition).

(Appendix Exhibit H, pp. 20, 31, Langlois deposition). He

then told Allen to remain inside 643A and to refuse any

order or request by any Texaco, Inc. employee to the

contrary. (Appendix Exhibit H, p. 40, Langlois deposition).

After speaking with Allen, Langlois tried repeatedly to

contact Texaco, Inc. and have Allen evacuated to safety.

(Appendix Exhibit H, p. 21, Langlois deposition).

Employees of Danos & Curole were told to call and

report if they were exposed to any danger and that’s what

Phillip Allen did. (Appendix Exhibit H, p. 42, Langlois

deposition).

Langlois was unaware of any agreement, contract, or

other understanding which anticipated that Texaco, Inc.

would supervise or instruct Allen in how to go about his

work. (Appendix Exhibit H p. 72, Langlois deposition).

ARGUMENT -

I.

WHETHER, OR NOT, THE DISTRICT COURT,

AND THE COURT OF APPEALS, COMMITTED

REVERSIBLE ERROR IN GRANTING A

SUMMARY JUDGMENT DEPRIVING

PLAINTIFF/APPLICANT OF HIS DAY IN COURT

BY DISREGARDING THE WRITTEN CONTRACT

BETWEEN TEXACO AND DANOS & CUROLE,

INC. DESIGNATING PLAINTIFF/APPLICANT

TO BE AN INDEPENDENT CONTRACTOR,

NON-EMPLOYEE, OF TEXACO, INC. AND NOT |

UNDER THE CONTROL OR SUPERVISION OF

TEXACO AND CONCLUDING THAT THE

CONTRACT DID NOT CREATE A MATERIAL

ISSUE OF FACT UNDER THE FIFTH CIRCUIT,

AND LOU'TSIANA STATE COURT,

PRECEDENTS IN Alday v. Patterson Truck

Line, Inc., 750 F.2d 375, 378 (5" Cir. 1985);

Dugas v. Pel. can Construction Company, Inc.,

481 F.2d 773 (5" Cir. 1973), writ denied, 414

U.S. 1093, 38 L.Ed. 550, 94 S.Ct. 724 (1973); and

Kirkland v. Western Electric Co., 296 So.2d 350

(La. 4” Cir., 1974), writ denied, 302 So.2d 19

(La. S.Ct. 1974).

The District Court granted Texaco’s FRCP Rule 56(c)

motion for summary judgment on the eve of trial by jury

dismissing plaintiff/applicant’s suit, with prejudice. The

United States Fifth Circuit Court of Appeal in a two-page per

curium opinion, acknowledging that its precedent on the

Master Work Agreement “creates an issue of material fact on

the borrowed servant issue,” went on to conclude that

“undisputed” facts relating to the borrowed servant factors

point "so strongly toward” a borrowed servant relationship

that summary judgment was appropriately granted despite

contract language purporting to limit Texaco’s control over

Allen.

9

FRCP Rule 56(c) states, in pertinent part:

, , » the judgment sought shall be rendered

forthwith if the pleadings, depositions,

answers to interrogatories and admissions on

file, together with the affidavits, if any, show

that there is no genuine issue as to any

material fact and that the moving party is

entitled to a judgment as a matter of law.”

(Bold emphasis added).

The Fifth Circuit’s conclusion that the facts “point so

strongly” does not rise to the level of “no genuine issue”,

literally, or factually, as required by FRCP 56(c).

Pretermitting, a decision of the material facts at issue in the

verified statement of facts, the Court’s reference to its own

precedent in Alday v. Patterson Truck Line, Inc., 750 F.2d

375, 378 (5" Cir. 1985), and its uncited progeny, Dugas v.

Pelican Construction Company, Inc., 481 F.2d 773 (5" Cir.

1973), writ denied, 414 U.S. 1093, 38 L.Ed. 550, 94 S.Ct. 724

(1973), stand for the proposition that summary judgment was

improvidently rendered in this case because of the contract

between Texaco and Danos & Curole designating Phillip

Allen to be an independent contractor and not an employee

of Texaco and not under Texaco’s supervision and control.

In Dugas v. Pelican Construction Company, Inc.,

supra, rendered by three-deceased titans of the Court,

Honorable John R. Brown, John Minor Wisdom, and Robert

Ainsworth, the Court concluded, at page 778:

“While numerous factors must be considered

to determine whether an individual is a

borrowed servant or employee of another,

essential to that relationship is some type of

agreement, written or verbal, formal, or

informal, between the general employer

and the temporary employer evidencing

an intention to create that relationship.

There is nothing in the record to indicate that

Pelican or Union either intended or desired to

10

establish 2 borrowed employee relationship

between Union and the men Pelican supplied.

The written contract itself negates such an

intention. The pertinent clause provides Gat

‘In the performance of the work

herein contemplated,

CONTRACTOR [Pelican] is an

independent contractor, with

the authority to control and

direct the performance of the

details of the work, Union

being interested only in the

results obtained, but the work

contemplated herein shall meet

the approval of Union.

CONTRACTOR specifically

agrees that all _ persons

employed by CONTRACTOR in

performing the work covered

by this contract or by

CONTRACTOR’S

subcontractors, are not the

employees of Union for any

purpose whatsoever. . .”

If anything, the Master Agreement between Texaco

and Danos & Curole herein, more emphatically emphasizes

the independent contractor, non-employee, relationship

between employees of Danos & Curole than in the Dugas v.

Pelican Construction, Inc. case, supra.

The case came before the Court in Dugas v. Pelican

Construction Inc., supra, by appeal from a final judgment of

the District Court and not from the granting of a motion for

summary judgment.

In Alday v. Patterson Truck Line, Inc., 750 F.2d 375

(5" Cir. 1985), cited by the Fifth Circuit and authored by the

late Honorable Frank Tate, the Court reversed a District

11

Court granting of summary judgment. The Court, at page 376,

recognized, as did the Dugas court, supra, the acquiescence

of the employee as a significant factor in determining

whether, or not, a borrowed servant relationship was in

existence. The Court, at page 377, also like the Dugas Court,

recognized the special weight to be given to the contractual

agreement between the payroll employer and the borrowing

employer expressly negating a borrowed servant relationship.

The Court in Alday v. Patterson Truck Line, Inc.,

supra, had under consideration a contract not as definitive as

to elimination of independent contractor status, as the

contract involved herein. The Court in reversing the Lower

Court summary judgment, at page 378, made the following

pertinent observation:

“On full development of the evidence, it is

true, a trier of fact might find that, in actual

working operations, the parties ignored their

solemn contract. On the basis at least of the

sparse factual showing here, however, we are

unable to say that no factual issue is raised by

these contractual provisions, which ‘negate’

any intention on the part of the employers to

establish a borrowed employee relationship.

Dugas, supra, 581 F.2d at 778 (where a similar

agreement was held to negate a borrowing

employee relationship, under the facts there

present). These contractual provisions

nevertheless raise an issue of fact as to Alday’s

status as an alleged borrowed employee of

Patterson that precludes summary judgment,

despite the inferences to the contrary that may

be drawn from the unopposed affidavit of

Atchafalaya’s president and the observations

of Alday himself as to his working conditions

on his single day at work.”

Justice Tate went on to point out the paradox of not

holding the contracting parties to their agreement. At page

378, he pointed out the well-reasoned impetus for the Court’s

12

holding, as follows:

“This may perhaps be more readily seen if a

converse situation is posed. If a third party

was injured by Alday’s tort on Patterson’s

premises, and sought to hold Patterson liable

under respondeat superior as_ Alday’s

borrowing employer such third party plaintiff

could not secure a summary judgment holding

Patterson liable simply because of a self-

serving and conclusory” affidavit by .

Atchafalaya that, contrary to the formal

contract between Atchafalaya and Patterson,

Atchafalaya had relinquished control of Alday

to Patterson. . .”

Likewise, had Phillip Allen negligently injured a third

party and that third party was suing Texaco for damages

under respondeat superior, is there any question but that

Texaco would be hiding behind the contract and seeking

summary judgment.

Failing to give effect to the contract as was done by

the Courts in Alday v. Patterson, supra, and Dugas uv.

Pelican, supra, allows Texaco to take a “heads I win, tails you

lose” position toward subcontractor employees and third

persons.

The Fifth Circuit in Brown v. Union Oil Co., 984 F.2d

674 (5" Cir. 1993) recognized that borrowed servant status

may be a “matter of law” or a “matter of fact”. The Court, at

page 677, opined:

“The issue of borrowed employee status is a

‘matter of law’ for the District Court to

determine, Melancon, 834 F.2d at 1244, but

some cases involve factual disputes on the

issue of borrowed employee status and require

findings by a fact-finder. See Id. at 1245n13;

West v. Kerr-McGee Corp., 765 F.2d 526-531,

(5" Cir. 1985); Alday v. Patterson Truck Line,

Inc., 750 F.2d 375, 378 (5" Cir. 1985). In

13

Melancon, West, and Alday, factual findings

were necessary concerning the _ third

borrowed employee factor —- — whether the

original employer and borrowing employer

had an understanding or agreement on the

issue of employee status .. .” (Bold emphasis

added).

Even in Ruiz v. Shell Oil Co., 413 F.2d 310 (5" Cir.

1969), the cornerstone case on borrowed servant status, the

Court, at page 313, stressed the significance of an agreement:

“Although a formal agreement between the

two employees’ is not _— considered

indispensable to the borrowed _ servant

relationship, the very terms ‘borrowed’ and

‘loaned’ connote some type of agreement,

understanding, or meeting of the minds

between the borrower and the lender. . .”

The Master Agreement negates Danos & Curole’s

relinquishment of “control”, the essential factor in a

determination of borrowed servant status and, likewise,

negates Texaco’s “control”. Since “control” is the seminal

factor in Ruiz v. Shell Oil, supra, and “control” has been

contractually eliminated by Texaco and Danos & Curole how

can one conclude that there is not a material issue of fact at

issue for determination by a Jury under the aforecited

jurisprudence and contract.

Therefore, it is respectfully submitted that the

contract between Texaco and Danos & Curole is binding

between themselves, and Phillip Allen under that contract is

an independent contractor and not a borrowed servant.

Accordingly, the criteria of Ruiz v. Shell Oil Co., 413 F.2d 310

(5" Cir. 1969), for determination of borrowed servant status

does not enter into consideration unless there is a third party

claim.

14

Il.

CAN AN ALLEGED “BORROWING EMPLOYER”

CLANDESTINELY SELECT AN ALLEGED

“BORROWED SERVANT” FOR ULTRA

HAZARDOUS WORK NOT ENVISIONED IN THE

EMPLOYEE’S EMPLOYMENT CONTRACT WITH

HIS GENERAL EMPLOYER, OR THE GENERAL

EMPLOYER’S CONTRACT WITH THE ALLEGED

“BORROWING EMPLOYER”, AND THEREBY

UNJUSTLY DEPRIVE THE EMPLOYEE OF HIS

COMMON LAW RIGHT OF ACTION FOR

DAMAGES, AND AT THE SAME TIME INFLICT

ON THE GENERAL EMPLOYER GREATER

EXPOSURE UNDER THE APPLICABLE

COMPENSATION ACT OR DOES SUCH

CONDUCT VITIATE ANY BORROWED SERVANT

STATUS PREVIOUSLY CREATED?

The Master Work Agreement between Texaco and

Danos & Curole provides:

“.. . CONTRACTOR (Danos & Curole) shall

have the sole responsibility for the safety of its

employees and subcontractors, as well as their

performance in accordance with the

appropriate safety practices ...” (Appendix

Exhibit D, pp. ).

Nothing in the agreement authorizes Texaco to

subject Danos & Curole employees to an ultra hazardous

work environment. As a matter of fact the only clause in the

agreement dealing with working conditions is_ that

hereinabove placing the responsibility squarely on the

shoulders of Danos & Curole. How then can Texaco not be

required to notify Danos & Curole that the status of its

employee has been changed to “essential”, and one of two in

the Western Gulf arbitrarily, and clandestinely, chosen to face

the hazards of a storm, “Francis”, severe enough to require

massive evacuation?

a

If a “borrowed servant” status can be created by a

meeting of the minds; can it not then be violated by a breach

that strikes at the very foundation of the relationship?

In the preceding argument we have stressed the

necessity for an agreement between the general employer

and the borrowing employer and, obviously, the general

employer herein cannot be held to have been in agreement

with Texaco’s decision. This is made abundantly clear by the

deposition testimony of Daryl Langlois, Danos & Curole’s

personnel coordinator, who upon learning that his employee,

Phillip Allen, was still on the Texaco platform in the middle

of the storm, ordered Phillip Allen to stay inside and to

refuse any order or request from Texaco, or its

employees to the contrary. Mr. Langlois then repeatedly

tried to contact Texaco to effectuate Allen’s evacuation to

safely. Is there any doubt who was in “control” at this time

under Ruiz v. Shell Oil Co., 413 F.2d 310 (5" Cir. 1969). Any

status that existed prior to that time was terminated.

In Dugas v. Pelican, supra, the Court went on to point

out another very significant and often overlooked requisite of

a borrowed servant relationship, namely, acquiescence of the

employee who, after all, has a vested interest in determining

whether, or not, to accept the working conditions of the

borrowing employer.

The Court, at page 778, made the following pertinent

observation: _

“Other traditional factors generally indicative

of the borrowed employee relationship, and

absent here, are ‘acquiescence by the

[employee] that he be employed’ by the

[temporary employer]’. . .”

More importantly, there was never any acquiescence

by plaintiff/applicant to the danger to which Texaco exposed

him, without his “consent” and without the “consent” of his

employer.

16

The Court in Alday v. Patterson Truck Line, Inc.,

supra, at p. 375, N5, emphasized that the emp!ovee’s

acquiescence can only be achieved when the employee

appreciates the danger associated with the work to which he

is assigned.

If Texaco had told Phillip Allen that he was going to

be left on one of their platforms in a dangerous storm, he

would have been entitled to refuse the employment and ask

his general employer to send him to a less hazardous

employment. He was not given that opportunity and he

cannot be made to acquiesce in a hazard of which he has no

knowledge. Such a conclusion would relegate him to a

kidnap-like status, rather than an employee status.

Ill.

THE DISTRICT COURT AND THE COURT OF

APPEAL ERRED IN FAILING TO APPLY

LOUISIANA LAW UNDER THE OUTER

CONTINENTAL SHELF LANDS ACT.

Under the Outer Continental Lands Act, 43 U.S.C.

§§1331-1356, Louisiana Law applies to the Texaco 643A

offshore platform. 43 U.S.C. §1333(a)(2).

This Court in Chevron Oil Co. v. Huson, 404 U.S. 97,

92 S.Ct. 349, 30 L.Ed.2d 296 (1971), acknowledged that the

laws of the adjacent state, Louisiana herein, shall apply to the

extent that they are applicable and not inconsistent with

applicable Federal laws.

The Louisiana law, regarding the effect of a contract

between general employer and the borrowing employer

stipulating employee status, is identical to that laid down by

the Fifth Circuit in Alday v. Patterson Truck Line, Inc.,

supra, and Dugas v. Pelican Construction Company, Inc.,

supra. In Kirkland v. Western Electric Co., 296 So.2d 350 (4"

Cir. 1974), writ denied, 302 So.2d 19 (La. 1974), the Court, at

page 353, stated:

“Clearly the contract between Western

Electric and Private Patrol is the law

17

between these parties and they are bound

between themselves by their agreement

that the guard will be considered the employee

of Private Patrol at all times during the

performance of his duties, but by contract

these parties cannot fix the status of that

guard with respect to rights belonging to and

obligations owed to third parties who are not

in any way parties to the contract.” (Bold

emphasis supplied).

Interestingly enough the Louisiana Court took care of

the third party paradox raised by Judge Tate in Alday v.

Patterson Truck Lines, Inc., supra, by exempting third

parties from the contract.

Under Louisiana law there is also a presumption that

the general employer retains control and remains ‘liable for

the negligent acts of his employees. If the general employer

seeks to establish that his employee has become the

“borrowed employee”, or an employee pro hac vice, of

another, he must establish by a preponderance of the

evidence that the employee not only has been loaned and is

under the control of the borrowing employer but also that the

relationship of master and servant which therefore existed

between the general employer and the employee has been

suspended. See Cooley v. Slocum, 313 So.2d 606 (La. 3” Cir.

1975).

Texaco cannot overcome its contractual agreement as

to the status of Danos & Curole employees and cannot meet

the Cooley v. Slocum, supra, burden under the facts verified

in the statement of facts herein.

CONCLUSION

It is respectfully submitted that this Honorable Court

should grant the within writ of certiorari and after due

proceedings reverse the judgment of the United States

District Court, Eastern District of Louisiana, New Orleans

18

Division, and the decision of the United States Fifth Circuit

Court of Appeal granting the summary judgment of

defendant/respondent, Texaco, Inc. dismissing the complaint

of plaintiff/applicant, Phillip Allen, and remanding the case to

the United States District Court for the Eastern District of

Louisiana, New Orleans Division, for a trial on the merits.

RESPECTFULLY SUBMITTED,

Lawrence D. Wiedemann

Counsel of Record

WIEDEMANN & WIEDEMANN

821 Baronne Street

New Orleans, Louisiana 70113

Telephone: (504) 581-6180

Attorney for petitioner,

Phillip Allen

la

(Any footnotes trail the end of each document.)

No. 01-30727

UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

Allen

v.

Texaco Inc

May 15, 2002 filed

Appeal from the United States District Court for

the Eastern District of Louisiana

(USDC No. 99-CV-1456-R)

Before REAVLEY, SMITH and DENNIS, Circuit Judges.

PER CURIAM:*

Plaintiff-Appellant Phillip Allen appeals the district

court’s order granting summary judgment on his suit for

negligence against Texaco. We AFFIRM the decision of the

district court for the reasons provided by that court.

With respect to Allen’s argument that the district

court erroneously placed the burden on him to negate the

“borrowed servant” affirmative defense, the court does not

appear to have done so. The court never stated that Allen

would bear the burden of proof on the borrowed servant

issue at that, and correctly stated the law relating to burden

of proof issues. Rather than finding that Allen failed to put

forth evidence on the borrowed servant issue, the court

concluded that “the facts overwhelmingly support a finding

that plaintiff was Texaco’s borrowed employee.” The record

supports this conclusion.

Though not discussed by the parties or the district

court, we also note that generally under this Court's

2a

precedent, a contractual provision like § 1(D) of the Master

Work Agreement creates an issue of material fact on the

borrowed servant issue.fnl However, the undisputed facts

relating to the other borrowed servant factorsfn2 point so

strongly toward a borrowed servant relationship that

summary judgment was appropriate despite contract

language purporting to limit Texaco’s control over Allen.fn3

AFFIRMED.

Footnotes

*Pursuant to 5TH CIR. R. 47.5, the Court has determined

that this opinion should not be published and is not

precedent except under the limited circumstances set forth in

5TH CIR. R. 47.5.4.

fnlAlday v. Patterson Truck Line, Inc., 750 F,2d 375, 378

(5th Cir. 1985).

fn2Ruiz v. Shell Oil Co., 413 F.2d 310,312-13 (5th Cir.

1969) (identifying the factors that courts should typically look

to in determining whether an employee is a borrowed

servant).

fn3Alday, 750 E.2d at 379 (citing Gaudet v. Exxon Corp.,

562 F.2d 351, 358-59 (5th Cir. 1977)). The Court also notes

that the Master Work Agreement in the present case did not

as strongly disavow the intent to create a borrowed servant

relationship as did the contract at issue in Ai4ay, or in a

similar case, West v. Kerr-McGee Corp., 765 F.2d 526, 531 (5th

Cir. 1985).

3a

NO. 99-1456

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

Allen

v.

Texaco Inc

CIVIL ACTION SECTION “R”

June 14, 2001 filed

JUDGMENT

Considering the Court’s order and reasons on file herein,

IT IS ORDERED, ADJUDGED, AND DECREED that the

plaintiff's complaint is hereby DISMISSED with prejudice.

New Orleans, Louisiana, this

Day of June 2001.

SARAH S. VANCE

UNITED STATES DISTRICT JUDGE

4a

CIVIL ACTION NO: 99-1456

SECTION: “R” (4)

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

PHILLIP ALLEN

versus

TEXACO, INC.

ORDER AND REASONS

Defendant, Texaco, Inc., has moved this Court for summary

judgment, seeking to dismiss all of plaintiff's claims against it.

Because the Court finds that plaintiff, Phillip Allen, was the

borrowed employee of Texaco, Inc., it GRANTS defendant’s

motion.

I. BACKGROUND

Phillip Allen was a payroll employee of Danos & Curole

Marine Contractors, Inc. who was assigned to work as a

roustabout/operator for Texaco aboard oil platforms located

in the Gulf of Mexico. Allen contends that, while working on

Texaco’s West Cameron 643A platform on September 9, 1998,

he sustained injuries when a wrench slipped while he was

working on a malfunctioning pump during a storm.

Danos & Curole is in the business of supplying workers to

various oil companies, including Texaco. It supplied its

employees, purportedly including Allen, to Texaco pursuant

to “Master Service Agreement.” (See Def.’s Me. Supp. Mot.

Summ. J. Ex. A.) This contract states that Danos & Curole

shall perform as an “independent contractor” and that Texaco

shall not exercise control over the employees of Danos &

Curole. (See id. Ex. A ¥ 1 D.)

4a-1

Texaco employed Allen to produce oil and gas from Texaco’s

lease site. At the time of the accident, the crew for the West

Cameron 643A platform consisted of two Texaco payroll

employees and one contract employee, plaintiff. (See id. Ex.

B.) No supervisory personnel from Danos & Curole

maintained a physical presence on the platform. Plaintiff

worked seven days on/seven days off shifts, with Texaco

determining plaintiff's work schedule and the amount of time

he worked on the West Cameron 643A platform. (See id. Exs.

B & D at 39). Texaco provided all food, lodging, and

transportation to and from the platforms. (See id. Exs. B & E

at 27). Texaco also provided all tools and equipment Allen

needed to perform his work on the platform. (See id. Ex. B.)

Texaco provided plaintiff with daily work orders and job

responsibilities. (See id.) Texaco personnel provided

additional instructions to plaintiff on what plaintiff needed to

do while working on the platform and what his

responsibilities included. (See id. Exs. B & D at 51-52).

Plaintiff routinely submitted reports to Texaco’s production

supervisor, and plaintiff attended all production meetings

- conducted and attended by Texaco personnel. (See id. Exs.

B.) Under the Texaco and Danos & Curole contract, Danos &

Curole billed Texaco for the hours plaintiff worked, and

Danos & Curole issued plaintiff his paycheck. (See id. Ex. B.)

Texaco had the right to discharge plaintiff from his job as an

operator on the platform. (See id. Ex. B.)

Texaco moves for summary judgment on the grounds that

plaintiff is Texaco’s borrowed servant, and _ therefore

plaintiff's exclusive remedy is workers compensation benefits

under the LHWCA. Plaintiff argues that summary judgment is

inappropriate because Texaco did not retain authoritative

direction and control over the performance of his work and

that Texaco merely monitored plaintiffs work. Rather,

plaintiff asserts that he was an independent contractor

working for Texaco.

Il. | DISCUSSION

A. _ Legal Standard

Summary judgment is appropriate when there are no genuine

issues as to any material facts, and the moving party is

entitled to judgment as a matter of law. See FED. R. Civ. P.

56(c); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322-23,

106 S. Ct. 2548, 2552 (1986) . A court must be satisfied that no

reasonable trier of fact could find for the nonmoving party or,

in other words, “that the evidence favoring the nonmoving

party is insufficient to enable a reasonable jury to return a

verdict in her favor.” Lavespere v. Niagara Mach. & Tool

Works, Inc., 910 F.2d 167, 178 (5th Cir. 1990) (citing Anderson

v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S. Ct. 2505, 2511

(1986)). The moving party bears the burden of establishing

that there are no genuine issues of material fact.

If the dispositive issue is one on which the nonmoving party

will bear the burden of proof at trial, the moving party may

satisfy its burden by merely pointing out that the evidence in

the record contains insufficient proof concerning an essential

element of the nonmoving party’s claim. See Celotex, 477 U.S.

at 325, 106 5. Ct. at 2554; see also Lavespere, 910 F.2d at 178.

The burden then shifts to the nonmoving party, who must, by

submitting or referring to evidence, set out specific facts

showing that a genuine issue exists. See Celotex, 477 U.S. at

324, 106 S. Ct. at 2553. The nonmovant may not rest upon the

pleadings, but must identify specific facts that establish a

genuine issue exists for trial. See id. at 325, 106 5. Ct. at 2553-

54; Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.

1996).

_ B. Borrowed Employee Doctrine

The Outer Continental Shelf Lands Act, 43 U.S.C. § 1333, et

seq., applies to this dispute because Allen was injured on an

oil platform located on the Outer Continental Shelf, off the

Louisiana coast. OCSLA provides that the Longshore and

Harbor Workers’ Compensation Act, 33 U.S.C. §§ 901-950,

4a-3

regulates the right to compensation of an injured platform

worker. See 43 U.S.C. § 1333(b). Under the LHWCA, workers’

compensation is the exclusive remedy for an employee

against his “employer.” See 33 U.S.C. §§ 904(a), 905(a). The

Fifth Circuit has extended this tort immunity provision to

include borrowing employers under the “borrowed

employee” doctrine. See Total Marine Servs., Inc. v. Director,

Office of Worker’s Compensation Programs, 87 F.3d 774, 777

(5th Cir. 1996) (citing Hebron v. Union Oil Co., 634 F.2d 245

(5th Cir. 1981); Gaudet v. Exxon Corp., 562 F.2d 351 (5th Cir.

1977)); Melancon v. Amoco Prod. Co., 834 F.2d 1238, 1243-44

(5th Cir. 1988) ‘citations omitted) . Workers’ compensation

also provides the exclusive remedy for an employee injured

“by the negligence or wrong of any other person or persons in

the same employ.” 33 U.S.C. § 933(i). Accordingly, if this

Court determines that Allen was Texaco’s borrowed

employee, Texaco will be vested with § 933(i) immunity.

The district court determines the issue of borrowed employee

status as a matter of law. See Capps v. N.L. Baroid-NL Indus.,

Inc., 784 F.2d 615, 617 (5th Cir. 1986) (citing Gaudet, 562 F.2d

at 357-58); Melancon, 834 F.2d at 1244. “~I]f sufficient basic

factual ingredients are undisputed, the court may grant

summary judgment.” Capps, 784 F.2d at 616 (citing Gaudet,

562 F.2d at 358-59). In Ruiz v. Shell Oil Co., the Fifth Circuit

outlined nine factors to be used to determine whether the

borrowed employee doctrine applies. 413 F.2d 310, 312-13

(5th Cir. 1969). These factors include the following

considerations:

1. Who has control over the employee and the work he

is performing, beyond mere suggestion of details of

cooperation?

2. Whose work is being performed?

3. Was there an agreement, understanding, or meeting of

the minds between the original and the borrowing employer?

4a-4

4. Did the employee acquiesce in the new work

situation?

5. Did the original employer terminate his relationship

with the employee?

6. Who furnished the tools and the place of

performance? -

7. Was the new employment over a considerable length

of time?

8. Who had the right to discharge the employee?

9. Who had the obligation to pay the employee?

See id. See also Melancon, 834 F.2d at 1244. Although no

single factor or combination thereof is determinative, the

Fifth Circuit has generally considered the factor of control to

be central. See Brown v. Union Oil Co., 984 F.2d 674, 676 (5th

Cir. 1993); Melancon, 834 F.2d at 1245; Capps, 784 F.2d at 617.

However, in Gaudet, the Fifth Circuit deemphasized the

control factor and found that only the fourth, fifth, sixth, and

seventh factors should be considered “essential.” 562 F.2d at

356. See Brown, 984 F.2d at 677 n.2.

1. Who had Control Over the Employee and the Work He

was Performing?

Determination of the control factor requires the Court to

distinguish “‘between authoritative direction and control, and

mere suggestion as to details or the necessary cooperation,

where the work furnished is part of a larger undertaking.”

Ruiz, 413 F.2d at 313 (quoting Standard Oil Co. v. Anderson,

212 U.S. 215, 222, 29 5. Ct. 252, 254 (1909)).

Danos & Curole furnished plaintiff's services as a platform

worker to Texaco under a “Master Service Agreement,”

which states that Texaco has no control of Danos & Curole’s

employees. (See Def.’s Mem. Supp. Mot. Summ. J. Ex. A J

4a-5

1D.) At the time of the accident and for the seventeen months

prior to the accident, plaintiff was the only Danos & Curole

employee on the Texaco platform and did not have anyone

from Danos & Curole assisting or supervising his work. (See

id. Ex. D. at 43.) Plaintiff testified that he received his daily

assignments from Texaco personnel. (See id. Ex. D. at 51.)

Texaco personnel also supervised Danos & Curole employees

on Texaco platforms. (See id. Ex. C at 75.) Plaintiff's direct

supervisor was a Texaco employee. (See id. Ex. E at 106, 120,

121.) Texaco set plaintiff's work schedule, determined when

crew changes occurred, and decided whether or not to

discharge Danos & Curole employees, such as plaintiff, from

Texaco assignments. (See id. Ex. E at 14 & 76.) Further,

Texaco decided whether to evacuate plaintiff from the

platform and who was essential to the platform’s operation.

(See id. Ex. E at 18, 30-31.) Moreover, Danos & Curole did not

have any representatives on the platform to supervise or

direct plaintiffs work for the last seventeen months of

plaintiffs job aboard the platform. (See id. Ex. D at 49-50.)

Danos & Curole’s personnel coordinator testified that he had

no knowledge of how plaintiff conducted his job. (See id. Ex.

E at 71.) Thus, Texaco argues that there is thus no factual

dispute as to who supervised plaintiff's work on the platform.

Compare Brown, 984 F.2d at 678 (issue of fact on borrowed

employee status when conflicting testimony regarding

whether payroll employer or platform owner instructed

plaintiff on how, when and where to perform his cleaning

duties).

That plaintiff used his own discretion in evaluating the safety

of tasks without direction from Texaco does not preclude a

finding of borrowed employee status when Texaco personnel

told them “what work to do, and when and where to do it.”

Melancon, 834 F.2d at 1245. This Court does not interpret the

control factor to require that the borrowed employer direct

each and every action taken by the borrowed employee.

Moreover, that Danos & Curole personnel spoke with plaintiff

during the storm, met with plaintiff on his days off, gave

plaintiff the authority to refuse work if he felt unsafe, and

told plaintiff to contact Danos & Curole if anything

4a-6

endangered him does not defeat borrowed employee status

because these contacts were only incidental to the central

purpose of his employment, to maintain gas production from

Texaco’s platform. See Moody v. Callon Petroleum Operating

Co., 1999 WL 596268, at *3 (E.D. La. Aug. 3, 1999) . Although

plaintiff makes much of facts indicating that Danos & Curole

showed “concern” for him when he was left on Texaco’s

platform during a storm in the Gulf, such a natural inclination

does not change the nature of plaintiffs relationship with

Texaco. After reviewing all of the relevant deposition

testimony and other evidence, the Court finds that the

supervision and instruction provided by Texaco rose above

“mere suggestion of details or cooperation.” Accordingly, the

control factor weighs in favor of finding that plaintiff was

Texaco’s borrowed employee status as to plaintiff.

2. Whose Work was Being Performed?

There is no dispute that Danos & Curole provided personnel

and services to Texaco to assist in the operation of the West

Cameron 643A platform. The West Cameron 643A is owned

and operated by Texaco. (See Def.’s Mem. Supp. Summ. J. Ex.

B.) The record indicates that the maintenance and operations

conducted by plaintiff did in fact promote Texaco’s

operations. Accordingly, the second factor weighs in favor of

borrowed employee status.

3. Was there an Agreement or Understanding Between

the Original and the Borrowing Employer?

Danos & Curole entered into a master service contract with

Texaco. This contract provides in pertinent part:

_D. Contractor’s Status

The parties acknowledge that Contractor is an independent

Contractor. As such, Texaco shall have no voice in the

discharge supervision, or control of Contractor’s employees,

representatives or subcontractors or in fixing their numbers,

compensation, or hours of service. Texaco shall have no right

4a-7

to control the manner of Contractor’s performance but

Texaco and its representatives shall have the right to inspect

the work performed and to make suggestions and comments

thereon.

(See id. Ex. A.) Although the contract specifically calls for

Danos & Curole to be considered an independent contractor,

the Fifth Circuit has held that such a contract provision does

not automatically negate borrowed employee status. See

Brown, 984 F.2d at 677-78; Melancon, 834 F.2d at 1245. “The

reality at the work site and the parties’ actions in carrying out

a contract . . can impliedly modify, alter, or waive express

contract provisions.” Melancon, 834 F.2d at 1245 (citations

omitted). Analyzing contract language, the Melancon court

held that the provision did not negate borrowed empioyee

status when the nominal employer clearly understood that

plaintiff would take his instructions from the borrowed

employer. See id. As discussed supra, the evidence here

indicates that Danos & Curole did not instruct plaintiff on

how to perform his duties on the Texaco platform. Indeed,

Danos & Curole’s personnel coordinator testified that the

contract’s terms did not reflect the reality of the situation. In

fact, when asked if the Danos & Curole and Texaco

relationship was consistent with the contract, Ronald Ratcliff,

Danos & Curole’s account manager and former personnel

coordinator, answered as follows:

Q: My question was: Is your understanding of the

relationship, as it worked day by day in the relationship with

Texaco, consistent with what you just read?

A: Well, can I see it again?

Q: Yes, sure.

A: I mean, it’s a tough question because, I mean, they

[Texaco] have full voice in discharge. They have full voice in

compensation. They have full voice in supervision. I mean,

they tell us when they don’t want an employee. It’s not us

telling them we don’t think he should work out there for you

4a-8

no more. It’s them telling us when our employees should get a

raise. This says one thing, but some things happen differently.

Just because they’re under Texaco’s supervision, they see

their job daily performance. That says that, but you know, I

can’t give a raise unless Texaco approves it. .

* %*

Q: And it says as such, Texaco will have no voice in the

discharge. You say they have all the voice in the discharge?

A: Yes. If they don’t want somebody, then we replace

them.

Q: They tell you ali to replace them?

A: That’s our business.

Q: What would happen, if Texaco didn’t like what an

employee was doing, they would tell you and it would be your

company’s job to discharge them?

A: Yes.

Q: What about supervision or control of the contractor's

employees?

A: What you mean by supervision?

Q Supervision and control.

A: Every field has a field foreman.

Q And the filed foreman is an employee for whom?

A: Texaco.

(See Def.’s Mem. Supp. Suram. J. Ex. E at 14-16.) Thus, in

reality, Texaco had control of discharge and compensation

and Danos & Curole employees were under Texaco’s

4a-9

supervision. (See id.) Even plaintiff himself testified that he

received his daily instructions from Texaco personnel. (See

id. Ex. D at 51.) Like Melancon, Texaco told plaintiff “what

work to do, and when and where to do it.” 834 F.2d at 1245.

The Court thus finds that the contract provision was altered

by the reality at the work site, and the provision does not

prohibit a finding of borrowed employee status.

4. Did the Employee Acquiesce in the New Work

Situation?

“The focus of this factor is whether the employee was aware

of his work conditions and chose to continue working in

them.” Brown, 984 F.2d at 678. Here, plaintiff worked on the

Texaco platform for two years without lodging any

complaints about his working conditions. See Brown, 984

F.2d at 678 (one month sufficient time to appreciate new

work conditions) ; Cobb v. SIPCO Servs. & Marine, Inc., 1997

WL 159491 (E.D. La. 1997) (Vance, J.) (two months).

Moreover, plaintiff knew that his nominal employer, Danos &

Curole, was a contract company that loaned temporary

employees to other companies and that Texaco was one of

those companies. (See Def.’s Mem. Supp. Mot. Summ. J. Ex.

D at 39.) Plaintiff understood that the West Cameron 643A

was owned by Texaco and that Texaco personnel instructed

plaintiff on what to do while working on this platform. (See

id. Ex. D at 39 & 51-52.) In fact, in his deposition plaintiff

himself characterized his job as “working for Texaco.” (See

id. Ex. D at 45 & 48.) Plaintiff shared the same duties as

Texaco operators and participated in production meetings

conducted by Texaco personnel. (See id. Ex. B.) This factor

indicates that plaintiff acquiesced in the Texaco work

arrangement and favors borrowed employee status.

4a-10

5. Did the Original Eriployer Terminate his Relationship

with the Employee?

This factor does not require the lending employer to sever

completely its relationship with the employee, because such a

requirement would effectively eliminate the borrowed

employee doctrine. See Melancon, 834 F.2d at 1238; Capps,

784 F.2d at 617-18. Rather, the court examines the lending

employer's relationship with the -employee whiie the

borrowing occurs. See Capps, 784 F.2d at 618. Danos &

Curole hired plaintiff and gave him the Texaco assignment;

however, Danos & Curole’s personnel coordinator testified

that he has no knowledge regarding plaintiffs daily work

performance and responsibilities. (See id. Ex. E at 71.)

Plaintiff admitted that Texaco personnel assigned daily tasks

to plaintiff. (See id. Ex. D at 51-52.) Plaintiff has submitted no

evidence that the contact between plaintiff and Danos &

Curole while plaintiff was on the job site consisted of more

than occasional visits and phone calls from Danos & Curole.

Based on this evidence, the Court finds that factor five

weighs in favor of borrowed employee status.

6. Who Furnished the Tools and the Place of

Performance?

Texaco furnished plaintiff with the place of employment,

meals, lodging, and transporiation to and from work. Texaco

also provided plaintiff with the tools he needed on the job.

(See id. Exs. B.) There is no evidence that Danos & Curole

provided plaintiff with any tools needed to perform his work

assignments. This factor also favors borrowed employee

status.

4 Was the New Employment Over a Considerable

Length of Time?

The Fifth Circuit has held that when “the length of

employment is considerable, this factor supports a finding

that the employee is a borrowed employee, “ but that “the

converse is not true.” Capps, 784 F.2d at 618. The Capps court

4a-11

found this factor neutral on borrowed employee status when

the employee's injury occurred on the first day of the job. See

id. Here, plaintiff had worked for Texaco for approximately

two years prior to the alleged accident. The Court finds that

the length of employment favors borrowed employee status.

8. Who Had the Right to Discharge the Employee?

While Texaco did not have the right to terminate plaintiff's

employment with Danos & Curole, it did have the right to

terminate his relationship with Texaco. (See Def.’s Mem.

Supp. Mot. Summ. J. Ex. E 14-16.) This fact favors borrowed

employee status. See Melancon, 834 F.2d at 1216; Capps, 784

F.2d at 618.

9. Who Had the Obligation to Pay the Employee?

Finally, with respect to the last factor, Danos & Curole paid

plaintiff with funds received from Texaco. Danos & Curole

billed Texaco for the hours plaintiff worked and would in

turn issue a paycheck to plaintiff. (See Def.’s Mot. Summ. J.

Ex. B.) The Fifth Circuit has consistently held that this type

of payment arrangement weighs in favor of a finding of

borrowed employee status. See Melancon, 834 F.2d at 1246;

Capps, 784 F.2d at 618.

III. CONCLUSION

For the foregoing reasons, the Court finds no factual dispute

as to the Ruiz factors and that, as a matter of law, the facts

overwhelmingly support a finding that plaintiff was Texaco’s

borrowed employee. As such, the LHWCA bars plaintiff's suit

against Texaco. The Court hereby GRANTS defendant’s

motions for summary judgment and dismisses plaintiff's

claims against Texaco with prejudice.

New Orleans, Louisiana, this 5th day of June, 2001.

SARAH S. VANCE

UNITED STATES DISTRICT JUDGE

5a

TEXACO INC.

MASTER WORK AGREEMENT WITH

INDEPENDENT CONTRACTOR

This Agreement, made and entered into in New

Orleans, Louisiana, dated as of the 23rd day of March 1997, by

and between Texaco Inc., a Delaware corporation with

offices in New Orleans, Louisiana (hereinafter referred to as

“Texaco”), and Danos & Curole Marine Contractors, Inc., a

Louisiana corporation, with off ices in Larose, Louisiana

(hereinafter referred to as "Contractor").

1. WORK TO BE PERFORMED; MATERIAL, EQUIPMENT,

AND SERVICES TO BE PROVIDED; CONTRACTOR'S

WARRANTY; CONTRACTOR'S STATUS; AND

SUBCONTRACTORS

A.

Work To Be Performed. In consideration of the

payments to be made pursuant to Paragraph 2,

Contractor promises and agrees to perform the

following work: Roustabouting, construction work

and general oilfield maintenance at Texaco’s

various leases and/or properties in what is known

as Texaco’s New Orleans Operations Division. Work

is to be performed as set forth in Exhibit "A"

attached hereto and made a part hereof; said work

shall be more fully described in Texaco’s specifica-

tions and/or written instructions, as provided from

time to time during Contractor’s performance, to be

attached hereto as Exhibit “B” and made a part

hereof. Unless otherwise agreed to in writing by an

authorized representative of Texaco, all, work

which Contractor agrees to perform and/or

performs for Texaco's New Orleans Operations

Division shall be performed according to the terms,

conditions, and provisions set out herein, if and

when said work is directed to be performed from

time to time by Texaco.

6a

Material, Equipment, and Be Provided. Contractor

agrees, at its sole cost, to purchase and deliver or to

provide all materials, equipment, and services

reasonably necessary to perform Contractor’s

obligations under this Agreement except as

provided by Texaco under Article 6.D., “Material,

Equipment and Services To Be Provided”.

Contractor’s Warranty. Contractor warrants that all

work performed under this Agreement shall be

performed in a good and workmanlike manner, that

all materials and equipment furnished by Contractor

shall be of good and merchantable quality, and

unless otherwise specified in writing by Texaco

shall be new and not previously used, and that all

work, materials and equipment furnished by

Contractor shell be free of defect.

Contractor's Status. The parties acknowledge that

Contractor is an independent Contractor. As such,

Texaco shall have no voice in the discharge,

supervision, or control of Contractor's employee,

representatives or subcontractors or in fixing their

number, compensation or hours of service. Texaco

shall have no right to control the manner of

Contractor’s performance but Texaco and its

representatives shall have the right to inspect the

work performed and to make suggestions and

comments thereon.

Subcontractors. If Contractor shall cause any part

of the work hereunder to be performed by a

subcontractor, the provisions of this Agreement

shall apply to such subcontractor and his or its

employes in all respects as if he or it were employes

of Contractor, and Contractor shall be liable for the

work of the subcontractor accordingly. Prior to

entering into any agreement with any subcontractor

to provide any services and/or materials in

connection with the work to be _ performed

7a

hereunder, Contractor shall submit for Texaco’s

review and written approval a general list of the

major subcontractors which contractor might utilize

in the performance of the work. Contractor shall be

free to use any subcontractor not objected to by

Texaco. Texaco's approval of or failure to reject any

subcontractor shall not affect the provisions of this

Agreement.

2. CONSIDERATION PAYABLE TO CONTRACTOR TERMS

OF PAYMENT AND TIME FOR PAYMENTS

A. In consideration of the performance undertaken by

Contractor, Texaco shall pay to Contractor either:

(1) An amount determined in accordance with the

Contractor’s Rate Schedule dated January 11,

1982 and all amendments thereto, marked by

Texaco as Exhibit “A” and bearing the effective

date of the Agreement, or the date on which

Texaco accepts any amendments thereto.

(2) A fixed turnkey sum agreed upon in writing,

which may include, but is not limited to bid and

award documents. Additions, deletions and or

changes to the fixed price shall be made in

accordance with the provisions of Article 7.B.

of the Agreement, unless expressly modified by

said written documents.

CONTRACTOR SHALL GIVE TEXACO THIRTY (30) DAYS

PRIOR WRITTEN NOTICE OF ANY PROPOSED CHANGE IN

CONTRACTOR’ S RATE SCHEDULE. IN NO EVENT SHALL

ANY INCREASE IN CONTRACTOR'S RATE SCHEDULE BE

EFFECTIVE UNLESS AND UNTIL THE CHANGE IS

APPROVED IN WRITING BY TEXACO AND THIS

AGREEMENT PROPERLY AMENDED .

B. Terms of Payment. Texaco shall pay to Contractor

the consideration described in Paragraph ZA as

follows:

Contractor shall furnish work tickets EACH DAY to

Texaco’s representative for his verification

reflecting agreement number, location of job,

description of equipment, materials or supplies

furnished, names of Contractor’s employes, and the

number of hours worked, in a form of work ticket

acceptable to Texaco. All work tickets shall be

prepared in_ strict accordance with the

classifications contained in the Contractor’s Rate

Schedule, Exhibit “A”. In no event shell the repre-

sentative’s signature indicate an acceptance of any

terms or conditions which may be contained on

Contractor's work ticket.

All Contractor's invoices for work performed for Texaco shall

be rendered as promptly and currently as Contractor's

established procedures shall permit. Contractor's invoices

must be rendered in accordance with the terms and

provisions of this Agreement, and bearing the Agreement

Identification Number, and be in sufficient detail to permit

ready identification with Contractor's daily time sheets or

work tickets and for processing against and comparison with

the Agreement and the current contractor’s Rate Schedule,

Exhibit “A”.

Should the work be authorized on a firm turnkey price basis,

payment by Texaco for material, equipment, fabrication

and/or installation shall be made in the following manner

after Texaco’s approval of invoices covering these items:

Texaco shall pay 85% of the amount of these invoices within

thirty (30) days after such billing and approval of such —

invoices. The remaining 15% shall be paid after final

acceptance (to be given by Texaco in accordance with the

provisions of this Article 2.B. and Article 6.E., “Acceptance of

Work”) of all items covered by the Agreement. At no time

during the duration of the work shall Contractor be paid an

amount greater than 85% of the total Agreement price agreed

9a

upon, invoices shall be submitted in the following manner:

(1) Major Equipment and Materials - Upon receipt from

vendor.

(2) Fabrication - Monthly for that portion considered

completed by Texaco’s representative and Contractor

during the invoice period. :

(3) Installation - Monthly for that portion considered

completed by Texaco’s representative and Contractor

during the invoice period.

After final acceptance of the contracted work (to be given in

accordance with Article 6.E., “Acceptance of Work”), final

settlement shall be made and all money due Contractor shall

be paid by Texaco upon completion of the following:

(1) Contractor has_ provided Texaco with written

certification and evidence of Contractor’s compliance

with all existing laws and/or regulations of all

governmental and municipal bodies with respect to the

work performed hereunder.

(2). Contractor has provided Texaco with satisfactory

evidence of due payment of all bills, claims, charges

and obligations for labor, materials or services rendered

or incurred in connection with this Agreement.

(3) Contractor has provided Texaco with satisfactory

evidence of the fact that no liens have been filed or

recorded against Texaco, Texaco’s property or the

property subject to this Agreement.

(4) Contractor has provided Texaco with satisfactory

evidence of Contractor’s settlement of any and all

claims for damages, injuries or death arising out of the

work performed under this Agreement, including,

without limitation, any personal injury claims.

10a

(5) Contractor has provided Texaco a release by an officer

of the company, in authentic form, releasing Texaco, its

officers, agents, employee and persons for whom

Texaco is responsible from any and all claims of the

Contractor arising under this Agreement.

Payment by Texaco of any monies to Contractor for

completion of portions of work shall not amount to nor be

construed as acceptance of such work or materials for which

said monies are paid, nor shall such payment amount to the

release of any obligations of the Contractor or a waiver by

Texaco of any of its rights under this Agreement.

C. Time For Payments. Except where otherwise

provided herein payments to be made under the

terms of this Agreement shall be made WITHIN

THIRTY (30) DAYS AFTER TEXACO HAS

RECEIVED AN INVOICE, in proper form,

evidencing that amounts are due as well as

Contractor's written verification, supported by

proper evidence, that no liens, claims, privileges, or

liabilities exist with respect to the work performed,

and Contractor’s written promise to satisfy or

discharge any such lien, claim, privilege, or liability

arising out of Contractor’s work, within five (5) days

of the receipt of a written demand by Texaco. No

partial payment made by Texaco shall be construed

or deemed to be an acceptance of any work

performed.

3. TIME FOR PERFORMANCE AND AGREEMENT TERM

This Agreement shall be effective as of the date above

stated and shall remain in effect until cancelled by either

party upon giving the other party ten (10) days prior

written notice thereof. Should Texaco elect to authorize

Contractor to perform work under this Agreement, the

time of performance shall be that specified by Texaco or

agreed upon by the parties. This Agreement cancels and

supercedes Agreements with Independent Contractor

lla

No. H-83-04 dated February 1, 1983 and No- MC-5-82

dated January 13, 1982.

4. RISK ALLOCATION, IDEMNITY, FORCE MAJEURE,

INSURANCE, POLLUTION CONTROL

A. Risk Allocation. Contractor agrees that it shall bear

the risk of loss, destruction, injury or damage to the

object of work to be performed hereunder until

such time as Texaco has, in writing, unconditionally

accepted Contractor’s work and all of the

components of that work.

The provisions of this Article 4.A. shall not apply

when the extent of the work performed by

Contractor hereunder is solely the maintenance,

replacement, repair or salvage of equipment already

owned or leased by Texaco and located on Texaco’s

premises at the time of the work.

B. Indemnity.

(1) Contractor covenants and agrees to indemnify,

defend, and hold Texaco, its subsidiaries and

affiliated companies, their agents, employes, and

persons for whom each is responsible (hereinafter,

collectively and individually, called “Texaco”) free

and harmless from and against any and all actions,

causes of action, claims, costs (including

attorney's fees and court costs), damages,

judgments or liabilities in connection therewith

which may be asserted by Contractor, its agents,

employes, subcontractors and persons for whom

Contractor is responsible (hereinafter, collectively

and individually, called “Contractor), Texaco’s

agents, employes and persons for whom Texaco is

responsible, or any third parties, on account of

personal injury or death, or property damage

caused by, arising out of, or in any way incidental

to, or in connection with the performance of the

(2)

12a

work hereunder, whether such personal injury or

death or property damage was caused by

Contractor’s sole fault or liability, the concurrent

fault or liability of the Contractor and Texaco, or

the sole fault or liability of Texaco, whether such

fault or liability is based on a theory of negligence,

strict liability, or a combination thereof.

In the event that this Contract is subject to

Louisiana Revised Statute 9:2780 as enacted by the

Legislature of Louisiana, and so long as that

Statute is in force, then;

a. Contractor covenants and agrees to fully

indemnify, defend and hold Texaco, its

subsidiaries and affiliated companies, their

agents, employes, and persons for whom each

is responsible (hereinafter, collectively end

individually, called “Texaco”) free and

harmless from and against any and all actions,

causes of action, claims, costs (including

attorney’s fees and court costs), damages,

judgments or liabilities in connection

therewith which may be _ asserted by

Contractor, its agents, employes,

subcontractors and persons for whom

Contractor is responsible (hereinafter,

collectively and individually, called

“Contractor”), Texaco’s agents, employes, and

persons for whom each is responsible, or any

third parties on account of death or personal

injury of any person, caused by, arising out of,

or in any way incidental to, or in connection

with the performance of the work hereunder,

except that if Texaco shall be solely at fault or

liable, whether under a theory of negligence,

strict liability or combination thereof, in

factually and proximately .causing the

particular death or injury, then this indemnity

shall not apply. In the event that Contractor

13a

and Texaco shall be concurrently at fault of

_liable, whether under a theory of negligence,

strict liability or combination thereof, then

Contractor shall indemnify, defend and hold

Texaco free and harmless from and against

any and all actions, causes of action, claims,

costs (including attorney’s fees and court

costs), damages, judgments or liabilities

except to the extent of Texaco’s comparative

fault or liability, whether such fault or liability

is based on a theory of negligence, strict

liability, or a combination thereof.

b. Contractor covenants and agrees to fully

indemnify, defend and hold Texaco, its

subsidiaries and affiliated companies, their agents,

employee, and persons for whom each is respons-

ible (hereinafter collectively and_ individually

called “Texaco”) free and harmless from and

against any and all actions, causes of action,

claims, costs (including attorney's fees and court

costs), damages, judgments or liabilities arising

out of any injury, damage or effect other than

those described in Paragraph “a.” hereof, including

such injury, damage or effect caused by the sole

fault or liability of Texaco, whether such fault or

liability is based on a theory of negligence, strict

liability or combination thereof,

(3) In the event that any Paragraph or portion of this

indemnity is found by a court of competent jurisdiction

to be invalid or unenforceable, then that Paragraph or

portion as the case may be shall be stricken as if it were

never contained in this Agreement but the remaining

provisions of that Paragraph and of this Agreement

shall remain in full force and effect.

(4) Contractor further agrees to indemnify, defend, and

hold Texaco, its subsidiaries and affiliated companies,

their agents, employes, and persons for whom each is

(5)

l4a

_ responsible harmless from any claim, demand, action,

or cause of action based on or arising out of the

infringement of any patent.

Contractor agrees to indemnify and hold Texaco, its

subsidiaries and affiliated companies, harmless from

any claims, costs, demands, fines, causes of action, and

losses arising out of or connected with any failure or

violation by Contractor while performing under this

Agreement of any laws, standards, regulations and

orders of all government and municipal bodies having

jurisdiction, including, without limitation, those

described in Exhibits “C” and "D", entitled “Contract

Supplement” and ‘“Nondiscrimination in Outer

Continental Shelf Contracting ¢ 30 CFR 270”,

respectively, attached hereto and made a part hereof.

Notwithstanding any other provision of this Agreement,

Contractor covenants and agrees that its obligations,

duties and liabilities under Paragraph 4.B of this

Agreement entitled “Indemnity” are independent of and

in no way connected with any other provision of this

Agreement, including but not limited to Paragraph 4 .D

entitled “Insurance”, and the indemnities and hold

harmless granted under Paragraphs 4.E and 5.B,

respectively entitled “Pollution Control” and “Permits

and Taxes”, and accordingly shall not be limited,

restricted, or in any way affected by any other provision

of this Agreement, including but not limited to

Paragraphs 4.D., 4.E. and 5.B. hereof.

Force Majeure. In the event that performance under

this Agreement shall become impossible because of the

occurrence of an event not within the control of any

party to this Agreement and not contemplated by the

parties then performance under this Agreement shall be

excused only during the time that performance is made

impossible. Texaco shall have the right to terminate this

Agreement if performance is made impossible for more

than ten (10) days so long as Texaco shall pay to

15a

Contractor the reasonable value of work already

performed.

Insurance.

Contractor shall maintain, at its sole cost, and shall

require any subcontractors it may engage to maintain, at

all times while performing work hereunder, the

insurance coverage, where applicable, set forth below

with companies satisfactory to Texaco and endorsed to

cover operations in the Gulf of Mexico, Atlantic Ocean,

and all other operations to be performed under this

Agreement. A certificate naming Texaco, its subsidiaries

and affiliated companies as additional insured and

evidencing the Comprehensive General Liability and

Excess Liability coverages specifically quoting the

indemnification provision set forth in this Agreement,

shall be delivered tc Texaco immediately upon

execution of this Agreement. Such certificate shall

provide that any change restricting or reducing coverage

or the cancellation of any policies under which

certificates are issued shall not be valid as respects

Texaco’s interest therein until Texaco has received 30

days notice in writing of such change or cancellation.

Further, it shall state that it is primary coverage and not

concurrent or excess over other valid insurance which

may be available to Texaco. The certificate shall also

state on its face the basis for each type of coverage.

Should any coverage be provided on a claims made

basis, the policy shall include at least a two (2) year

extended reporting period endorsement, and shall not

contain a “prior acts” exclusion. Contractor further

agrees to comply with all terms and conditions of the

insurance contract.

(1) Workers’ Compensation Insurance as required by

laws and regulations applicable to and covering

employes of Contractor engaged in_ the

performance of the work under this Agreement.

16a

(2) Adequate Employers’ Liability Insurance protecting

Contractor against common law liability, in the

absence of statutory liability, the employe bodily

injury arising out of the miaster-servant

relationship; and having the following

endorsements;

a. To provide against liability under the U. S.

Longshoremen’s and- Harbor Workers

Compensation Act, as amended, including

protection with respect to the extension of

this Act under the Outer Continental Shelf

Land Act.

b. To provide against liability under the “Jones

Act”, Death on the High Seas Act and the

General Maritime Law.

c. To provide that a claim “in rem” shall be

treated as a claim against the employer.

(3) Adequate Comprehensive General Public Liability

Insurance providing coverage for all operations

required to fulfill this Agreement, including

products/completed operations. Territorial Units shall

include Gulf of Mexico and Atlantic Ocean operations.

This policy shall cover, among other risks, the contrac-

tual liability assumed under the indemnification

provision set forth in this Agreement.

(4) Adequate Automobile Liability Insurance, including

non-owned and hired vehicle coverage.

(5) Liability insurance over Comprehensive General

Liability and Comprehensive Automobile Liability

coverages afforded by the primary policies described

above, with adequate limits in excess of the specified

limits.

(6) Protection and Indemnity Insurance and Full Hull

17a

Insurance on all vessels and other watercraft owned,

chartered or operated by Contractor.

(7) Full Machinery and Equipment Insurance covering

Contractor's equipment and appliances used in

connection therewith in amounts sufficient to cover the

replacement value of said equipment and appliances

with proper endorsements providing appropriate

navigation limits.

Each policy shall also be endorsed to provide waiver of

subrogation rights in favor of Texaco, its subsidiaries and

affiliated companies and all other parties owning an interest

in the property on which work covered by this Agreement is

to be performed.

Contractor agrees to require all subcontractors to carry

adequate Marine Insurance on service vessels furnished by

such subcontractors and to furnish Texaco schedules of this

insurance coverage.

Failure of the Contractor to keep the required insurance

policies in full force and effect during the work covered by

this Agreement shall constitute a breach of this Agreement

and Texaco shall have the right, in addition to any other

rights, to immediately cancel and terminate this Agreement

without further cost to Texaco.

Nothing contained in these provisions relating to coverage

and amounts set out herein shall operate as a limitation of

Contractor's liability in tort or contracted for under the terms

of this Agreement.

In the event that this Agreement is subject to Louisiana

Revised Statute 9:2780 enacted by the Legislature of

Louisiana, and so long as that statute is in force, then

Contractor shall not be required to name Texaco, its

subsidiaries and affiliated companies, as an additional

insured nor shall Contractor be required to obtain a waiver of

subrogation endorsements as to Texaco, its subsidiaries and

18a

affiliated companies. Notwithstanding the foregoing, Texaco

its subsidiaries and affiliated companies, shall have the right

to contact Contractor’s insurer and purchase from that

insurer additional insured and waiver of subrogation

endorsements to Contractor’s policy. Contractor agrees to

cooperate with Texaco in dealing with Contractor’s insurer.

E.

Pollution Control. Pollution Control shall be maintained

in connection with all operations by Contractor.

Additions or alterations to existing equipment used by

Contractor in the performance of this Agreement shall

be made by Contractor at its sole expense and shall

incorporate any equipment necessary to maintain the

Plant and/or Rig, and/or equipment, vehicles and

adjacent area free of all hazardous or harmful emissions,

spillage, discharge and other pollutants, and to avoid any

such conditions from arising in violation of local, state or

federal laws and regulations.

If any emitting, spilling, venting, discharging, disposal or

loss of any hazardous or harmful substances, air

contaminants, and/or pollutants of any nature or kind

(referred to hereinafter as “discharges”) which are in

violation of local, state and federal laws and regulations

or standards occur as a result of the performance of this

Agreement by Contractor its agents, employes,

subcontractors or persons for whom it is responsible,

Contractor shall immediately proceed, at its sole costs

and expense, to stop or abate such discharges, and

hereby further agrees to indemnify, protect and hold

Texaco its subsidiaries and affiliated companies,

harmless therefrom. Accordingly, Contractor shall be

fully responsible to Texaco and any and all, parties for

any and all fines, costs and losses of any kind in any way

connected with such discharges, including cost of

cleanup operations and installation of and repair of

necessary equipment. Contractor agrees to indemnify

and hold Texaco, its subsidiaries and affiliated

companies, their agents, and employes harmless from

and against any and all expenses and costs, including

19a

costs of court, attorney’s fees, and penalties or fines

imposed by any law, rule, standard, or regulation in any

way connected with the occurrence of the discharges.

Contractor agrees that it shall comply, at its sole cost

and expense, with any and all laws, rules, regulations,

orders, and standards promulgated in connection with

and applicable to the performance and execution of all

work contracted for under this Agreement; and further

agrees that it shall comply with any and all local, state

and federal laws, regulations, standards, and orders of all

state and federal political subdivisions and agencies,

applicable to the controlling, regulating and prevention

of pollution, disposal and discharges. Additionally,

Contractor agrees to abide by the terms set forth on

Exhibit “E” attached hereto and made a part hereof.

CONTRACTOR’S OBLIGATIONS IN PERFORMING

UNDER THIS AGREEMENT

A. Reliance on _ Prior’ Inspection. Contractor

acknowledges that all obligations undertaken and all

promises made are based on inspections and

investigations made by Contractor and_ that

Contractor understands the nature of the work to be

performed, the obligations undertaken, and the

promises made.

B. Permits and Taxes. Contractor agrees to procure all

permits and licenses required to perform the work

hereunder. Contractor further agrees to pay all

taxes which may become due as a result of the work

performed. Contractor accepts responsibility and

liability for payment of federal and state payroll

taxes and for contributions for unemployment

insurance, old age pensions, annuities, retirement,

and other benefits, imposed or assessed under any

provisions of any law and measured by wages,

salaries or other remuneration paid or payable by

Contractor to employes of Contractor engaged in

20a

said work or in any operation incidental thereto,

and agrees that each subcontractor shall accept the

same responsibility and liability with respect to

employee of such subcontractor. Contractor agrees

that Contractor and all subcontractors shall enter

into any agreement prescribed by any federal or

state governmental body to effectuate the purposes

hereof, and shall comply with all regulations

respecting assumption of liability for such taxes and

contributions. Contractor further agrees to

indemnify and save Texaco harmless against all

claims, taxes, penalties, interest, and costs which

,au be made or assessed against Texaco under any

such law, rule, or regulation with respect to

employes of Contractor and of any subcontractor.

Protect Work. Contractor agrees to adequately

protect all work and Texaco’s property and to take

steps to protect all persons and Texaco’s property

from death, injury, or damage arising out of Con-

tractor’s work and to provide and maintain facilities

necessary to insure safe working conditions or in |

accordance with applicable governmental authority.

Compliance. Contractor agrees to comply with all

applicable regulations, ordinances, and rules in

performing hereunder. Contractor further agrees to

comply with any rules in existence or promulgated

during Contractor's performance and imposed by

Texaco which is intended to minimize risks of

death, injury, or property damage reasonably related

to Contractor’s work. Contractor also agrees to

comply with those statutes, rules, and orders

described on Exhibits “C”, "D" and "F" entitled

"Contract Supplement” and “Nondiscrimination in

Outer Continental Shelf Contracting - 30 CFR 270”,

and “Louisiana Contractors’ Licensing Law’,

respectively, attached hereto and made a part

hereof.

2la

Failure of Contractor to Perform. Contractor

authorizes Texaco to deduct from any amount

payable to Contractor (whether or not arising out of

this Agreement) all amounts which may be payable

by Contractor to Texaco, and also all amounts for

which Texaco may become liable to third parties by

reason of Contractor's acts in performing or failing

to perform its obligations under this Agreement. In

the event that any claim is made by a third party, the

amount or validity of which is disputed by

Contractor, or any indebtedness exists which may

appear to be the basis for a claim of lien, Texaco

may withhold from any payment due, without

liability for interest, an amount sufficient to cover

such claim. The failure of Texaco to exercise this

right to deduct or to withhold shall not affect the

obligation of Contractor to ,protect Texaco as

provided herein.

Contractor agrees that if it shall fail to work for a

period of five (5) consecutive days or if Contractor

shall breach any provision of this Agreement,

Texaco shall have the right (without first giving

notice of breach or demanding performance) to

declare this Agreement breached and to seek any

and all remedies available to Texaco. Texaco shall

have the right to remove Contractor from the job

and to act as Texaco sees fit in remedying

Contractor’s breach. The failure of Texaco to assert

a breach for the failure of Contractor to perform at

any time shall not be construed to be a waiver of

Texaco’s rights hereunder.

. Assurances - At Texaco's sole discretion, and as a

prerequisite to the commencement of any work

under this Agreement, Contractor may be required

to obtain a Performance and Payment Bond (in an

amount acceptable to Texaco and with a surety

company selected by Contractor and acceptable to

Texaco), an irrevocable letter of credit in favor of

G.

222

Texaco (in an amount and form and with terms

acceptable to Texaco), or any other assurance

acceptable to Texaco. Texaco agrees to reimburse

Contractor for the cost of obtaining the assurance.

Subsidiaries - Contractor agrees to perform work, if

and when work is directed to be performed from

time to time and agreed to by Contractor, under the

terms and conditions of this Agreement, for the

following Texaco Inc. subsidiaries:

Texaco Producing Inc.

Texaco Oils Inc.

Getty Oil Company

all Delaware corporations.

Contractor further agrees that the above-named

subsidiaries are separate and distinct parties to this

Agreement, and in this regard, wherever the word

“Texaco” appears in this Agreement, and including

but not limited to Paragraphs 4.B., 4.D. and 4.E., it

shall be considered to mean the party for whom the

work is being performed whether Texaco Inc. or the

above-named subsidiaries. Accordingly, Contractor

agrees that the rights, duties and obligations of

Texaco Inc. and each of the above-sated

subsidiaries to the Contractor, and the rights, duties

and obligations of the Contractor to Texaco Inc. and

each of the above-named subsidiaries are separate

and distinct.

23a

Contractor further agrees to provide each of the

above- named subsidiaries with additional insured

and waiver of subrogation endorsements to the

same extent that these endorsements were provided

Texaco Inc. in accordance with Paragraph 4.D.

Contractor also agrees to make billings in the name

of the party for whom the work was performed.

The representative of Texaco Inc. designated in

Paragraph 7.H. shall also be the designated

representative of each of the above-named sub-

sidiaries.

Liens Attachments or Other Encumbrances _

Contractor shall not at any time or times during the

term hereof or any time thereafter suffer or permit

any lien, attachment, or encumbrance to be

imposed by any person, firm, or corporation upon

the work performed hereunder or Texaco’s land or

property or any portion of the site on which the

work hereunder is to be carried on by reason of any

claim or demand against Contractor or Contractor’s

agents, employes, subcontractors or other

representatives and any such lien, attachment, or

other encumbrance, until Contractor shall have

secured the release thereof, shall preclude any

claims’ or demands by Contractor for any payment

whatsoever under or pursuant to this Agreement

and in the event that the same shall not have been

removed within five (5) days after written notice by

Texaco, Texaco, at its option, may remove or

release the same and Contractor shall reimburse

Texaco for the cost of removal thereof including

any legal fees and expenses and interest at the rate

of ten (10) percent per annim from the date of

payment by Texaco. Contractor hereby agrees to

indemnify and hold harmless Texaco, its successors

and assigns, and any parties in contract herewith

from any and all damages, expenses, losses, costs

ws how re nye

24a

including, but not limited to, attorney's fees) which

the above named parties may suffer as a result of

any lien or attachment being imposed as a result of

the performance of this Contract.

This provision shall not be construed as a waiver of

liability of the Contractor and/or its surety under

any provision of this Contract.

6. TEXACO’S OBLIGATIONS IN PERFORMING UNDER

THIS AGREEMENT

A.

Cooperation. Texaco agrees to cooperate with

Contractor and to do all things necessary, within

Texaco’s ability, to assist Contractor in the required

contractual performance.

Designated Representative. Texaco has designated a

representative in Paragraph 7.H. who shall be

charged with the responsibility of receiving notices

on behalf of Texaco and of acting for Texaco under

this Agreement.

Texaco’s Liability. Texaco expressly limits its

liability to Contractor to the consideration set forth

in Paragraph 2.

Material Equipment_, and Services to be Provided.

Texaco shall notify Contractor of all materials,

equipment and services that Texaco elects to

provide on a job by job basis in conjunction with

Contractor’s work.

Acceptance of Work. Texaco shall give, unless

otherwise provided, a written acceptance of term

and fixed turnkey work performed hereunder upon

completion of the work by Contractor. Texaco shall

make an acceptance inspection upon completion of

the work for Contractor’s full performance and

compliance with the Agreement documents,

25a

including any drawings, specifications, and/or

project conditions that may be furnished by Texaco.

Said acceptance shall not be construed to be a

release of ANY GUARANTEES or obligations of the

Contractor or a waiver by Texaco of any of its right,

under this Agreement.

7. ADDITIONAL PROVISIONS

A. Right to Audit.

(1) Contractor shall maintain during the course of

the work, and retain for not less than two (2)

years after the end of the calendar year of final

completion thereof, complete and accurate

records of all of Contractor's costs and

documentation of items which are chargeable

to Texaco under this Agreement; and Texaco

shall have the right at any reasonable time

during said period and during normal business

hours to inspect and audit those records by

authorized representatives of its own or any

public accounting firm selected by it. The

records to be thus maintained and retained by

Contractor shall include (a) payroll records,

including social security numbers and labor

classifications, accounting for total time

distribution of Contractor’s employes working

full or part time on the work, as well as can-

celled payroll checks or signed receipts for

payroll payments in cash; (b) invoices for

purchases, receiving and issuing documents,

and all other unit inventory records for

Texaco’s stocks or capital items; (c) paid

invoices and cancelled checks for materials

purchased and for subcontractor’s and any

other third parties’ charges; and (d) all other

records required to verify the accuracy of

Contractor’s charges. If such audit should

reveal a discrepancy between the amount or

(2)

26a

value of materials and/or services billed to

Texaco and that which is evidenced by

Contractor’s books and records, Texaco shall

have the right to adjust its account with

Contractor, which adjustment may necessitate

a refund of funds disbursed to Contractor. If

Contractor fails to maintain or make available

such books and records as provided herein,

Texaco will not be liable for any charges

based on such costs unless Contractor

produces adequate proof thereof.

No director, employe or agent of Contractor or

of any subcontractor of Contractor shall give

to, or receive from, any director, employe or

agent of Texaco, directly or indirectly, any

payment, loan, service, elaborate

entertainment or travel, or gifts of other than

nominal value, in connection with the work or,

without Texaco’s prior written agreement,

enter into any business arrangement, directly

or indirectly,, with any director, employe or

agent of Texaco that might adversely affect

Texaco or the director’s, employe’s or agent’s

judgment on behalf of Texaco. Without

limiting any general audit rights above, Texaco

may audit pertinent records of Contractor and

any subcontractor or vendor in connection

with the work to be performed hereunder and

all transactions related thereto for the sole

purchase of determining whether there has

been compliance with this paragraph (2).

Texaco’s right to audit under this paragraph

shall be for a period of not less than two (2)

years after the end of the calendar year of final

completion of the work performed pursuant to

this Agreement. If Texaco is unable to gain

access to the pertinent records of any of

Contractor's subcontractors, or vendors,

Contractor will expand all reasonable efforts

27a

to assist Texaco in obtaining the information

from its subcontractors and vendors necessary

to complete an audit.

Extra Work. Texaco shall have the right to order extra

work or make changes by altering, adding to, or

deducting from the original scope of work agreed, but

no extra work or change shall be undertaken by

Contractor unless a written order has been obtained

from Texaco or a separate estimate in writing shall have

been submitted to Texaco by Contractor and agreed to

in writing by an authorized representative of Contractor

and Texaco. Said order or estimate shall state the

extension of time, if any, allowed and specifically

provide for payment and the terms of payment for said

extra work, which shall be either:

(1) A fixed turnkey sum agreed upon in writing before

the work is performed, or if it is impossible to

agree on a fixed turnkey sum, then,

(2) In accordance with the rates contained in

Contractor’s Rental Rate Schedule made a part of

this Agreement as Exhibit “A”. A daily statement of

extra work shall be delivered to Texaco in

accordance with the provisions of Article 1.A. of

this Agreement.

Conflicts. In the event that there is a conflict between

the provisions of this Agreement and the provisions of

any other writing, then the terms of this Agreement shall

control.

Assignability. The rights and obligations contained in

this Agreement shall not be assigned by either party

without the express written consent of the non-assigning

party being first obtained except that Texaco may assign

this Agreement to any of its subsidiary companies

without first obtaining that consent.

28a

No Oral Modification. No modification of this Agreement

and no authorization for extra or additional work or for

eliminations or changes in specifications shall be binding

on Texaco unless it is in writing and signed by the duly

authorized representative of Texaco.

Optional Termination. Texaco at its absolute

discretion, may, by written notice to Contractor

terminate and abandon the construction of facilities or

suspend work in progress. Upon such discontinuance or

suspension, Contractor shall be entitled to receive and

or retain all its reimbursable costs as reasonably needed

to terminate the work hereunder and turn it over to

Texaco. Contractor shall retain or be paid by Texaco

that portion of the fixed fee, if applicable, which is

reasonable and proportional to the work performed by

Contractor prior to the termination of work.

Safety. Contractor shall take all measures and

precautions necessary or proper to provide safe working

conditions and to prevent any accident in connection

with the performance of work hereunder. Contractor

shall have the sole responsibility for the safety of its

enployes and subcontractors, as well as_ their

performance in accordance with the appropriate safety

practices.

Contractor shall conduct the work in a safe and practical

manner and in accordance with all applicable

governmental laws, orders and regulations, including but

not limited to those contained in the Code of Federal

Regulations (specifically 30 C.F.R §142 - Workplace

Safety and Health), as well as those of the United States

Coast Guard, the Minerals Management Service, the

Occupational Safety and Health Act of 1970, and any

amendments thereto, as well as the guidelines, recom-

mended practices or standards published by and

customarily adopted by the industry, including but not

limited to the American Petroleum Institute and the

Independent Association of Drilling Contractors.

29a

H. Notices and Payments. Any general notices required to

be made under the terms of this Agreement shall be

deemed to have been made if mailed by Certified Mail,

return receipt requested, as follows:

To Texaco:

Texaco Inc.

Post Office Box 60252

New Orleans, LA 70160

Ann: Contract Administration Group

To Contractor:

Danos & Curole Marine Contractors, Inc.

Post Office Box 217

Larose, LA 70373

(504) 693-3313

Any specific notices and payments required to be made

under the terms of this Agreement should be made as

specified above to the Texaco office directing the work

as follows:

Harvey Office: Texaco Inc.

1036 Destrehan Avenue

Harvey, LA 70058

Attn: Mr. K. B. Wisdom,

District Manager

Morgan City Office: Texaco Inc.

1201 Brasher Avenue

Morgan City, LA 70380

‘Attn: Mr. C. D. Journey,

District Manager

New Iberia Office: Texaco Inc.

1329 Jane Street

New Iberia, LA 70561-0457

Attn: Mr. R. K. Thomas,

District Manager

IN WITNESS WHEREOF, the parties have set their

hands and seals the day and date first above written.

EXHIBIT “C”

CONTRACT SUPPLEMENT

This attachment is incorporated in and made a part of

Contract, dated March 23, 1987, between Texaco Inc.,

hereinafter called "Company" and Danos & Curole Marina

Contractors, Inc., hereinafter called “Contractor.”

EQUAL EMPLOYMENT OPPORTUNITY

During the performance of the contract described

above, Contractor agrees to the following additional terms

and conditions to the extent they may be applicable to the

work to be performed under such contract in accordance

with the provisions of the following described Executive

Orders, Acts, and implementing rules and regulations issued

thereunder.

A. E.O. 11246, as amended by E.O. 11375 (Race, Color,

Religion, Sex and National Origin)

1. If the contract is in excess of $10,000, the

Contractor agrees to comply with the provisions

of Section 202 of such Order (the “Equal

Opportunity Clause”), which clause is

incorporated herein by reference pursuant to the

regulations promulgated under such Order (41

C.F.R. Sec. 60-1.4(d).

2. If the contract is in excess of $10,000! the

3la

Contractor certifies that it does not maintain or

provide, nor will it maintain or provide for its

employes any segregated facilities at any of its

establishments, and that it does not permit nor

will it permit its employes to perform their

services at any location, under its control, where

segregated facilities are maintained.* Contractor

agrees that a breach of this certification is a

violation of the Equal Opportunity Clause of

Executive Order 11246. Contractor further agrees

that (except where it has obtained identical

certifications from proposed subcontractors for

specific time periods) it will obtain identical

certifications from proposed subcontractors prior

to the award of subcontractors exceeding $10,000

which are not exempt from the provisions of the

Equal Opportunity Clause; that it will retain such

certification in its files; and that it will forward

the prescribed notice to such _ proposed

subcontractors (except where the proposed

subcontractors have submitted identical

certifications for specific time periods.**

If the contract is in excess of $30,000 and the

Contractor has more than 50 employes, the

Contractor agrees (a) to file annually, on or

before March 31 of each year, (or within 30 days

aftet the award of such contract if act filed within

12 months preceding the date of the award),

complete and accurate reports on Standard Form

100 (EE0-1) with the appropriate governmental

agency, in accordance with the regulations issued

by the Secretary of Labor (41 C.F.R. Sec. 60-1.7),

and (b) to develop a written affirmative action

compliance program ffor each of its

establishments in accordance with the

regulations issued by the Secretary of Labor (41

C.F.R. Sec. 60-1.40).

E.O. 11701 (Section 402 - Veterans Readjustment Act of

Oe eeeeeaEeeeEeEeEeEeEeEeEeEeEEeEeEeEeEeEeeEeEeEEEeEeEeOo

32a

1974)

If the contract is in excess of $10,000, the Contractor

agrees to comply with the affirmative action clause and

regulations promulgated under such Order (41 C.F.R.

Part 60-250) which clause is incorporated herein by

reference pursuant to Section 60-230.22 of such

regulations.

E.O. 11758 (Section 503 - Rehabilitation Act of 1973)

If the contract is in excess of $2,500, the Contractor

agrees to comply with the affirmative action clause and

the regulations promulgated under such Order (41

C.F.R. Part 60-741), which clause is incorporated herein

by reference pursuant to Section 60-741.22 of such

regulations.

E.O. 11625 (Minority Business Enterprises)

1. If the contract is in excess of $10,000, the

Contractor agrees to use its best efforts to

provide minority business enterprises with the

maximum practicable opportunity to participate

in the performance of such contract to the fullest

extent consistent with the efficient performance

thereof (41 C.F.R. Sec. 1-1.1310-2(a)).

2. If the contract is in excess of $500,000, the

Contractor agrees to comply with the Minority

Business Enterprises Subcontracting Program

clause promulgated under such Order (41 C.F.R.

Sec. 1-1,1310-2(b)), which clause is incorporated

herein by reference.

E. Section 905 (Railroad Revitalization and Regulatory

Reform Act of 1976)

1. The Contractor agrees to comply with the

requirements of Title 49 C.F.R. 265 Subpart B of

33a

the regulations promulgated under such Act

regarding "Nondiscrimination in Federally

assisted Railroad Programs” and _ the

nondiscrimination clauses therein are

incorporated herein by reference.

2. If the contract is for $30,000 or more, ‘the

Contractor agrees to comply with and implement

the Affirmative Action Program established

pursuant to Section 265.11 of 49 C.F.R.

F. Public Law 95-507, Section 211, 15 U.S.C. Section 637

(Small Businesses and Small Socially and

Economically Disadvantaged Businesses)

1. If the contract is in excess of $10,000, the

Contractor agrees to use its best efforts to

provide small business concerns and small

business concerns owned and controlled by

socially and economically disadvantaged

individuals, as defined in 43 F.R. 35809, with the

maximum practical opportunity to participate in

the performance of such contract to the fullest

extent consistent with the efficient performance

thereof in accordance with the regulations

promulgated by the Office of Federal

Procurement Policy (OFPP), 43 F.R. 35809, dated

May 25, 1980, which are incorporated herein by

reference.

2. Negotiated Contracts. If the contract is in excess

of $500,000, the Contractor agrees to comply with

the small business and small disadvantaged

business subcontracting plan as set forth in 45

F.R. 35810, dated May 28, 1980, which are

incorporated herein by reference.

G. Executive Order 12138 (Women's Business Enterprises

Program)

a er eres

34a

1. If the contract is in excess of $10,000, the

Contractor agrees to use its best efforts to

provide women owned businesses, as defined at

45 F.R. 358-15, with the maximum practical

opportunity to participate in the performance of

such contract to the fullest extent consistent with

the efficient performance thereof, in accordance

with the regulations of the Office of Federal

Procurement Policy (OFPP) issued pursuant to

this Order and appearing at 45 F.R. 35814, dated

May 28, 1980, which are incorporated herein by

reference. :

2. Contracts over $500,000 or $1 Million for

construction of any public facility. If the contract

is in excess of $500,000 or $1 Million for

construction of any public facility, the Contractor

agrees to comply with the regulations

promulgated by the Office of Federal

Procurement Policy (OFPP) appearing at 45 F.R.

35815, dated May 28, 1980, which are

incorporated herein by reference.

ACCEPTED THIS 27 DAY OF MARCH, 1987.

Footnotes

* As used in this certification, the term “segregated facilities”

means any waiting rooms, work areas, rest rooms and wash

rooms, restaurants and other eating areas, time clocks, locker

rooms and other storage or dressing areas, parking lots,

drinking fountains, recreation or entertainment areas,

transportation and housing facilities provided for employes

which are segregated by explicit directive or are in fact

segregated on the basis of race, creed, color or national origin

because of habit, local custom or otherwise.

** The form of the prescribed notice is as follows: NOTICE

TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT

FOR CERTIFICATIONS OF NONSEGREGATED FACILITIES.

35a

A Certificate of Nonsegregated Facilities as required by the

May 9, 1967 order on Elimination of Segregated Facilities by

the Secretary of Labor (32 Fed. Reg. 7439, May 19, 1967),

must be submitted prior to the award of a subcontract

exceeding $10,000 which is not exempt from the provisions of

the Equal Opportunity Clause. The certification may be

submitted either for each subcontract or for all subcontracts

during a period (i.e., quarterly, semiannually or annually).

Note: The penalty for making false statements in offers is

prescribed in 1§ U.S.C. 1001.

EXHIBIT “D”

NONDISCRIMINATION IN OUTER CONTINENTAL

SHELF CONTRACTING

30 CFR 270

This Exhibit is incorporated in and made a part of

Agreement No. NO-67-53 dated March 23, 1987, between

Texaco Inc. and Danos & Curole Marine Contractors, Inc.,

hereinafter called “Contractor."

During the performance of the contract described

above, Contractor agrees to the following additional terms

and conditions to the extent they may be applicable to the

work to be performed under such contract in accordance

with the provisions of the following described Title 30 of the

Code of Federal Regulations, Part 270.

If the contract is in excess of $10,000 the Contractor

agrees to comply with the requirements of Title 30 C.F.R. 270

regarding “Nondiscrimination in Outer Continental Shelf

Contracting,” effective June 21, 1985, and the non-

discrimination clauses* therein are incorporated herein by

reference.

ACCEPTED THIS 27DAY OF MARCH, 1987.

Footnotes

Oneoninget

ear cae BE

Re ea eerie Ss Te oe Oe eee ee

36a

*This Part provides that “(N)o contract or subcontract to

which this part applies shall be denied to or withheld from

any person on the grounds of race, creed, color, national

origin, or sex.”

EXHIBIT “E”

CERTIFICATE AND UNDERTAKING OF COMPLIANCE

WITH ENVIRONMENTAL LAWS

The undersigned (“Contractor”) hereby agrees and certifies

that:

1. No facility to be utilized by Contractor in the

performance of this Agreement is listed on the United

States Environmental Protection Agency List of Violating

Facilities. See Executive Order No. 11738 of September

12, 1973 and 40 C.F.R. 15.20.

2. Prompt written notification shall be given by Contractor

to Texaco Inc. of any communication indicating that any

facility is under consideration to be included on such

list.

3. All requirements of Section 114 of the Clean Air Act (42

U.S.C. 1857) and Section 308 of the Federal Water

Pollution Control Act (33 U.S.C. 1251), relating to

inspection, monitoring, entry, reports, and information

as well as all other requirements specified in said

Sections, and all regulations and guidelines issued

thereunder, shall be complied with.

4. The criteria and requirements listed above will be

included in all contractor’s subcontracts, and Contractor

will take such action as the Government may direct as a

means of enforcing such provisions. Contractor agrees

37a

to be responsible for ensuring that its subcontractors

comply with this provision.

Appendix

Appendix A

Order and Reasons entered on June 5, 2001, by

Honorable Sarah S. Vance, United States District

Judge

Appendix B

Judgment dated June 14, 2001, from the United States

District Court, Eastern District of Louisiana

Appendix C

Decision dated May 15, 2002, from the United States

Court of Appeals for the Fifth Circuit

Appendix D

Texaco, Inc.’s Master Work Agreement with

Independent

Contractor

Appendix E

Scott Nimelstein Deposition excerpts

Appendix F

Tommy L. Mathews, Jr. Deposition excerpts

Appendix 0

Ronald Ratcliff Deposition excerpts

Appendix F

Dary] Langlois Deposition excerpts

7 39a

CIVIL ACTION NO. 99-1456

SECTION "R"

MAGISTRATE (4)

The deposition of DARYL LANGLOIS was taken in the above-

entitled cause, pursuant to the following stipulation, before

Linda Brewer, Certified Court Reporter, in the offices of

Danos & Curole, 1602 Pinhook, Suite 301, Lafayette,

Louisiana, on the 14th day of August, 2000, beginning at 2;25

p.m.

A. Yes.

Q. And it was at that time that he requested you to try

and get him off of that rig?

A. He stated that he would like to have beer taken off of

the rig, yes.

Q. And isn’t it a fact that after that conversation, you

made some calls to try and get him taken off of the

rig?

A Normally we call Texaco to see where the

evacuation stands.

Q. Is it not a fact that you made a number of calls to the

Texaco dispatcher and were unable to reach him?

A. Something to that effect, yes. I mean, we could not

contact anybody because they were in evacuation.

Who was in evacuation?

Well, I'd imagine they were evacuating and they were

on the phones, just as we were.

Q Did you attempt to reach the dispatcher on a number

of occasions?

A Yes, I did.

Q And why couldn't you reach him?

I just - - I dont recall that far back. You know, I don't

know, to be honest with

4la

Q Your employees?

Yeah.

Q So you assumed that Phillip Allen was going to come in

with the evacuation of the other platforms?

A I assumed he was.

Q Was that the responsibility of Danos & Curole, or was

that the responsibility of Texaco?

MR. DABOVAL: Let me object. Lack of

foundation. He doesn’t know what the

contractual responsibilities are.

MR. WIEDEMANN: I didnt ask him

about contractual responsibilities.

MR. DABOVAL: Sure you did. You

asked him what their responsibilities were. It

had to come from somewhere.

MR. WIEDEMANN: (CONTINUING)

Q Can you answer the question?

A Repeat it.

Q Was it the responsibility of Danos & Curole or Texaco

to evacuate people from Texaco platforms?

A We had no - — we do not supply transportation to get

the people in.

SpE RT OR AI ot, LE

6

Oo - O& PY

42a

heard it, if anybody ever said it, if you saw anything in

writing. And my question is: To your knowledge, did

anybody in your company ever do that?

Not to my knowledge. And I don’t see how I would

even have that knowledge. That’s my point, I guess.

Well, whose knowledge would that be?

Whoever would do it. I mean, whoever would enter

into that. You’re asking me if I know. I don’t know.

Aren’t you a personnel supervisor?

Yes, I am - - or was.

You were in charge of personnel and when they went

and when they came back?

Yes, sir.

You were in charge of assigning personnel to rigs?

Yes.

And it’s your testimony that you don’t know anything

about any agreement that would permit Texaco to do

that insofar as your personal knowledge?

No.

Do you know of any employee, and more particularly

Phillip Allen, that ever signed any written document

or granted any verbal authority that they could be - -

or he could be designated to stay on a platform during

a hurricane or a storm?

No.

You recognized from your discussion with Mr. Allen

43a

that it was, in fact, a hazardous circumstance to be

working on the Plus-10 deck?

If the waves were going over the Plus-10 deck?

Yes. How far is the Plus-10 deck above the surface of

the sea; do you know?

Never been out there.

But if the waves were going over the Plus-10 deck,

you recognized that that would be a hazardous

circumstance for your employee to work under?

Yes.

Did Danos & Curole have any supervisor out there to

tell Mr. Allen what he should or should not do vis-a-

vis the work on the rig?

Not out there, no.

44a

Sigur, the Texaco supervisor?

MR. DABOVAL: Let me object. You

don’t know what Mr. Sigur was doing out

there. You don’t even know his position.

MR. WIEDEMANN: (CONTINUING)

Q You can answer the question. —

A I would have expected Phillip to know, after having

conversations with me, to stay inside.

Q That wasn’t my question. My question was: Would you

expect _ _ I'm not talking about the storm. I'm asking

you a question. Would you expect Mr. Allen on a day-

by-day and hourly basis to take directions and

instructions from Mr. Sigur, the Texaco supervisor, as

to what he was to do on a day-by-day basis.

MR. DABOVAL: Same objection.

A Yes.

MR. WIEDEMAMN: (CONTINUING)

Q There's nobody else out there to tell him what to do;

is there?

A I’m not there.

Q I understand you're not there. But if Mr.

oOo ?- @® ?

45a

this? Is that something they do on a day-by-day basis?

We tell our employees on a day-by-day basis to - - if

anything endangers them, to call us. And that’s when I

got to the point, when I found out he was down there,

to tell him that's not where you're supposed to be,

that basically at that point it doesn’t matter what a

Texaco hand says, he’s supposed to stay inside.

So Mr. Allen did call you and report that he was being

exposed to a dangerous circumstance on the Texaco

rig; did he not?

Yes. We established that. You've asked me that.

And that’s what he’s supposed to do?

What's that?

That’s what Mr. Allen is supposed to do it he’s told to

do something that he considers dangerous by a

Texaco supervisor, is to call you and tell you that it’s

dangerous?

MR. DABOVAL: Let me object.

Yes.

oS ? © °?

46a

Not that I was aware of

Did he ever have any emotional or mental

problems that you were aware of?

Not that I’m aware of.

Was he considered a valued employee of Danos &

Curole? ,

He was probably better than average.

And am I correct that he has not worked for you all

since the accident of September 9, 1998?

I don’t believe he has. I'm not 100 percent positive.

Do you know of any other reason why he has not

returned to work other than the accident that he

sustained?

I believe he has cancer now.

Do you know when he was diagnosed with cancer?

If I’m not mistaken, it wasn't that much longer after.

Do you know the reason that he did not return to

work is because he was injured in this accident, his

neck and his back and his stomach?

I guess for that time being until it was

47a

with Mr. Allen during this period of time?

I don’t know. It depends on where my statement

started I guess. I guess whenever the tropical storm - -

when the weather was getting bad. I don’t know the

exact t' me.

You mentioned on several instances - - and Mr.

Wiedemann mentioned it - - the date of the tropical

storm. And that confuses me a little bit because a

tropical storm can exist over days, weeks, or

whatever period of time. That’s why I'm confused,

and I don’t want the record to be confused by the

timing of all of this stuff. So that’s why my question to

you is: When did you first learn or hear from Mr. Allen

that he was out on the platform with any kind of

problems?

On 9/9/98.

Okay. It’s your testimony that you had a conversation

with him on 9/9/98?

Yes, I did.

Okay. And what was the subject of that conversation?

I mean, just that the weather was bad and,

8 G2 AERA:

48a

know what they needed to do to perform their work,

right?

Say it again. Repeat the question.

The customer’s expectations can be that the Danos &

Curole employee that you send out and assign to the

job is experienced at whatever needs to be done?

Yeah.

There is no agreement contractually, verbally, or

otherwise where there is any expectation that Texaco

employees will instruct or supervise how and the

method and manner in which that Danos & Curole

employee goes about his work, how to do his work,

right?

Not that I’m aware of.

On the accident investigation report, the reference to

work that was being done, opening the valve with a

wrench and he slipped and hit head, what was the

source of that information?

Phillip.

Did you ever talk to verify that he did, in fact, hit his

head?

The only other place I would have gotten

49a

Now, an employee such as - - is this an uncommon

situation, or does Danos & Curole assign a specific

person to jobs from time to time?

How do you mean?

Was Mr. Allen the only Danos & Curole employee on

this job on 643?

I don’t recall right off hand if there were any other

D&C people.

Is that uncommon that just a single employee will be

sent out to a job?

No.

We talked about supervisors and things like that. In a

situation where there’s a single Danos & Curole

employee needed to accomplish the job, wouldn't that

employee be considered his own supervisor?

Unless there was like a field foreman.

Okay. I want to then explore that with you because I

want to understand what the relationship is. Is it your

expectation that when you contract with a customer

and send personnel out there, that the customer has

to provide the supervision and instruction to those

employees?

es

50a

employees? Are you saying they’re supposed to

instruct them?

The Texaco hands normally do supervise us.

What do you mean by “supervise"? I said “instruct”;

you say “supervise.”

I mean, they’re over them. If there’s a decision that

needs to be made, if a Texaco hand says one way and

a Danos & Curole hand says the other way, it’s going

to go with Texaco.

Is the - - is Texaco expected by Danos & Curole to

instruct Danos & Curole employees on how particular

tasks have to be done or should be done, methods?

I wouldn't say on each individual task, no.

Is the role of the Texaco supervisor, field foreman, or

whatever you want to call it, company man, typically

to monitor the progress of the contractor’s work and

make sure that they’re getting what they contracted

for?

Yes.

But not to tell them how to do their job?

Not each individual task, no.

Q And you don’t expect that Texaco will provide

a foreman looking over the shoulder of the Danos &

Curole employees to make sure that how they’re

doing the job is right?

Not on each - - no, I don’t think so.

And in this particular instance with Mr. Allen, it

wasn’t necessary for a Danos & Curole foreman or

5la

supervisor to be there looking over his shoulder; is

that right?

MR. WIEDEMANN; Object to the form

of the question. There is no supervisor.

MR. DABOVAL: (CONTINUING)

Q And my question is: That wasn’t necessary because

Mr. Allen knew what he was supposed to be doing,

the job he was performing was certainly within his

experience and knowledge, right?

MR. WIEDEMANN: And I object to the

form of the question. The fact that he had a

Texaco supervisor, Mr. Jerome Sigur.

A Restate the question.

MR. DABOVAL: (CONTINUING)

Q My question is that what Mr. Allen’s job was On this

particular platform did not require a Danos & Curole

supervisor to be out there looking over his shoulder - -

A No.

Q - - and telling him how to do his work?

A No.

Q Mr. Allen, based on his experience or in the judgment

and assessment of whoever with Danos & Curole, was

expected to know how to do the pumping work or

whatever he was sent out there to do?

A Yes.

Q And that is what Danos & Curole guaranteed and

warranted to its customer?

52a

Yes.

Now, what about the employee like Mr. Allen, what if

in the course of their work - - and being a contractor

Danos & Curole is normally working on a job for

somebody, correct?

Correct.

And typically whether that be on land or offshore or

whatever, that’s on someone else’s_ structure,

property, or whatever, right?

Right.

Okay. Now, what is a Danos & Curole employee - -

whether he's a single one sent out to a job or a crew

sent out to a job, if they encounter a situation in the

work that they feel presents a danger or a risk of

injury, what are they supposed to do?

MR. WIEDMANN: Object to the form of

the question as calling for an opinion. He was

only on the job for a month at the time.

MR. DABOVAL: (CONTINUING)

Q

A

Can you answer that question?

Tell them to call the office.

Okay. Are they expected - - is anyone from Danos &

Curole, either back then or since or whatever, ever

instructed their employees to - - if the customer says

to do it, don’t ask questions, do it, I don’t care how

dangerous it is, we don’t want to hear from you?

No.

wo OD PO eS

A

53a

If they encounter in their judgment or opinion

something that they believe might be unsafe, they are

not to do it, right?

Right.

And to contact someone from Danos & Curole?

Yes.

And who would be the person to contact?

If it was during hours, they would probably refer them

to their - - at that time the personnel coordinators.

Okay. Now, when you spoke with Mr. Allen on the

9th, you said - - that was the first time?

Yes.

Did he at all express to you that he was forced to do

something that he felt was unsafe by Mr. Sigur or

anyone from Texaco?

MR. WIEDEMANN: I object to that as

repetitious. It’s been asked and answered

previously.

Do I feel he was forced?

MR. DABOVAL: (CONTINUING)

Q.

No, no, no. Listen to my question. Did he tell you that

he had been forced to do something that he felt was

unsafe by Mr. Sigur or anyone from Texaco?

54a

how anybody might have been taken off before you

spoke to him the first tine?

Not that I’m aware of.

Your reference in the accident investigation report to

flying or flighting, that was just based on what Mr.

Allen had said?

Yes.

Do you all give your employees any kind of training in

safety and the do’s and don’ts?

Yes.

Are your employees instructed not to that the

expectation is that theyre to be responsible for their

own Safety, also?

Yes.

Okay. And if they encounter a situation that they feel

is dangerous in their judgment and opinion,, to

contact the company?

Yes.

Have you ever had any problems with Texaco as far

as anyone from Texaco forcing Danos & Curole

employees to do things that that employee felt was

unsafe?

>. ©. 3? © +

55a

and he still hadn’t asked to come in because of any

injury or anything, right?

No, he didn't.

In the subsequent conversations or even in the initial

conversation, did he tell you why he was outside and

what he was doing in those conversations over the

phone?

When he said that he had gotten hit by a wave?

Right. Or at any time.

Yes.

Okay. What did he tell you he was doing?

Something to the effect of trying to keep the platform

on line.

But you don’t know what particularly he was doing?

No, not exactly.

Did he stay in for the remainder of the time like you

had suggested to him or even instructed him?

I’m not sure if he did.

When you called back and checked in, did you always

speak to him or did you ever speak to the other

fellow out there?

I don’t recall ever speaking to the other fellow. I think

it was always to him.

Not even the other guy answering?

He may have answered once or twice. I’m not sure.

56a

Was there ever a situation when you checked in with

him later and periodically that he expressed to you

that things were really dangerous out there and some

things had to be done in an emergency fashion?

He just expressed that he was scared. That’s about it.

But nothing was expressed to you that you took any

more steps to try and contact the people at Texaco

other than to call the dispatcher?

Not that - - not that I recall, no.

If he expressed something to you that it was a real

dangerous situation, that the security and stability of

the platform and the structure, you would have, I

assuime, taken other steps to try and get help; is that

right?

MR. WIEDEMANN: I object to the form

of the question. The witness has already

testified that it was a

57a

Yes.

And that first conversation that you had with Phillip

Allen was one in which he was expressing concern as

to why he had not been evacuated from 643; isn’t that

so?

Yes.

He called you first to - - in essence, to express his

concern and fear that he had not been evacuated?

MR. DABOVAL: Let me object to the

form. Concern and fear, what does that mean?

MR. WIEDEMANN: (CONTINUING)

Q

A

Is that not accurate?

Could you repeat the question again?

Is it not accurate that the first conversation that you

had with Mr. Allen was his expression of fear and

concern that he had not been evacuated in the face of

the Storm Francis?

Yes.

And as a matter of fact, that’s exactly what he told

you again when he came in on the 14th and you

recorded in your accident report. “At the time of the

accident, he was on the platform during Tropical

Storm Francis. Texaco had started flighting hands in,

but left Phillip and Jerry, their own supervisor, on the

platform." That’s exactly what he told you; isn’t that

so?

That's what he stated.

And that’s the same thing he told you in your

58a

telephone conversation on the 9th?

That's what he stated.

And is it not a fact that in another conversation after

that first conversation he told you that he had almost

been washed overboard by a wave; is that correct?

That’s what he stated.

And it’s your understanding that it was this occasion

when he indicated to you at a later time that he had

been injured?

When he came in, that’s what he stated.

Now, is it - - am I correct - - and I believe I had asked

you earlier - - Mr. Allen wrote in his handwritten note

that he had called on Friday and told you that he had

pulled a stomach muscle. Do you recall that in a

telephone conversation?

59a

foot or hit his nose, you would have put that down?

That’s what I would have put down.

You would record exactly what he told you and

exactly what the cause of that was, as he told you?

As he told me.

Now, it’s your policy, as I understand it, to circulate

this accident report to the customer, I presume so

that the customer will know that an accident

happened and they can have that information for their

own records; is that right?

Normally we'll do that if they request it. Q And you

would ordinarily also follow up the circulation of the

accident report with a conversation with somebody

with the company? ee

We'd fill out the accident report and then send it to

the safety department at that time.

The safety department of Texaco?

Of Danos & Curole.

And it is then the policy of the company to send that

to the customer?

60a

follow the requests of the supervisors like Mr. Sigur as

to what they should do or not do?

Within a reasonable scope.

So you're not expected, if Mr. Sigur or any other

supervisor for Texaco or any other company tells

your employee, | want you to work on the sump

pump, I want you to work on-an engine, I want you to

work on whatever, to follow that request?

A reasonable work assignment, yes.

Well, working on a sump pump, working on an engine,

working on whatever the supervisor decides he wants

you to work on is a reasonable assignment; isn't it?

Yes. If that's what the employee is trained to do, yes.

You wouldn't expect the employee if Mr. Sigur says to

work on the sump pump, to say no, I'm not going to

work on that, I'm going to work on something else;

would you?

It depends. Like if you’re speaking about an operator

that has that training, yes.

So you would expect the employee, assuming

6la

testify to the truth?

MR. DABOVAL: No.

MR. WIEDEMANN: Well, your

objection is to the form of —

MR. DABOVAL: But you're not going to

make statements on the record that are not

true, Larry.

MR. WIEDEMANN: You can read the

question back, please.

(COURT REPORTER READ BACK AS REQUESTED)

He reported that after the fact, and I told him after he

had already done that not to do anything further.

MR. WIEDEMANN: (CONTINUING)

Q

When he reported to you that he was down on the

lower deck and was almost washed overboard, you

told him to go inside and not do any further work; is

that correct?

Yes. He was already back inside when he called and

told me.

And you told him not to go outside further?

Yes.

But before that had occurred, he had expressed his

fear and concern about his

62a

second time you spoke to him was when he said he

was almost washed overboard by a wave. Is that not

correct?

No. The initial conversation is When I found out he

was almost washed over by a wave.

So now your testimony is that the second

conversation was when he expressed fear over why

he was not evacuated?

I believe that was it all along.

It was at that time that you told him you were going to

attempt to do something to get him evacuated?

Yes, | was going to try.

And to do something to get him evacuated, whether it

was before this incident or after this incident,

required you to get the intercession of Texaco; is that

not so?

MR. DABOVAL: Let me object.

My idea about telling him that I was going to try, but |

knew I’m not in charge of the flights. I can't do

anything about them.

MR. WIEDEMANN: (CONTINUING)

63a

A Did anybody - - I’m sorry.

Q Did anybody ever explain to you why Texaco

waited —

A No.

Q - - until it was too late to evacuate Mr. Allen and Mr.

Sigur?

A No.

Q Was it the job of Danos & Curole to determine when

to evacuate Mr. Allen and Mr. Sigur?

MR. DABOVAL: Asked and answered.

A No.

MR. WIEDEMANN: (CONTINUING)

Q Do you understand that the Texaco supervisor has an

obligation not to assign your people to do something

dangerous?

MR. DABOVAL: Let me object. You

haven't established any supervisor over Mr.

Allen.

MR. WIEDEMANN: Except Mr. Sigur.

MR. DABOVAL: No, including Mr.

Sigur. That’s your characterization of him

being Mr. Allen’s supervisor.

MR. WIEDEMANN: (CONTINUING)

Q What did you understand Mr. Sigur’s position was on

Q

643?

A Texaco operator

And he would be a supervisor of your employees out

there insofar as telling them what jobs he wanted

done?

I think earlier I explained if there was a decision that

needed to be made and the Texaco operator had his

opinion and mine had his opinion, normally the

Texaco hands are going to go with his opinion. Not

necessarily to say our guy is wrong or —

So would he not be a supervisor of your people insofar

as making a decision of what has to be done over

what your people want to do?

MR. DABOVAL: Object to the form of

the question.

I don’t think - - he may not have been a direct

supervisor. I don’t know what level operators - - I

know what level Phillip was. I don't know what level

the Texaco guy was. I don’t know if it was two exact

hands that both got stuck out there at the same time

or stayed out there at the same time or worked at the

location

65a

CIVIL ACTION NO. 99-1456

SECTION “R”

MAGISTRATE (4)

The deposition of RONALD RATCLIFF, JR., was. taken in the

above-entitled cause, pursuant to the following stipulation,

before Linda Brewer, Certified Court Reporter, in the offices

of Danos & Curole, 1602 Pinhook, Suite 301, Lafayette,

Louisiana, on the 14th day of August, 2000, beginning at 11:00

a.m.

in 1998?

Garrell Rowell.

Can you spell that?

G-a-r-r-e-]-] R-o-w-e-I-l.

a: ? &. >

Did you, prior to September 14th, 1998, have any

direct dealings with the plaintiff in this case, Philip

Allen?

A Sure.

Q In what way?

A Business relationship, friend relationship. We worked

for the same company. We communicated often. He

would stop in on his days that he came in and visit

with us two to three hours at a time. We lived in the

same town. We were raised with each other. We knew

each other.

Q And you would be the one that would assign him to

jobs?

66a

He was already assigned to Texaco when we came

aboard. But, yeah, if Texaco would release him, we

would find him somewhere else to go.

When you came to work for Danos & Curole in May of

1998, Phillip Allen was already

A

67a

acknowledge that contractor is an independent

contractor. At such, Texaco shall have no voice in the

discharge, supervision, or control of contractor's

employees, representatives, or subcontractors or in

fixing their number, compensation, or hours of

service. Texaco shall have no right to control the

manner of contractor’s performance but Texaco and

its representatives shall have the right to inspect the

work performed and make suggestions and comments

thereon.”

Is that consistent with your understanding of the

relationship?

Sure.

MR. DABOVAL: At what point in time?

MR. WIEDEMANN: In September of

1998.

What you mean’

MR. WIEDEMANN: (CONTINUING)

Q

Is there anything within what you just read that is

inconsistent with your understanding of the

relationship between Texaco and Dance & Curole

referable to

68a

our employees should get a raise. This says one thing,

but some things happen differently. Just because

they're under Texaco’s supervision, they see their

daily performance. That says that, but, you know, |

can't give a, guy a raise unless Texaco approves .

So what you're saying is that at least your knowledge

of what takes place is inconsistent with what Texaco

describes in this contract?

Not necessarily. You know, it’s a big

contract.

It says that Danos & Curole .is an independent

contractor. Do you understand that to be the case?

Yes, we are.

And it says as such, Texaco will have no voice in the

discharge. You say they have all voice in discharge?

Yes. If they don’t want somebody, then we replace

them.

They tell you all to replace them?

That's our business.

What would happen, if Texaco didn't like

69a

what you're talking about, zone of

danger.

MR. WIEDEMANN: (CONTINUING)

Q

“Zone of danger” means an approaching weather

system that may represent a hazard to personnel on a

rig or a platform. You understand that?

Yeah, I understand. I mean, what phase are we at? |

mean, are we past the point where I've already made

contact with them?

No.

When it just touches the edge of the Gulf, or are we

within a hundred miles of where it will probably

strike?

We're at the point where you, as a personnel

coordinator in 1998, would make a decision that

something, whatever it is -

You have bad weather?

~ represents a hazard.

| would first make contact with my customers and my

employees, make sure -find out either they're in or

out.

Who would make a decision as to whether they would

come in or they'd stay out?

Who would make that decision?

Yes.

The customer would make that decision.

i a <n ee

7 ae eae

70a

The customer in this instance would be Texaco?

Yes, sir.

When you say you would contact your employees and

your customers, what would you contact your

employees for?

Just find out if you do come in and you do hit the

beach, make contact with me so that I can know your

whereabouts because you're still on a scheduled job.

And how would you contact the employee?

By phone.

You have a phone —

By cell phones, personal phone. I have phone numbers

of them home.

I'm talking about from your company in Morgan City

to the rigs, what kind of contact would you have?

What you mean, what kind of contact?

Well, you can’t yell at them.

By phone.

So you have to have some means of getting

Oo ? © ®?P

7la

Ask to talk to them.

Which means you could talk to them

directly?

Yes, sir.

Did you have any other means of

communication?

No, sir.

You didn’t have telefax or e-mail communication

capabilities?

Not at that time, I did not.

In 1998?

In 1998, I did not.

So, as I understand it, Danos & Curole in September of

1998, did not have e-mail -A Danos & Curole might

have. Ronnie Ratcliff did not.

Do you know whether Danos & Curole did? A I cannot

not answer that because I don’t know.

But you as personnel coordinator-A Did not have the e-

mail address to West Cam 643-A, no, sir.

And you did not have telefax communication?

I’m sure they did, yes, sir. I’m sure

72a

My question was: You could suggest to Texaco that |

think my employees ought to be evacuated with a

storm approaching, but then the ultimate decision

whether or not they would be evacuated would be

Texaco’s decision?

Correct.

Have you ever suggested that an employee be

evacuated when Texaco did not evacuate?

No, sir.

Do you know - - did Danos. & Curole have any

agreement with their employees such as Phillip Allen

that they could be forced by Texaco to stay on a

platform during, a storm?

Do I have any knowledge of Texaco forcing an

employee to stay?

No. Listen to my question, please. My question was:

Did Danos & Curole have any agreement, verbal or

otherwise, with an employee such as Phillip Allen

that that employee could be forced to stay on a

Texaco platform during a storm without his or her

consent?

I do not know.

A

Q

73a

forced to stay on a platform during a storm since

everybody wants to get evacuated?

I do not know.

Is it your testimony that Danos & Curole can subject

one of its employees to the exposure of a hurricane or

a storm by denying them the opportunity to be

evacuated?

No, sir, we do not deny anybody the opportunity to be

evacuated.

Is it your testimony that Texaco in 1998 could force

one of your employees to remain on a platform and

deny him evacuation in the event of a storm

approaching?

MR. DABOVAL: Let me object to the

form of the question unless this witness has

any personal knowledge from his position

with Danos & Curole concerning any

contractual or verbal agreements. By that, |

don’t think he's in a position to testify about

what Texaco can or can't do.

Correct.

MR. WIEDEMANN: (CONTINUING)

Do you know of any written contract between Danos

& Curole and Texaco in existence in September of

1998 whereby Texaco with the authority of Danos &

Curole could have forced one of your employees to

remain on a rig during a storm that presented a hazard

to his person?

No, I do not.

Do you know of any verbal contract between Danos &

A

74a

Curole in existence in September of 1998 that would

permit that to occur?

No, sir.

Do you know how and under what circumstances

Phillip Allen was compelled to remain on Texaco 643

during the storm designated as Tropical Storm

Francis in September of 1998?

Do I know why he was kept?

Do you know under what circumstances he was kept

on 643 during Tropical Storm Francis?

It sounds like I'm answering — making a decision of why

he was kept out there. I

75a

-- for Danos & Curole?

Yes, sir.

Do you have any personal knowledge or familiarity

with Mr. Allen’s work on the 643 and how that was

conducted in terms of how he knew what to do on

any given day or during the day?

Are you asking me do I think he done his job well?

No. I’m asking you: Are you aware with personal

knowledge of how he went about doing his job?

No, sir.

Now, Danos & Curole contracted with Texaco to

provide personnel and equipment necessary to

provide whatever services needed, right?

Yes, sir.

And the personnel are to be experienced personnel in

whatever that job is?

Yes, sir.

And not someone that you necessarily -the customer

needs to tell how to do the job that they’re sent out to

do?

Correct. When a request would come in, we would fill

it with the proper training requirements that were

needed.

So in terms of — that’s the business of Danos & Curole,

to provide those services as experts?

Yes, sir.

oO: * © 2

76a

So if you send a worker out such as Mr. Allen or any

other workers to a customer on a job that you

contracted for, that customer is not expected to

control the details of how he accomplishes his work

or train him or anything of that sort, are they?

I’m sure there’s a briefing of the expectations, but —

The general scope of the job?

Yeah, the employee knows what he needs to do.

It’s not part of any agreement or expectation that the

customer is to provide a foreman of sorts to

specifically oversee the details of how he’s doing his

work and to supervise that and instruct him on how to

do the work as opposed to the customer telling him

what needs to be accomplished and monitoring the

results?

Correct.

Did you ever have the opportunity to look at Mr. Allen’s

personnel files to determine his employment history?

No, sir.

Do you know whether or not Mr. Allen ever had

missed any work or had any prior injuries?

No, sir.

Who handles — as personnel coordinator, you

wouldn’t be responsible for maintaining the personnel

files?

If we sent him to training, we would put the training

certificate in his file. But as far as his signing of all of

his paperwork and coming to work for us, no.

77a

Q What about if he had an illness or injury on the job,

who would handle that within D&C?

We would have initial contact of that.

“We” meaning the personnel coordinators?

The personnel coordinators would know of it.

Go ? © ?

All right. Now, you had only been

78a

CIVIL ACTION

NO. 99-1456

SECTION "R"

MAGISTRATE (4)

Deposition of SCOTT

NIMELSTEIN, taken on April 12, 2001, in the offices of

Texaco, Inc. 5th Floor, Texaco Center, 400 Poydras Street,

New Orleans, Louisiana.

ee? oe

employees. They are not special contractors doing

projects on their own.

And one of the ways that they don’t function as

Texaco employees is they don't fall into the Texaco

retirement program?

Yes.

They don’t fall into the Texaco medical coverage

program?

No.

They don't fall into the stock participation

program?

No.

The 401 K program; is that right?

Sure.

So it doesn’t cost Texaco as much money to employ

a subcontractor like D & C?

I don’t know. That might be true. What I do know is

79a

| think we would pay a certain amount of money

above and beyond what we would pay our own

people that pays the employer for them to be able

to fund their benefits but I don’t know the exact

numbers.

And do you have the right — Do you issue any

payroll checks to D & C — I mean to the employees

like Mr. Allen?

No.

Did you take any withholding taxes out for Mr.

Allen, Social Security, income tax?

No.

They are not on your payroll at all?

No. I'm only talking about effectively what's going

on in the field.

But they are not in any way listed insofar as federal

taxation, state taxation, Social Security, as Texaco

employees?

No.

And they are not listed as Texaco employees

insofar as any Texaco benefits?

No.

And am I correct that it’s only their employer that

can fire them?

No, that’s not true. We —— I mean as far as our

facility goes we can get rid of them if they are not

following safety procedures or whatever. We can

dismiss them immediately.

80a

Q. And how do you go about dismissing them?

A. We just tell them to go back.

Q. And how do you determine that you are going

8la

CIVIL ACTION

NO. 99—1456

SECTION “R”

MAGISTRATE (4)

MAGISTRATE (3)

Deposition of TOMMY L. MATTHEWS, JR., taken on

Thursday, April 19, 2001, in the offices of Texaco, Inc., 400

Poydras Street, 5th Floor, New Orleans, Louisiana.

Q. Okay. So, apparently somebody put Phillip Allen's

name on the list of nonessential personnel to be

evacuated; is that correct?

It looks that way.

And then somebody scratched that off?

Correct.

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So, apparently the information that Ms. Little got

initially -

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Price.

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Price, I’m sorry. The information that Ms. Price got

from the field initially was -

— incorrect.

— that Phillip Allen was not an essential person?

Correct.

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That wouldn’t have been something that she would

have decided, that would have been something

somebody out in the field decided?

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Correct.

Do you know who would have decided that insofar as

643 was concerned?

It could have been the pumper that brought it to light.

But I mean who would have told her initially that

Phillip Allen is nonessential?

Whoever made the flight manifest out and

provided it to her.

In other words, the people in the field

would prepare the manifest?

Correct.

But you don’t know who prepared this

manifest?

No, sir, I don't.

Well, who would be the kind of people

that would prepare this?

The production foreman that’s out there, there would

be a production foreman that would be assisting it,

and most of the time it’s put together by the CCPO,

which is the clerk.

CCPO stands for what?

Central control platform operator.

Okay. And who would that be?

I don’t know who they were at the time.

Okay. But the people who would give that information

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to the CCPO would be who?

A. The POP, all the other platforms.

Q. Okay. so, the CCPO would have gotten this

information from the platforms -

A. Correct.

Q. — and then either he or somebody like

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A. It’s every tine a storm occurs.

Q. So, that decision is made when the

evacuation process begins?

A. That’s correct.

Q. And how does Texaco get the authority to designate a

subcontractor’s employee as an essential personnel to

stay out in the storm?

A. Well, nobody stays out in the storm.

Q. Well -

If you have a full evacuation, nobody stays out in the

storm. We go in and get them out.

Q. Well, in an evacuation, how does Texaco, if you know,

go about getting the authority to designate a

subcontractor’s employee as an essential person?

A. It’s the determination — the best I can recollect it to

you is if the determination of that particular individual

is incremental to the operation of that particular

platform. So, if that person would leave that platform,

that platform wouldn't be able to properly run or you

couldn't bring it back up on line. So, you know,

nonessentials can be declared to Texaco personnel

also. It all encompasses the people who are out there.

Q. But the fact of the matter is - what you’re saying is that

a subcontractor employee, without the permission of

his employer or without the permission of the

employee, can be designated by Texaco as an

essential employee and left out on the platform,

during the storm.

MR. DABOVAL: Let me object to the use of

the word “Left out”.

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THE WITNESS: Right. This is not a

determination of leaving someone out there during a

storm. This is a determination of if the storm comes

or if there’s a storm somewhere in the area, that

person is essential to the operation and the safe

evacuation of all the people involved. So, that’s your

determination, if he’s removed from that facility, he

puts that facility at risk.

BY MR. WIEDEMANN:

Q. Let me just state to you that Mr. Sigur, who is an

employee at Texaco -

A. Correct.

Q. ~— wrote a statement, which I don’t have

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haven't determined when it was declared to be a

Level-3?

From past experience?

No, just from - -

Other hurricane evacuations?

No. You went back to, I assume, your rig, 189, your

platform- -

Correct.

- - after this storm had passed and you had access to

documents, I'm sure, and people. Did you learn that,

when going back, when this was declared a Level-3

that everybody was evacuated?

No, sir, I didn't.

At some point in time, was everybody evacuated from

Garden Banks-189?

Correct.

And that is a platform which is west and south of the

platform that Mr. Sigur and Mr. Allen were on?

I believe so, yes, sir.

Did you learn why, if Garden Banks-189 was

evacuated, why the platform that Mr. Allen and Mr.

Sigur were on, which I believe is 643-A, why they were

not evacuated?

From what I gathered., they made the determination

to suspend flight operations.

In other words -

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They were scheduled to cone in and flight operations

Were suspended.

Between the time that this was declared to be a Level-

3 evacuation and the ability to evacuate Sigur and

Allen, the weather conditions had gotten such that the

helicopters couldn't operate?

I can’t say that for sure.

MR. DABOVAL: Object to the form.

BY MR. WIEDEMANN:

Q. Well, you indicated that a moment ago and that’s what

I understood you to say.

A. Indicated that in what context?

MR. DABOVAL: Let me object. That’s not a

question, that’s a statement.

BY MR. WIEDMANN:

Q. Well, I thought you said a moment ago that they had

suspended flight operations.

A. That’s correct.

Q. So -

But that was not in reference to any weather

conditions that I know of.

Q. well, why did they suspend flight operations?

You would have to ask the pilots involved in this. It’s

their call, they fly to a certain point and then they use

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their information to suspend flight ops.

So, Air Logistics suspended flight operations; is that

your understanding?

That’s my recollection, yes, sir.

And who made that decision?

To suspend flight operations?

Yes.

The pilots. I don’t know who the pilots are. There’s

too many aircraft involved in the operations.

Well, do you understand that this was an individual

pilot decision or a decision by Air Logistics or do you

know?

I don’t know. I would have to assume that it would be

an overall decision by Air Log.

Were there other people left out that they had

scheduled to evacuate?

Not that I’m aware of.

You mean the only two left in the western Gulf on.

platforms were Sigur and Allen?

Either that or there was a skeleton crew left on the

rigs. I can’t answer that.

I know, but I’m talking about on your platforms.

The only two left, yes, sir.

The only two left on the platforms in the western Gulf

were Allen and Sigur?

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Correct.

How did you learn that information?

How did I learn that?

Yes.

I don’t recall.

And do you know to whom the decision to cease

flights would have been communicated to Texaco?

Probably Ms. Price.

Ms. Price?

Yes, sir.

And she would have notified her superiors?

Probably.

But it’s your understanding that that was a decision

that was made by Air Logistics and

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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