Pipelines

1
Pipelines One Call

• Dan Richards
• Hilgers Bell Richards LLP
• Austin Bar Association Luncheon
• December 12, 2007

2
Personal Introduction

• Partner Hilgers, Bell Richards
• General Litigation
• Construction
• Commercial
• Personal Injury
• Fiduciary
• Pipeline Experience
• Condemnation, Trespass, Construction, Rupture

3
CITGO v Mastec - Background

• CASA Pipeline
• 8 Petroleum Products
• Corpus Christi Arlington
• May 1999
• Ruptured by excavator
• 389 Barrel spill
• Surface and ground water contaminated

4
CITGO v Mastec - Background

• Fiber Optic Race to Houston
• Enron Broadband installation near Luling
• Contracted to Bechtel
• Subcontracted to Mastec North America
• Poorly coordinated subsidiaries
• CS Directional Boring making One Calls
• Wilde Construction trenching

5
CITGO v Mastec - Background

• Other Improper Crossings
• Duke Energy
• Agreed to meet on site
• Bored under pipeline before scheduled meeting
• Telephone Electrical Lines
• Cut on multiple occasions
• Only Duke crossing admissible

6
One Call Statute

• Utility Code Chapter 251
• 251.151(a) excavator notification bracket
• 14th day prior through 48 hours prior
• 251.151(c) Operator may have rep present
• 251.151(c) may set a mutually agreed-to time to
  begin the excavation.
• 251.157 (c) An excavator who has fully complied
  may not be liable for damage to facility not
  marked in accordance with this chapter.

7
Multiple One Calls Faxed
8
Prior To Rupture

• CITGO Rep contacts CS
• Meetings on site
• Could not locate line
• Staked general area
• Agreed to meet and uncover with backhoe before
  excavation

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12
Trial Issues

• No written confirmation of agreement
• Only testimony by CITGO rep
• Several hand drawings of stake locations
• Mastec Contended they complied with statute

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14
Avoiding Litigation

• Better documentation of agreement
• Fax confirmation to excavator
• Consistent documentation of One Call responses
• Consistent documentation of onsite meetings
• Better photographic onsite evidence