Angus Chemical Company v. Glendora Plantation, Incorporated

782 F.3d 175 (5th Cir. 2015)

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Nature of the Case

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Facts

P owns a facility that produces nitroparaffin products, a byproduct of which is wastewater containing formaldehyde and acetone. The wastewater is removed through an underground pipeline that goes through land owned by others to a wastewater treatment plant three and one-half miles away. At issue here is the 'Right of Way Easement Option' granted by George and Mary Tilford Smelser. It gave an option to acquire a right of way and easement with the right to construct, maintain, inspect, operate, protect, alter, repair, replace and change the size of a pipeline for the transportation of liquids, gases, solids in either singular or mixed form or any other substances which can be transported through pipelines. P's predecessor exercised the option and it 'automatically [became] an indefeasible right of way agreement without further actions being necessary, and all of the rights, title and privileges herein granted . . . thereafter [became] vested in [IMC], its successors or assigns.' In 1979, IMC constructed a 12' pipeline and P subsequently purchased the rights from IMC, and D purchased the Smelser property. Leaks from the pipeline occurred in 2007, 2010, and 2011, after which P decided to replace the pipeline. In 2010, P began to design a 16' pipeline to replace the 12' pipeline. All but D agreed to abandon the older pipeline. On January 27, 2012, P proposed an agreement that would allow it to abandon in place the older pipeline and offered to pay D for authorization. D did not agree. P filed a complaint seeking a declaratory judgment that P may abandon the 12' pipeline after a new pipeline is in service. P began construction of the 16' pipeline. It was completed and placed into service on October 3, 2012. The 12' pipeline was taken out of service that same day. By the end of November of 2012, P flushed, cleared, plugged, and abandoned the 12' pipeline in place. D filed a motion to compel discovery, which was opposed by P. P moved for summary judgment. D moved the district court to (1) find that P did not have authority under the Agreement to abandon the 12' pipeline. The magistrate judge denied D's motion to compel discovery and D appealed to the district court judge. D filed a motion to compel discovery, which was opposed by P. P moved for summary judgment. D moved the district court to find that P did not have authority under the Agreement to abandon the 12' pipeline. The magistrate judge denied D's motion to compel discovery and D appealed to the district court judge. The district court granted P's motion for partial summary judgment and denied D's motion for partial summary judgment and motion to compel discovery. D appealed.