Landmark Trial Wins Pave the Way for Pipeline Expansion and Define Servitude Rights
In first-of-their-kind cases, Phelps’ litigation team secured permanent injunctions to help a leading energy company construct and operate its $1 billion natural gas pipeline without interference from a competitor. As pipeline networks expand to meet growing energy demands, this victory supports infrastructure growth and sets clear standards for servitude rights.
The disputes involved contested rights in the construction of a 176-mile natural gas pipeline from the Haynesville Basin to South Louisiana. Phelps’ client obtained servitudes, easements and rights-of-way agreements from current landowners, but a competing energy company argued its contracts with prior owners should halt the project at crossing points with its existing pipelines.
In multi-day bench trials, the courts considered two main questions:
- Do pre-existing servitude rights prevent landowners from granting new servitudes?
- Would the construction of the new pipeline adversely affect the pre-existing servitude rights?
The courts determined that the competitor’s servitude rights had either prescribed or were limited to the actual pipeline areas, and that the new pipeline would not adversely affect existing rights. They agreed with Phelps’ argument that the language of the existing servitudes did not grant exclusive control over the land. The landowners retained the right to grant additional servitudes, provided they did not interfere with the existing pipelines. The courts recognized the client’s rights to lay, operate and maintain its natural gas pipeline in Beauregard, DeSoto and Sabine parishes.
Phelps partner Brad Boudreaux and associates Anthony Gambino and Nena Eddy secured the trial wins in cases that garnered national media attention for their significant impacts on the oil and gas industry.