HOUSTON, Feb. 4, 2004 (PRIMEZONE) -- The Port of Houston Authority has received a unanimous favorable decision from the Fifth Circuit Court of Appeals concerning relocation costs for pipelines that cross the Houston Ship Channel. The three-judge panel issued its unanimous opinion in "Air Liquide, et al. v. U.S. Army Corps of Engineers and the Port of Houston Authority" in favor of the Port of Houston Authority.
At issue have been more than $100 million of costs to relocate scores of pipelines to accommodate the federally mandated widening and deepening of the Houston Ship Channel. Pipeline owners for various chemical and petroleum companies had filed suit in 1998 to require the Port of Houston Authority to pay for the relocation of their privately owned pipelines in the Houston Ship Channel. The Port of Houston Authority argued that the relocation was mandated by the United States Army Corps of Engineers as part of the deepening and widening project, and that both federal law and the pipeline licenses required the pipeline owners to bear the costs of relocation.
Two years ago, a district court summary judgment favored the pipeline owners, holding that the Port Authority was responsible for the relocation costs. On January 30, the Fifth Circuit vacated the district court's order and rendered judgment for the Port of Houston Authority, holding that the pipeline owners were solely responsible.
"The Port of Houston Authority is pleased with the unanimous decision from the Fifth Circuit," said Jim Edmonds, PHA chairman. "We pursued the appeals process because we strongly believe in the importance of navigational servitude and our role to maintain and protect the ship channel. As owner of the land under the water of the ship channel, the Port Authority sought to protect the interests of Harris County taxpayers."
In their opinion, the justices found that the provision in the Rivers and Harbors Acts of 1899 requires that "pipelines and other structures beneath navigable waters are to be relocated at no expense to the United States if required by federal navigation interests or projects." The justices further found that each owner has a permit and a license requiring that they must pay to relocate their pipelines at their cost for the channel.
"This decision forces the pipelines to honor the commitments they made when signing the licenses, which includes paying for required relocation costs," said Tom Kornegay, PHA executive director.
To read the full text of the Fifth Circuit Court of Appeals' decision, visit the Port of Houston Authority's website: http://www.portofhouston.com/publicrelations/newsroom.html
The Port of Houston Authority owns and operates the public facilities located along the Port of Houston, the 25-mile long complex of diversified public and private facilities designed for handling general cargo, containers, grain and other dry bulk materials, project and heavy lift cargo, and other types of cargo. Each year, more than 6,600 vessels call at the port, which ranks first in the U.S. in foreign waterborne tonnage, second in overall total tonnage, and sixth largest in the world. The Port Authority plays a vital role in ensuring navigational safety along the Houston Ship Channel, which has been instrumental in Houston's development as a center of international trade. The Barbours Cut Container Terminal and Central Maintenance Facility are the first of any U.S. port facilities to develop and implement an innovative Environmental Management System that meets the rigorous standards of ISO 14001. Additionally, the port is an approved delivery point for Coffee "C" futures contracts traded on the New York Board of Trade's Coffee, Sugar & Cocoa Exchange. For more information, please visit www.portofhouston.com
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