SARAH S. VANCE, District Judge.
Before the Court is defendants' motion to dismiss for lack of jurisdiction.
This dispute stems from fees allegedly owed to plaintiffs for tools and services provided to the ATP TITAN, a floating production facility moored approximately 65 miles offshore of Louisiana in a production field owned by ATP Oil and Gas. Six plaintiffs, Warrior Energy Services Corporation, Fastorq LLC; Stabil Drill Specialties LLC, Workstrings International LLC, and Superior Energy Services, LLC d/b/a Superior Completion Services, contend that they provided supplies and services to the ATP TITAN, the costs of which have not been paid by ATP Titan, a limited liability company that owns the platform.
Defendants filed a motion to dismiss for lack of jurisdiction on the grounds that the ATP TITAN is not a vessel but a floating production platform, thus depriving the Court of in rem jurisdiction over the ATP TITAN.
The first issue before the Court is whether the ATP TITAN is a vessel. Unless
The ATP TITAN is a triple-column, deep-draft, floating production facility.
Although it is buoyant, the ATP TITAN is securely moored to the floor of the Outer Continental Shelf by twelve moorings connected to mooring piles that are embedded over 205 feet into the sea floor and weigh over 170 tons each.
The statutory definition of a vessel includes "every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water." 1 U.S.C. § 3. Within this general definition, courts have analyzed the vessel status of various types of offshore structures. The Fifth Circuit Court of Appeals has addressed the distinction between vessels and other facilities used in offshore oil and gas operations on more than one occasion.
The Fifth Circuit recently revisited the issue of which offshore structures constitute vessels in Mendez v. Anadarko Petroleum Corporation. 466 Fed.Appx. 316, 318 (5th Cir.2012), cert. denied, ___ U.S. ___, 133 S.Ct. 979, 184 L.Ed.2d 760 (2013). In assessing whether the Red Hawk, a floating gas-production spar, was a vessel, the Fifth Circuit relied on the Supreme Court's holding in Stewart v. Dutra Construction Co., 543 U.S. 481, 125 S.Ct. 1118, 160 L.Ed.2d 932 (2005), that a vessel is "any watercraft practically capable of maritime transportation, regardless of its primary purpose or state of transit at a particular moment." Id. at 318. The court found that because the Red Hawk was permanently affixed to the sea floor and could be moved only at great cost after detaching its moorings and severing its pipelines, the spar was "theoretically capable of maritime transport but not practically capable." Id. at 319. Accordingly, the court held that the Red Hawk was not a vessel. Id. at 318-19.
The ATP TITAN does differ from the Red Hawk in its ability to move laterally and in its design. The Red Hawk could not move laterally because its mooring lines were permanently taut. Mendez, 466 Fed.Appx. at 317. Conversely, the ATP TITAN can reposition itself over the wells it sits on up to 200 feet from its center location by using its anchor lines, although the ATP TITAN has never been repositioned more than 130 feet.
In considering the effect of the ATP TITAN's status as a hybrid semi-submersible/spar, the Court first rejects the notion that the structure qualifies as a semi-submersible drilling rig or modular offshore drilling unit. Although the ATP TITAN has been involved in drilling activities, it does not have a built-in capacity to drill but rather served as a platform for a drilling rig at one time.
Therefore, the relevant inquiry is not whether the ATP TITAN has drilled but whether its capacity for movement distinguishes it from the Red Hawk and other structures designated as spars. In Stewart v. Dutra, which the Fifth Circuit relied on in Mendez, the Supreme Court held that a non-self-propelled dredge Super Scoop was a vessel. 543 U.S. 481, 125 S.Ct. 1118, 160 L.Ed.2d 932 (2005). The Super Scoop was a floating platform from which a bucket was suspended beneath the water to remove silt from the ocean floor. It had a captain, crew, and navigational lights. Id. at 484-85, 125 S.Ct. 1118. Using a limited means of self-propulsion through its anchors and cables, the structure moved over water "every couple of hours." Id. at 485, 125 S.Ct. 1118. The Super Scoop was towed by tugboat for longer distances and was towed from California to Boston to work on the project at issue. Id. As discussed above, the Supreme Court held that a watercraft need not be used primarily for transportation on water to be a vessel, but its use in this area must be a practical possibility rather than a merely theoretical one. Id. at 496, 125 S.Ct. 1118. The Court stated that "dredges served a waterborne transportation function, since in performing their work they carried machinery, equipment, and crew over water." Id. at 492, 125 S.Ct. 1118. The Super Scoop was stationary only temporarily and was not permanently anchored during its work in Boston Harbor. Id. at 496, 125 S.Ct. 1118.
By contrast, the ATP TITAN is moored to the floor of the Outer Continental Shelf by twelve moorings, each of which is embedded 205 feet into the sea floor and weighs over 170 tons.
Despite the structure's design allowing it to shift laterally and to be moved, the Court finds that the ATP TITAN does not serve a waterborne transportation function in any practical sense. The dredge at issue in Super Scoop was moved much more frequently and easily. That the ATP TITAN can be moved does not qualify it as a vessel, given the enormous expense associated with its relocation and the extent to which it is securely attached to the floor of the Outer Continental Shelf in its role as a production facility. Further, there is no evidence that the ATP TITAN frequently uses its mooring lines to shift itself, and in any event, the Fifth Circuit held in Fields that the spar at issue was not a vessel, despite its ability to move up
Plaintiffs question the precedential value of the Fifth Circuit cases cited here in light of the recent Supreme Court case, Lozman v. City of Riviera Beach, Fla., ___ U.S. ___, 133 S.Ct. 735, 184 L.Ed.2d 604 (2013). In Lozman, the Supreme Court reversed the Eleventh Circuit's holding that a floating home constituted a vessel, stating that "a structure does not fall within the scope of this statutory phrase unless a reasonable observer, looking to the [structure]'s physical characteristics and activities, would consider it designed to a practical degree for carrying people or things over water." Id. at 741. Defendants argue that the Lozman decision is inapplicable here given the clear precedent of the Fifth Circuit, since the Supreme Court stated that its decision would assist courts in "borderline cases where `capacity' to transport over water is in doubt." Id. at 745. In any event, the Court finds that the holding of Lozman supports its conclusion that the ATP TITAN is not a vessel.
In holding that the floating home did not qualify as a vessel, the Court emphasized that a vessel must be practically, not just theoretically, capable of carrying people or things over water. Id. at 741. In considering the characteristics of the floating home, the Court stated:
Id. at 741 (citations omitted).
The ATP TITAN has not moved locations since it was fully installed in March 2010, and its eventual relocation will require a massive expenditure of money and manpower.
Further, the Lozman decision reflects the Supreme Court's rejection of the "anything that floats" approach in an effort to cabin the definition of a vessel. See Mooney v. W & T Offshore, No. 12-969, 2013 WL 828308, at *4 (E.D.La. March 6, 2013) (quoting Fireman's Fund Ins. Co. v. Great. Am. Ins. Co. of N.Y., No. 10-1653, 2013 WL 311084, at *3 (S.D.N.Y. Jan. 25, 2013)("Lozman sent a shot across the bow' of those lower courts whose opinions [could] be read as endorsing the anything floats approach to determining vessel status.")). For this reason, the Court finds it to be unlikely that the Supreme Court's opinion would have the effect of invalidating Fifth Circuit precedent establishing that floating production platforms are not vessels. The Fifth Circuit opinion that the Supreme Court criticized as endorsing an inappropriate approach is Holmes v. Atlantic Sounding Company, 437 F.3d 441 (5th Cir.2006), in which the Fifth Circuit held that a barge that housed workers was a vessel. 133 S.Ct. at 743. Moreover, after issuing its decision in Lozman, the Supreme Court denied certiorari to the appellant in Mendez v. Anadarko Petroleum Corporation, discussed supra, who sought to overturn the Fifth Circuit's determination that the Red Hawk was not a vessel. ___ U.S. ___, 133 S.Ct. 979, 184 L.Ed.2d 760 (2013). The denial of the writ does not establish the Supreme Court's endorsement of the holding in Mendez. Nevertheless, it is worth noting since the Supreme Court, that same day, cited Lozman in vacating a judgment concerning the vessel status of a casino boat. ___ U.S. ___, 133 S.Ct. 979, 184 L.Ed.2d 760 (2013) (remanding Lemelle v. St. Charles Gaming Company, Inc., 118 So.3d 1, No. 11-255, 2012 WL 130351 (La.Ct.App. Jan. 4, 2012) (holding that riverboat casino was not a vessel)). The Court therefore finds that the Supreme Court has given no indication that its decision in Lozman disturbed Fifth Circuit precedent and analysis concerning floating platforms.
Another court in the Eastern District of Louisiana reached a similar conclusion in Mooney v. W & T Offshore Inc., 2013 WL 828308, at *3-5. The court cited Stewart, Lozman, and Mendez in holding that the Matterhorn Seastar does not qualify as a vessel. Id. at *5. The Matterhorn Seastar is a production platform that has been secured in the same position on the Outer Continental Shelf for ten years. Id. Like the ATP TITAN, it is securely attached to the seafloor and is not intended to be moved, except for its positioning within the block on the Outer Continental Shelf and at the end of the life of the reservoirs it serves. The court held that its capacity to "be used in maritime transportation is nothing more than a `theoretical possibility.'" Id. at *6. In analyzing the status of the Mattherhorn Seastar using the criteria set forth in Lozman, the court noted that its conclusion was supported by the holding of Mendez and other district court cases within the Fifth Circuit. Id.
In fact, rather than casting doubt on the ATP TITAN's non-vessel status, Lozman and its emphasis on the impressions of a reasonable observer reinforce the Court's determination that the ATP TITAN is not a vessel.
The Court thus finds that the ATP TITAN does not qualify as a vessel. Accordingly, plaintiffs have not met their burden in demonstrating that the Court may exercise in rem admiralty jurisdiction over the ATP TITAN. See Lozman, 133 S.Ct. at 745. ("A court's jurisdiction, e.g., admiralty jurisdiction, may turn on application of the term `vessel.'"). The Maritime Lien Act, under which a civil action may be brought against a vessel is "premised on the fiction that the vessel is a distinct entity that is statutorily liable for its own debts." Maritrend, Inc. v. M/V SEBES, No. 96-3140, 1997 WL 660614, at *2 (E.D.La. Oct. 23, 1997). Because plaintiffs point to no other law that would allow the Court to exercise jurisdiction over the ATP TITAN as a defendant, the Court finds that the ATP TITAN must be dismissed from the case.
When a defendant attacks the complaint because it fails to state a legally cognizable claim, Rule 12(b)(6) provides the appropriate challenge. To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must plead enough facts "to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1960, 173 L.Ed.2d 868 (2009)(quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). A claim is facially plausible when the plaintiff pleads facts that allow the court to "draw the reasonable inference that the defendant is liable for the misconduct alleged." Id. at 1949. A court must accept all well-pleaded facts as true and must draw all reasonable inferences in favor of the plaintiff. Lormand v. U.S. Unwired, Inc., 565 F.3d 228, 239 (5th Cir.2009); Baker v. Putnal, 75 F.3d 190, 196 (5th Cir.1996). But the Court is not bound to accept as true legal conclusions couched as factual allegations. Iqbal, 129 S.Ct. at 1949.
Defendant ATP Titan, LLC does not argue that it is not subject to the Court's jurisdiction. Rather, it asserts that plaintiffs have failed to state a claim on which relief may be granted. Plaintiffs seek a declaratory judgment that the ATP TITAN is a vessel and that they have valid
For the foregoing reasons, the Court GRANTS defendants' motion to dismiss both defendants. Because the Court has found that it cannot exercise in rem jurisdiction over the ATP TITAN, plaintiffs' motions to deem in rem jurisdiction perfected and to issue an arrest warrant are moot.