Enterprise Products Partners Wins Court Appeal



Enterprise Products Partners Wins Court Appeal
The lawsuit is over a proposed pipeline project that was cancelled due to a lack of customer support.

Enterprise Products Partners LP has won in its appeal against Energy Transfer Partners in the Supreme Court of Texas. The appeal stems from a 2014 Dallas jury verdict against Enterprise in a lawsuit filed by Energy Transfer over a proposed pipeline project that was cancelled due to a lack of customer support.

A panel of the Dallas Court of Appeals reversed the trial court’s judgment for all ETP’s claims against Enterprise, and the Supreme Court of Texas unanimously supported the ruling.

In April of 2011, Enterprise and Energy Transfer signed agreements disclaiming any partnership or joint venture without documents and board approvals of the two companies. Definitive agreements were never executed, and board approval was never obtained. The parties signed these disclaiming agreements precisely to avoid this type of lawsuit, Enterprise said in a written statement.

“We are grateful for the hard work of the Supreme Court of Texas and the Dallas Court of Appeals, which correctly reaffirmed the importance of written contracts,” said Enterprise appellate lawyer David E. Keltner. “This case needed decisive action because it had the potential to stand as one of the worst for business in Texas since the Texaco v. Pennzoil decision from the 1980s. Sophisticated parties need the right to rely on written contracts.”

Enterprise Products Partners is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Its services include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and export and import terminals; crude oil gathering, transportation, storage and export and import terminals; petrochemical and refined products transportation, storage, export and import terminals and related services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems.

Its assets are comprised of 50,000 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 Bcf of natural gas storage capacity.

To contact the author, email bertie.taylor@rigzone.com.



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