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Gas Operator Can’t Duck Costs of Abandoning Pipeline System

July 31, 2020, 10:19 PM

Total E&P USA Inc. is partially liable for the costs of abandoning an offshore oil and gas development in the Gulf of Mexico, but royalty interest should be subtracted from damages owed, the Fifth Circuit ruled Friday.

Total served as the original operator of a pipeline structure called Canyon Express Pipeline System and a connected oil and gas field known as MC 305. The company later assigned its interests to ATP Oil & Gas Corp.

ATP, Marubeni Oil & Gas USA Inc., and one other company co-owned all interests in the two entities until ATP and the third company went...

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