Cutting Underwater Technologies USA, Inc. v. Eni U.S. Operating Co.
671 F.3d 512 | Court of Appeals for the Fifth Circuit | 2012
What This Case Means for Subcontractors
Cutting Underwater Technologies sued Eni for payment on work removing an offshore oil production platform after the well was depleted. The Fifth Circuit Court of Appeals upheld a ruling that this removal work qualifies as an 'operation' under Louisiana's Oil Well Lien Act. This decision means subcontractors who perform decommissioning and removal work on oil platforms can file liens against the operator's property to secure payment, just like they can for drilling and production work.
Key Takeaways
- •Platform removal and decommissioning work is protected by Louisiana's Oil Well Lien Act—you can file a lien if the operator doesn't pay
- •The lien right applies even after a well stops producing, as long as the work is part of well operations
- •Document all work performed on platform removal projects carefully to support a lien claim if payment disputes arise
Work done to remove a platform following well depletion properly falls within the statutory term 'operations.'
Frequently Asked Question
Can I file a lien if I remove an oil platform after the well stops producing?
Yes, under Louisiana law. The Fifth Circuit ruled that platform removal following well depletion counts as an 'operation' under the Oil Well Lien Act. This means you have lien rights against the operator's property for unpaid removal work, just as you would for drilling or production work.
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