A high-stakes legal battle involving alleged negligence in oil and gas drilling operations has culminated in a decisive court ruling. Gulf Production Company, Inc. filed a complaint against Halliburton Energy Services, Inc. and Robert Peatross on March 13, 2023, in the 22nd Judicial District Court for the Parish of St. Tammany, Louisiana.
The case centers around an operating agreement Gulf Production entered into with Gulf Explorer, LLC in November 2010 for drilling operations on the Horseshoe Bayou Prospect in Plaquemines Parish, Louisiana. Gulf Production was instructed to drill two wells by Gulf Explorer. After successfully drilling the ExxonMobil Fee No. 2 well in May 2011, they proceeded to drill the ExxonMobil Fee No. 3 well. During this operation, a coring gun provided by Halliburton allegedly became stuck in the well, causing significant delays and additional costs.
Gulf Production subsequently sued Halliburton and its account representative Robert Peatross in June 2013, alleging that Halliburton's negligence led to substantial financial losses including loss of time, expenses, and profits. The lawsuit claimed that Halliburton failed to provide proper expertise and equipment for coring services as contracted.
Halliburton responded with a reconventional demand seeking payment for services rendered and supplies provided during the ExxonMobil Fee No. 3 well project. Over nine years of extensive discovery and numerous court proceedings followed.
In September 2022, a pivotal moment occurred when the trial court ordered Gulf Production to produce evidence related to their ownership percentage of mineral rights after hearing arguments on Halliburton’s motion in limine. In response, Gulf Production disclosed an assignment from April 25, 2013, where Gulf Explorer delegated authority to them to sue Halliburton for damages caused to the ExxonMobil Fee No. 3 ST Well.
However, this disclosure came too late as it was not initially pleaded in their petition. Consequently, Halliburton filed a peremptory exception of no right of action and a motion for partial summary judgment arguing that Gulf Production had no standing since they did not allege assignment nor suffer direct damages themselves.
On February 2023, after reviewing documentary evidence including affidavits from key executives of both companies and hearing arguments from both sides' counsel, the trial court sustained Halliburton’s exception of no right of action and granted their motion for partial summary judgment dismissing all claims by Gulf Production with prejudice.
Gulf Production appealed but did not contest the summary judgment portion; instead focusing on challenging the exception ruling and seeking leave to amend their petition which was denied by the trial court citing undue delay tactics over ten years causing unfair prejudice against defendants.
The appellate court affirmed this decision stating that allowing amendment would be futile as it sought fundamentally new claims rather than clarifications or amplifications permissible under procedural rules.
The case was presided over by Honorable Vincent J Lobello under Case ID: Trial Court Docket Number 2013-12663 Div F