They Say Nothing Lasts Forever, but What If Decommissioning Does?
June 10, 2019 —
Stella Pulman - Gravel2Gavel Construction & Real Estate Law BlogThe looming decommissioning liabilities of offshore energy producers have been a focus of the federal government in recent years. One recent case out of the U.S. Court of Federal Claims, Taylor Energy v. United States, highlights the tension between the federal government’s desire to maintain financial security for decommissioning activities, and that of an operator whose security is tied up indefinitely while the government awaits technological advances to allow for safe decommissioning.
The case relates to a trust agreement between Taylor Energy and the United States, established to secure Taylor’s decommissioning liabilities for 28 wells in the Gulf of Mexico. Taylor completed certain decommissioning work for which it was reimbursed by the trust. However, with over $400 million remaining in the trust, Taylor and the Bureau of Safety and Environmental Enforcement (BSEE) concluded that the ecological benefits of further decommissioning would be outweighed by the ecological risks. But despite recognizing that the limitations of current technology made the environmental impacts of further decommissioning work unjustifiable, the BSEE declined to release Taylor from its decommissioning obligations and instead decided to await “changes in technology and a better understanding of the undersea environment.” Because Taylor’s decommissioning obligations remained in place, the U.S. refused to release the remaining funds in the trust.
Taylor claimed that the United States should release the remaining funds in the trust because “decommissioning the remaining wells is not ‘currently technologically feasible.’” Taylor asserted that Louisiana law applied to the trust agreement, and that under Louisiana law every contract must be completed within an ascertainable term. By holding the trust funds until decommissioning was complete, Taylor argued that the government was essentially holding the funds in perpetuity given the technological infeasibility of completing decommissioning. Taylor also asserted that the agreement was premised on an impossibility (the full decommissioning of the wells), and/or a mutual mistake of the parties (that the wells could be decommissioned).
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Stella Pulman, PillsburyMs. Pulman may be contacted at
stella.pulman@pillsburylaw.com
Thank You for Seven Years of Election to Super Lawyers
May 01, 2023 —
Christopher G. Hill - Construction Law MusingsIt is with humility and a sense of accomplishment that I announce that I have been selected for the seventh straight year to the
Virginia Super Lawyers in the Construction Litigation category for 2023. Add this to my recent election to the
Virginia Legal Elite in Construction and I’ve had a pretty good year. As always, I am thrilled to be included on these peer-elected lists.
So without further ado, thank you to my peers and those on the panel at Virginia Super Lawyers for the great honor. I feel quite proud to be part of the
5% of Virginia attorneys that made this list for 2023.
The full lists of Virginia Super Lawyers will appear in the May edition of Richmond Magazine. Please check it out.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Las Vegas Sphere Lawsuits Roll On in Nevada Courtrooms
October 02, 2023 —
Richard Korman - Engineering News-RecordBig concerts have yet to start at Las Vegas’ distinctive new ball-shaped entertainment venue, but the legal noise over its construction has been heard in Clark County courtrooms for more than two years.
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Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Construction Contract Basics: Attorney Fee Provisions
November 13, 2023 —
Christopher G. Hill - Construction Law MusingsI have discussed the need for
attorney fee provisions in your construction contracts in prior posts here at Construction Law Musings, but thought it merited a restatement of the reasons for the inclusion of such fee provisions (and changing of such provisions when presented) here with the second of my
construction contract basics posts.
Why would you want such a provision? The answer is that without it, or a statute specifically allowing for such fees, a Virginia court will not award your attorney fees without such a provision. Virginia, and a lot of other states, follow the so-called “American Rule” when it comes to attorney fees and costs. In short, that rule states that the parties to litigation pay their own way unless they agree otherwise. While it may seem unfair to make a successful litigant pay for the privilege of being right, that is the rule in Virginia. Throw in the fact that Virginia courts
strictly construe construction contracts and voila we have a situation where without a provision in the contract stating that one party or both will be able to collect attorney fees should that contractor or subcontractor prevail, a construction professional that gets sued (whether rightly or wrongly) will be left with a hefty attorney fees bill and no way to recoup those fees through the courts or any other method.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Decades of WCC Seminar at the Disneyland Resort
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFOne of the many perks of attending the West Coast Casualty Construction Defect Seminar each year is its location at the Disneyland Hotel. What better excuse to take an afternoon or day or two to visit the happiest place on Earth? Prior to 2001, attendees only had the Disneyland Park to explore. But the beginning of 2001 brought the addition of the California Adventure Theme Park and Downtown Disney. Now when you want a break you can take a stroll through Downtown Disney and shop, eat, or watch some street performers. While California Adventure still has plenty for children to do, it also caters to the twenty-one-and-over-but-still-child-at heart with wine tasting and craft beers available at the park. Disneyland remains a fixture for nostalgia with the Sleeping Beauty Castle, but has updated itself with its addition of Star Wars and Marvel attractions.
West Coast Casualty has special Disneyland ticket rates for attendees. Please see their
invitation for more details.
If you’re interested in one of Disneyland Resort’s sit-down restaurants, a reservation is highly desirable. You may
make your reservation online or call Disney Dining at (714) 781-DINE. Staying at the Disneyland Resort? Disney provides their hotel guests with preferred access reservations (call Disney Dining for more information). If you’re looking for a fine dining experience, you’ll enjoy Carthay Circle Restaurant at California Adventure, Catal Restaurant at Downtown Disney, Napa Rose at the Grand Californian Hotel, or Steakhouse 55 at the Disneyland Hotel. If you’re a sports fan, check out ESPN Zone in Downtown Disney. For a one-of-a-kind Disney experience, have lunch or dinner at the Blue Bayou at Disneyland, where the dining room is located within the Pirates of the Caribbean ride.
You may also want to check Disneyland Resort’s
Entertainment schedule. For a live musical show (included in the cost of admission to California Adventure Park), check out Frozen – Live at the Hyperion. For an illuminating experience, you’ll want to stay for the Paint the Night Parade at the California Adventure Park, which features one million brilliant lights and many of your favorite Disney characters. If you’re a Pixar lover, you won’t want to miss Disneyland Park’s Together Forever – A Pixar Nighttime Spectacular. It’s a fireworks display like only Disney can create, including dazzling projections, pyrotechnics and music from the movies.
If you wish to skip the crowds and just relax, then
the Madara Spa at Disney’s Grand Californian Hotel may be your choice. The Madara Spa theme is “the mystery of the East meeting the science of the West with boundaries ceasing to exist.”
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New York Public Library’s “Most Comprehensive Renovation” In Its History
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFManhattan’s New York Public Library’s renovation plans have been revised after being “the subject of at least three lawsuits and repeated protests by academics, activists, writers and historians,” according to Construction Digital. The previous $300 million plan by Foster & Partners would have required the circulation collections to be relocated during the renovation process. Now, that plan has been abandoned for one that New York Public Library President Anthony Marx calls “the most comprehensive renovation in its history.”
“Instead of removing the central stacks and placing the Mid-Manhattan Library in that space, we are proposing to renovate Mid-Manhattan Library at its current site,” Marx told Construction Digital. “This renovation will add much-needed computer labs and an adult education center, and an inspiring, comfortable space for browsing our largest circulating collection.”
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Balfour Taps Qinetiq’s Quinn as new CEO to Revamp Builder
October 15, 2014 —
Benjamin Katz and Simon Thiel – BloombergBalfour Beatty Plc (BBY) named Leo Quinn as new chief executive officer to revamp Britain’s biggest builder which has suffered from mismanaged projects and a lack of demand.
Quinn will start on Jan. 1 after five years as CEO of defense specialist Qinetiq Group Plc, Balfour Beatty said today. The executive began his career at Balfour Beatty in 1979 as a civil engineer and later worked as president of Honeywell Building Controls and CEO of banknote printer De La Rue Plc. The stock gained 5.3 percent in London trading today.
Balfour Beatty, which rejected a merger proposal from British rival Carillion Plc in August, has struggled since the global recession slashed orders and prices. Its stock had fallen 48 percent this year before today, reducing the company’s value to 1 billion pounds ($1.6 billion). In September, Balfour Beatty cut its U.K. construction-services unit’s profit forecast and said Chairman Steve Marshall plans to leave.
Mr. Thiel may be contacted at sthiel1@bloomberg.net; Mr. Katz may be contacted at bkatz38@bloomberg.net
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Benjamin Katz and Simon Thiel, Bloomberg
Jury Awards 20 Million Verdict Against Bishop Abbey Homes
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFA Rockwall County, Texas “jury has awarded a $20.8 million verdict against a Dallas homebuilder for performing substandard work on a local family's home and refusing to accept responsibility,” according to a press release published in The Wall Street Journal.
The lawsuit alleged that “the defendants were aware that the site of the Hales' future Highpoint Lake Estates home had significant foundation defects before construction began. The Hales said Mr. Halsey later promised that his company would take responsibility by fixing the structural defects that arose after construction, but he reneged and refused to repair the problems.”
The award included “damages for the cost of repairs, lost value and additional penalties based on Mr. Halsey's actions and the defendants' ‘grossly negligent’ conduct, including violations of the Texas Deceptive Trade Practices Act. The jury award includes attorneys' fees for the Hales' legal team.”
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