Court Opinion

ID: 4034784
Source: CourtListenerOpinion
Date Created: 2016-09-19 09:07:40.293652+00
Date Added: 2024-06-11T14:04:01.006527
License: Public Domain

ACCEPTED
                                                                                  03-15-00728-CV
                                                                                        12671279
                                                                       THIRD COURT OF APPEALS
                                                                                  AUSTIN, TEXAS
                                                                             9/13/2016 1:41:56 PM
                                                                                JEFFREY D. KYLE
                                                                                           CLERK
                            No. 03-15-00728-CV

                                                                 FILED IN
                     IN THE THIRD COURT OF APPEALS        3rd COURT OF APPEALS
                                                              AUSTIN, TEXAS
                              AUSTIN, TEXAS
                                                          9/13/2016 1:41:56 PM
                                                            JEFFREY D. KYLE
                                                                  Clerk
              WESTLAKE ETHYLENE PIPELINE CORPORATION,
                                Appellant,

                                    v.

                  RAILROAD COMMISSION OF TEXAS AND
                     EASTMAN CHEMICAL COMPANY,
                                Appellees.

               On Appeal from the 98th Judicial District Court
            Travis County, Texas, Cause No. D-l-GN-15-001009

       EASTMAN CHEMICAL COMPANY'S ORAL ARGUMENT EXHIBITS

James E. Mann                        Wallace B. Jefferson
State Bar No.12926100                State Bar No. 00000019
jmann@dwmrlaw.com                    wjefferson@adjtlaw.com
Mamie McCormick                      Dana Livingston
Leslie Padilla                       J. Woodfin Jones
DUGGINS WREN MANN &                  ALEXANDER DUBOSE JEFFERSON &
ROMERO, LLP                          TOWNSEND LLP
600 Congress, Suite 1900             515 Congress Avenue, Suite 2350
Austin, Texas 78701                  Austin, Texas 78701-3562
Telephone: (512) 744-9300            Telephone: (512) 482-9300
Facsimile: (512) 744-9399            Facsimile: (512) 482-9303
EXHIBIT A
                                               APPLICATION FOR PERMIT TO OPERATE A PIPELINE IN TEXAS                                                                               FORMT-4
                                                                                      (See 16 TAC 3.70)                                                                                  (8106)
Railroad Commission ofTcxa.s
Gas Services Division
License & PennilS Seclion                                                                                                                                         Pcnni1No.        05253

  I. Operator (Applicant)(See Instruction I)                                                       Address
  Mustang Pipeline Company                                                                           PO Box 7444 LonQvlew, Texas 75607
                                                                PS#          597145
 2. Does the above named operator own pipeline?                     Oves                     [!]No lf'No', give name and address of owner.
  Westlake Eth lene Pipeline Corporation, 2801 Post Oak Blvd., Houston, Tx 77056
  J, Does lhe above named operator conduct or control !he cconomil: operations on the pipeline?
    lf'No', give name, address and P· '# of oconomic operator. (See lnsll\IC!ion 2)

  I. Mark appropri11e block for wh of the following ques1ions:
     a) Arc lhe pipelines covered wider this pcnmit         [J1n1en11to [!Jlntrastotc
     b) Fluid ~~d :
              LJCrudc           [!]condcnsaic        Cloas (•) Droc1ucu (") 0Full Oas Well Stream                                        0Full Oil Well Stream                Oolher(")
                                                                 •Specify _ _ _ _ _ _ _ _ _ __
        c) Docs fluid conlDin H1S?       Dves             [!]No          If yes, Ill whal concentration? _ _ _ _ _ ppm
        d) Pipeline class1fic111ion:
              If answer lo (b) is olher than natural gM, will the pipeline be operated as c::::Jacommon canieror asO privale line?
                                                                                                                          \Ch. 111, Texas Netural Resources Code)
              If answer to (b) is natural gu, will the pipeline be operated as a       .Qsasutility or as a Wrivale line?
                                                                                                                          (Tew Utilities Code)
              NOTE.: A lllltW'tl/ gas piptlinr fHm1il will no/ sp1cify whtthrr lh• pipt/in• is a gas utiliry or a pri1·a11 /in" The Oas Srrviru Divu1on
              Gas Utrliry Audit Section will ma/<4 thal dmrminalion arrd no1f/y rh1 optraror of its sta/IU.
        e)       pipeline use any public highway or road, railroad, public utility, or other common ca.mer right-of·way?                      Elves
        f) Will the pipeline c;ury only 1he gas and/or li11u1ds produced by pipeline owner or 1>pm1or?                                        Ovu
               IL!!lswcr to (f) is "No'. is the gas andloJ;.!.is.utds:
               LJPuroh .. od from olhera.                 L!.JOwntd by olh111, bul lransponed for • roe.                    c:lBolh purchased and tmnsported for olhc ...
  2. a.) New insull1t1on?                     0Ycs           [!JNo                                        NcwConstructionReportNumber _ _ _ _ _ _ _ _ __
     b) Rel\Cwal for 581T1• openuor'?    [!Ives 0No                                                                        (seo 16 TAC 8.llS re. applicability)
     c) Extcnsionormodlfic1111on?        [!Jvcs D o
     lflhere has been a change in operator or ownmhip, give name and address of previous opcnitor, owner, or lessor (Anach ronn T4B)
   Previous owner; Mustang Pipeline Company, PO Box 7444 Longview, Tx .• 75607 (Form T4B forthcoming by new Owner)
  3 Check deLailed pwposc{s) for which describe§ipeline Wiii be 145ed:

               §Transmission
                    01theling
                    01s lnje1:tion
                                                  Terminal (Slorage Field)

 4. US.G.S. 7.S MinUle Quad aaachcd? (Scale 1• ~ 2,000 feet)
                                                             Gu Lift
                                                             Gas Plant
                                                                                                          §      lndll.1tlial Distribuiion                   RECEIVED
                                                                                                                 Manufacturing Feed Steck (Own Conswfi!ScC. OF TEXAS
                                                                                                                 Other (••plain) Transport lPGs and Initial uaa Is B1hyfene

        Overview msp (24" x 24" 11 " = 20 miles or less) aiwhtd and digilal dala sent?

I declare, under penalties prescribed in Sec:. 91 .143, Texa.s Natwal Rcsoun:es Code, that I am authorized to make this report, that'1irl~ ~ prepared
by me or under my supervision and dircl:lion, and that data and facts stated therein arc tnac, com:ct, and complete, 10 the best of my knowledge.

 Mr. James Ray
(Type or Prinl Name of Person)

 President, Mustang Pipeline Company
(Tille)
lnqu111cs regardins lh1s apphcat1on should be d110.:~ to:
N•mc:        Curtis G. Brown                          Adder .. ·   PO Box 74441 Longview, Tx. 75607                                          Phone (A/C)     (903) 237•6606
Fax (   (903)     2~7·5743                                                        E-mail   cgbrown@eastman.com
The RaiboaO Canmissial does not dbcnn'llllll8 on Illa bmis of race, COier, national Ollgin, au, religion, age, or 208 S.W. 3rd 608 (Tex. - Austin 2006, pet.
       dism'd)                                        ·

       Westlake Pipeline, as a common carrier, is required to receive and transport ethylene
       delivered to it for transportation and perform its other related duties without
       di scrimination as required by T EX NAT. RES. CODE A NN. § 111.015.

8.     Westlake Pipeline, as a common carrier, shall not discriminate between or against
       shippers with regard to facilities furnished, services rendered, or rates charged under the
       same or similar circumstance in the transportation of ethylene as required by TEX. NAT..
       RES. CODEANN. § 111.015 .

9.     Westlake Pipeline, as a common carrier, may not charge, demand, collect, or receive
       either directly or indirectly from anyone a greater or lesser compensation for a service
       rendered than from another for a like and contemporaneous service.

l 0.   Westlake Pipeline' s 2013 tariff terminated pre-existing backhaul and exchange services
       and. provided an unreasonable preference and advantage to its affiliate, Westlake
       Longview.

11.    The Commission has the authority to require that tariffs published by a common carrier
       and tiled with the Commission are not discriminatory.

12.    Tariffs that provide disparate treatment to similarly-situated shippers or provide an
       unreasonable preference or advantage to an affiliate at the expense of other shippers are
       discriminatory.

13 .   There is no general duty for a common carrier to provide backhaul and exchange
       services . Neither is there a general duty to maintain services previously offered by a
       common carrier. It is discriminatory, however, for a common carrier to cancel previously
       existing services and cut off access to a market so that all other shippers on the pipeline
       are forced to sell or exchange their product with a shipper on that same pipeline which is
       affiliated with the pipeline.

IT IS THEREFORE ORDERED that the 2013 Westlake Pipeline Tariff is rejected and may not
be enforced by Westlake Pipeline.
GlJD Docket No. l 0296                  Final Order                                      Page 9of9

IT IS FURTHER ORDERED that Westlake Pipeline publish and file with the Commission a
revised tariff that is not discriminatory and confonns to the tariff attached to this Final Order as
Exhibit A.

IT IS FURTHER ORDERED that, in accordance with TEX. NAT. RESOURCE CODE ANN.
§ 111.015, within 30 days of the date this Order is signed, Westlake Pipeline shall file the
approved tariff with the Director of the Oil and Gas Division. The tariffs shall reflect the
findings of fact and conclusions of law herein.

IT IS FURTHER ORDERED that all proposed findings of fact and conclusions of law not
specifically adopted in this Order are hereby DENIED. ·

IT IS ALSO ORDERED that all pending motions and requests for relief not previously granted
or granted herein are hereby DENIED.

This Order will not be final and effective until 20 days after a party is notified of the
Commission's order. A party is presumed to have been notified of the Commission's order three
days after the date on which the notice is actually mailed. If a timely motion for rehearing is
filed by any party at interest, this order shall not become final and effective until such motion is
overruled, or if such motion is granted, this order shall be subject to further action by the
Commission. Pursuant to TEX. Gov'T CODE ANN. § 2001.146(e), the time allotted for
Commission action on a motion for rehearing in this case prior to its being overruled by
operation of law, is hereby extended until 90 days from the date the order is served on the
parties.
                        .i-h.
       SIGNED thisL day of December 2014.

                                              RAILROAD COMMISSION OF TEXAS

                                              CHAIRMAN CHRISTI CRADDICK

                                                                                    ER

                                               COMMISSIONER BARRY T. SMITHERMAN
                             CERTIFICATE OF SERVICE
      On September 13, 2016, I electronically filed the oral argument exhibits with

the Clerk of the Court using the eFile.TXCourts.gov electronic filing system which

will send notification of such filing to the following.

Lindsay Hagans                              Prerak Shah
State Bar No. 24087651                      State Bar No. 24075053
lindsay.hagans@bracewelllaw.com             prerak.shah@texasattorneygeneral.gov
BRACEWELL LLP                               Lisa Bennett
711 Louisiana Street, Suite 2300            State Bar No. 24073910
Houston, Texas 77002                        lisa.bennett@texasattorneygeneral.gov
Telephone: (713) 223-2300                   OFFICE OF THE ATTORNEY GENERAL
Facsimile: (800) 404 3970                   P.O. Box 12548
                                            Austin, Texas 78711-2548
                                            Telephone (512) 936-2923
                                            Facsimile: (512) 474-2697

                                            Counsel for Appellee
                                            Texas Railroad Commission

Dale Wainwright
State Bar No. 00000049
dale.wainwright@bracewelllaw.com
BRACEWELL LLP
111 Congress Avenue, Suite 2300
Austin, Texas 78701
Telephone: (512) 472-7800
Facsimile: (800) 404-3970

Counsel for Appellant
Westlake Ethylene Pipeline Corp.

                                               /s/ Dana Livingston
                                               Dana Livingston