Ninth Court won’t rehear Denbury common carrier case

Only two days after Denbury Green Pipeline-Texas asked for a rehearing of a ruling denying it common carrier status, the Texas Ninth Court of appeals overruled the request.

Last month, justices reversed a Beaumont judge’s ruling recognizing Denbury Green Pipeline-Texas as a common carrier.

Denbury filed a motion for rehearing on March 16, believing the opinion “will have widespread impact throughout the pipeline industry.”

The company asked justices to “reconsider the standards it applies to the common carrier determination and the uncontroverted evidence that demonstrates Denbury Green’s common carrier status under the Supreme Court’s new Texas Rice test.”

Court records show that on March 18 the appeals court overruled the motion, leaving Denbury with option to let the ruling stand or appeal to the Texas Supreme Court.

The case stems from litigation centered around James E. Holland and David C. Holland, their business Texas Rice Land Partners and their tenant Mike Latta, who allege Denbury sought to use the power of eminent domain to take their land for construction of a pipeline.

At issue has been whether Denbury plans to use the pipeline primarily for its own means or if the pipeline would be a common carrier for other companies and public.

In their motion for rehearing, Denbury argued the Ninth Court measures common carrier status at the wrong point in time, maintaining the degree of public use is not an issue so long as there is some public use.

In the Ninth Court’s Feb. 12 opinion, justices found a question remains on whether the pipeline would serve the public, reversing a lower court’s ruling and remanding the case for further proceedings.

Denbury is represented in part by Marie Yeates of Vincent & Elkins LLP in Houston.

TRLP is represented in part by attorney William Christian.

Appeals case No. 09-14-00176-CV

Trial case No. E181-923