Dallas-based Energy Transfer Partners, L.P. is having a rough week.
OK Energy Today reported on Monday that the pipeline company’s expedited plans for Ohio’s Rover Pipeline have been met with federal and state regulatory orders halting further construction until the company has completed a large-scale remediation project due to numerous spill violations.
A three-judge panel from the Court of Appeals for the Fifth District in Dallas also delivered a stunning blow to the company by unanimously voting to overturn Energy Transfer’s landmark $535 million verdict against Houston-based Enterprise Products Partners L.P.
The case stems from a 2011 agreement calling for both parties to work on a pipeline project transporting crude oil from Cushing, Oklahoma to Texas Gulf Coast refineries. Citing lack of customer support, Enterprise Products stated that it signed a nonbinding letter of intent with Energy Transfer without finalizing the details in a formal, signed agreement. Ultimately, Enterprise Products subsequently signed an agreement with Enbridge Inc. valued at nearly $2 billion.
The pipeline company led by CEO Kelcy Warren sued Enterprise Products in 2012 alleging the existence of a business partnership and won the first round in 2014 when a jury awarded a whopping verdict in favor of Energy Transfer.
In a 20-page opinion, Justice Lana Myers said Energy Transfer did not meet its burden of proof to bring the initial cause of action.
It is widely anticipated that Energy Transfer will appeal the decision to the Texas Supreme Court.