Dallas-based Energy Transfer Partners filed the lawsuit against Houston-based Enterprise Products Partners and Enbridge Inc. of Calgary, Alberta. Energy Transfer Partners claims that a business partnership had been created between itself and Enterprise to jointly construct a pipeline from Cushing, Oklahoma to Houston, but that Enterprise conspired with Enbridge to cut Energy Transfer out of the deal.

In a motion to dismiss the case, Enterprise and Enbridge claimed that no partnership or joint venture was actually created between Energy Transfer and Enterprise. The motion to dismiss was denied by Dallas County District Judge Emily Toblowsky, and jury selection has now begun.

The case is noteworthy because it involves important business litigation issues and pits prominent Texas trial attorneys against one other. The case is also expected to reveal information about the business strategies of three large, fast-growing oil companies. Testimony from executives of all three companies is expected to be given.

Energy Transfer Partners, which has approximately $50 billion in gas and oil assets, claims that Dan Duncan, the chairman and majority owner of Enterprise, approached Energy Transfer Partners about forming a joint venture before his death in 2010. Enterprise, which has about $38 billion in assets, signed a nonbinding agreement with Energy Transfer Partners in spring 2011.

Energy Transfer Partners claims that over the following few months, the two companies jointly made operational decisions, met with potential customers and marketed the partnership, calling the venture Double E Pipeline and even signing a deal with Chesapeake Energy in August 2011 to ship oil on the installation.

However, Enterprise announced that it was terminating the business relationship less than a month later. Allegedly, the company then started a similar venture with Enbridge, which has annual revenue of about $11 billion and assets of approximately $30 billion.

Energy Transfer Partners claims that Enterprise and Enbridge conspired to end the existing partnership and is suing for $1.2 billion in damages. Enterprise claims that no partnership had been finalized, pointing to language in an April 2011 letter that states that no obligations would exist between the two companies until the parties received approval from their respective boards. Energy Transfer Partners argues that Texas law has a liberal definition for the existence of a business partnership, even sometimes finding a partnership in cases in which the parties claim there is none.

Gregory D. Jordan is an Oil and Gas lawyer in Austin. To learn more, visit http://www.theaustintriallawyer.com or call 512-419-0684.

The explosion happened in Washington Parish on a pipeline owned by Florida Gas Transmission (FGT) that carries gas from Texas to Florida. It created a mushroom cloud in the air and ignited a fire. No injuries were reported.

Gas pipeline explosions seem to be occurring at an accelerating rate in the United States. This is not surprising considering the advanced age of most of the infrastructure. Most older pipelines are made of wrought or cast iron. The modern standard is steel pipeline that has been specially treated to protect it from corrosion. The National Transportation Safety Board in 1973 recommended the replacement of all iron pipelines, but without government mandates, there is not enough incentive for gas companies to accelerate the expensive replacement process.

Energy Transfer Partners, a parent company of FGT, said that a section of the pipeline was shut down and gas was rerouted to customers. On its website, FGT said that it was capping gas usage for customers on the line due to increased demand. Some 10,000 Louisianans who get their electricity from the Washington-Street Tammany Electric Cooperative were affected as well. They were without power temporarily, but a representative said that service had been restored.

The Lietz Law Firm advocates for improved safety standards across all transportation industries in the U.S., including gas and oil transport. The replacement of the nation’s aging pipeline infrastructure needs to be a priority, and we hope officials and business leaders will not wait for another tragedy before committing to the undertaking.

We Focus our Practice Exclusively on Wrongful Death and Critical Injury Cases – Contact a personal injury lawyer at The Lietz Law Firm by calling 866-554-1238 or learn more by visiting http://www.lietzlaw.com/.