MOBILE EXPLORATION v. CERTAIN UNDERWRITERS

No. 2001 CA 2219.

837 So.2d 11 (2002)

MOBIL EXPLORATION & PRODUCING U.S. INC., Mobil Producing Texas & New Mexico Inc., Mobil Oil Exploration & Producing Southeast Inc., Mobil Exploration and Producing North America Inc., St. Mary Land & Exploration Company, St. Mary Operating Company and Samuel Gary Jr. & Associates, Inc. v. CERTAIN UNDERWRITERS SUBSCRIBING TO COVER NOTE 95-3317(A), Certain Underwriters Subscribing to Policy of Insurance 95-3317(B), Certain Underwriters Subscribing to Cover Note 96-3393(A), and Certain Underwriters Subscribing to Policy of Insurance 96-3393(B), Cliffs Drilling Company, Soriero & Company, Inc., and Aon Texas Acquisitions Corporation.

Court of Appeal of Louisiana, First Circuit.

Rehearing Denied January 10, 2003.

Writ Denied April 21, 2003.


Attorney(s) appearing for the Case

George H. Robinson, Jr., George Arceneaux III, P. Matthew Jones, Lafayette, Counsel for Plaintiffs/Third Appellants Mobil Exploration & Producing U.S. Inc., et al.

Newman Trowbridge, Jr., Lafayette, Marc R. Brosseau, Denver, CO, Counsel for Plaintiffs/Appellees St. Mary Land & Exploration Co., et al.

Winston Edw. Rice, Covington, Dr. Sal Litvinoff, Baton Rouge, Counsel for Defendant/First Appellant Cliffs Drilling Company.

James L. Cornell, Houston, TX, Counsel for Defendant/Appellee Cliffs Drilling Company.

Kent E. Westmoreland, J. Clifton Hall III, Wendy T. Blanchard, Karen K. Milhollin, Houston, TX, Counsel for Defendants/Second Appellants Certain Underwriters.

Richard P. Ieyoub, Attorney General, Isaac Jackson, Jr., Assistant Attorney General, Baton Rouge, Patrick H. Martin, Clinton, Counsel for Intervenor State of Louisiana Through State Mineral Board and the Office of Mineral Resources of the Department of Natural Resources.

Before: WHIPPLE, LANIER, and KLINE, JJ.


KLINE, J.

This is an appeal from a judgment in favor of an oil company and its co-owners of various rights and interests, against a drilling company and its insurers for contractual and tort damages associated with the "blowout" of a well. For the reasons that follow, we affirm in part and reverse in part.

FACTS AND PROCEDURAL HISTORY

On February 14, 1995, Mobil Exploration & Producing U.S. Inc. ("MEPUS...

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