Gasoline spills into creek, lake: Trespass: Nuisance: Contaminated water: Economic losses: Settlement

Law Reporter, Dec 2004

City of Dallas v. Explorer Pipeline Co., Tex., Dallas County Dist. Ct. No. 00-09678, Feb. 18, 2004.

A gasoline pipeline owned by Explorer Pipeline Company (Explorer) ruptured, leaking methyl tertiary butyl ether (MTBE), a gasoline additive, into a creek and lake that the city of Dallas used as a water source. As a result of the contamination, the city had to build a pipeline to another lake, at a cost of about $9 million.

The city sued Explorer and three oil refineries, alleging trespass, negligence, and nuisance, among other claims. Plaintiff alleged defendants knew the pipeline was becoming corroded. Plaintiff also sued three refineries, alleging MTBE was a defective product and the refineries were strictly liable for failure to warn the city that the MTBE was being transported in a pipeline that they knew was prone to rupturing.

Explorer settled for a total of $8.85 million, including $600,000 before trial and $8.25 million during trial. The refiner defendants settled before trial for $900,000.

Plaintiff's experts included Joe Odencrantz, MTBE modeling, Newport Beach, CaL; Charles Powell, metallurgy, Norman, Okla.; Don Deavor, petroleum pipeline operations, Houston, Tex.; Marc Lappe, MTBE toxicology, Gualala, CaI.; and Kirk Watson, public policy, Austin, Tex.

Defendants' experts included David Alien, MTBE, Houston, Tex.; John Beavers, pipeline corrosion, Alexandria, Va.; James Davidson, MTBE, Denver, Colo.; Joseph Rodricks, toxicology, Washington, D.C.; and Michael Maddox, pipeline operations, Houston, Tex.

Plaintiff's Counsel

*Ted B. Lyon Jr., Mesquite, Tex.

*Marquette W. Wolf, Mesquite, Tex.