Drake’s Folly Pennsylvania 69 feet deep well 20 barrels/day Aug. 1859 First Jackup drilling rig was developed and put in operation Jan. 1901 1920 1927 First version of the Texas Oilfield Antiindemnity Statute passed by Texas Legislature. Louisiana Legislature creates their version shortly thereafter. 1962 1972 1973 First platform well beyond the site of land, 12 miles off La. coastline 1934 Congress amends the Outer Continental Shelf Lands Act-OCSLA Congress amends USL&H Act OCSLA was passed by U.S. Congress 1950------1960 First submerge drilling barge. Louisiana Jones Act and Death on the High Seas Act passed by U.S. Congress First semisubmersible drilling rig put into operation 1953 First well over open water put down from pier built out into the water. United States Longshore & Harbor Worker Compensation Act passed by U.S. Congress Spindletop Near Beaumont, TX. 1020’ 84,000 brls/ day 1937 “Piper Alpha” platform fire, North Sea. 167 fatalities “Ocean Ranger” Semisubmersible capsizes; 84 fatalities 1978 1982 1947 Seth Becker, double, below knee amputation during gravel pack job on jackup off La. coast on OCS. $43mil verdict “Sonat” fire during snubbing operations, North Louisiana. 7 fatalities 1985 1998 1999 Seth Becker Vs Tidewater Marine, R&B Falcon, Baker Hughes, etal 5th Cir., June 2003 Seth Becker was working a summer, college-intern job for Baker. The intent of both Becker and Baker was that Becker was to learn everything he possibly could, concerning all aspects of what Baker does in the oil and gas industry. On the day of his accident Becker was a temporary substitute worker, replacing another Baker employee who needed some time off. The worker that Becker replaced had been permanently assigned to an offshore work vessel, the Republic Tide. Becker, Baker, and the Republic Tide were engaged in a “gravel packing” job which entails pumping gravel from the Republic Tide, through specialized hoses and down into a wellbore. During the job, the vessel lost its ability to remain positioned next to the jack-up drilling rig and began drifting away. Two mooring lines snapped and Becker was pinched by the specialized hose as it was stretched taunt between the rig and the drifting work boat. Becker suffered traumatic amputations of both legs, below the knee. Becker sued Baker under the Jones Act, alleging he was a member of the crew of a vessel, i.e., a seaman. The actual injury occurred while Becker was on the Cliff’s jack-up. Accident occurred on the OCS with contributing factors involving the operation of the vessel, specifically, the vessel’s anchor system and thruster positioning system failed. Based on facts presented during trial, a Louisiana jury determined Becker was a seaman who was assigned to the vessel, Republic Tide. As a seaman, Becker was entitled to sue his employer, Baker Hughes, under the Jones Act. The jury awarded Seth Becker $43 million in damages. Baker Hughes appealed. Becker Vs Baker Hughes Energy Resources Technology ---Operator----- R&B Falcon pka, Cliffs Hydra Reel employer/ employee Baker Hughes -jack-up drilling rig- Jones Act Lawsuit Seth Becker 905b & unseawty Co-flex Offshore service contractor M/V, “Republic Tide” Pltf Product Makers Blanket Time Charter Agreement w/K4K. X Gross neg. Vessel tenders lawsuit to BH based on Time Charter Agreement On appeal, the 5th Circuit said Becker could not maintain a Jones Act claim against Baker Hughes because he was not a Jones Act seaman for the following reasons: Becker’s status as a land based employee had not been fundamentally altered by his temporary assignment to a vessel. Becker could not establish that he spent at least 30% of his time aboard a vessel or a fleet of vessels. Important sound bites from the opinion: The [Unites States] Supreme Court has established a two-prong test to determine Jones Act status. First, “an employee’s duties must contribute to the function of the vessel or to the accomplishment of its mission.” Second, “a seaman must have a connection to a vessel in navigation (or to an identifiable group of such vessels) that is substantial in terms of both duration and nature.” …for pltf to qualify for the Jones Act’s protection, he must have undergone a substantial change in status, not simply serve on a boat sporadically. “As a general rule, a worker must show [substantial duration] by demonstrating that 30% or more of his time is spent in service of that vessel.” “In short, plaintiff was a land-based worker who happened to be assigned to a mission on a vessel; he was not a sea-based worker…whose only connection to land-based employment was the mere possibility of being transferred to such a position at an indeterminate future date.” (contrasting the Becker case with the Manuel case) Merely serving on a voyage does not warrant Jones Act protection. …”the ultimate inquiry is whether the worker in question is a member of the vessel’s crew or simply a land-based employee who happens to be working on the vessel at a given time.”