Amerada Hess Corp. v. Furlong Oil & Minerals Co.

336 N.W.2d 129, 79 Oil & Gas Rep. 66, 1983 N.D. LEXIS 308
CourtNorth Dakota Supreme Court
DecidedJune 24, 1983
DocketCiv. 10430
StatusPublished
Cited by12 cases

This text of 336 N.W.2d 129 (Amerada Hess Corp. v. Furlong Oil & Minerals Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amerada Hess Corp. v. Furlong Oil & Minerals Co., 336 N.W.2d 129, 79 Oil & Gas Rep. 66, 1983 N.D. LEXIS 308 (N.D. 1983).

Opinions

PEDERSON, Justice.

Amerada Hess Corporation appeals from an order dissolving a temporary restraining order. We reverse and remand.

The K-119 Well, which is the subject of this controversy, was drilled in 1956 by Am-erada Petroleum Corporation, predecessor [131]*131to Amerada Hess Corporation, pursuant to an oil and gas lease from Clifford and Alice Syverson. The well was completed in the Rival Zone of the Madison Pool and produced oil and gas until September 1969 when it was shut-in.1 Amerada released the oil and gas lease as to the Syversons’ interest in November 1974.

In November 1982, the Syversons leased their mineral interests to Furlong Oil and Mineral Company. Furlong subsequently applied for and received permission from the North Dakota Industrial Commission to reenter the well bore of the K-119 Well and reeomplete the well in the Midale and Rat-cliffe Zones of the Madison Formation. Furlong began preparation for reentry into the K — 119 Well. Access roads were prepared and a work-over rig was secured. On April 6, 1983, the work-over rig was moved on location and reentry operations were started.

On April 6, 1983, Amerada commenced this action with a summons and complaint seeking to enjoin Furlong from entering, using, or interfering with the well bore of the K-119 Well. Amerada alleged that the Tioga-Madison Unit owned the well bore and casing of the K-119 Well; that the K-119 Well had not been plugged or abandoned; and that, unless Furlong was restrained from further entry or interference with the well bore of the K-119 Well, the Tioga-Madison Unit would be deprived of its property rights.2 Also, on April 6, 1983, Amerada secured a temporary restraining order enjoining Furlong from entering or interfering with the well bore of the K-119 Well. A hearing on the application for a temporary injunction was set for April 19, 1983, but has not been held.

Furlong was served with the restraining order on the afternoon of April 6th. At that time reentry operations were underway and a depth of approximately 5,000 feet had been reached. On the morning of April 7, 1983, Furlong filed an ex parte application to dissolve the temporary restraining order. Furlong alleged that the action by Amerada constituted an impermissible collateral attack on a prior Industrial Commission order,3 that no irreparable injury had been established, and that the security posted was inadequate. Waiving notice, both parties appeared at 2 p.m. on April 7th for a hearing on the motion to dissolve the restraining order. The court allowed both parties to present oral testimony at the motion hearing. At the close of the hearing, the district court ruled that the temporary restraining order should be dissolved and an order to that effect was entered immediately thereafter.

Following the dissolution of the restraining order, Furlong renewed its reentry operations at the K-119 Well. On April 8, 1983, Amerada appealed the April 7, 1983 order dissolving the temporary restraining order and applied to this Court for an immediate stay of the order. We vacated the April 7, 1983 order that same day and once again Furlong was forced to halt its reentry operations at the K-119 Well. By the time reentry operations were halted on April 8th, [132]*132the total depth of the well bore had been probed and the 8300 feet of pipe used to probe the well bore had been withdrawn and was being stored in 90-foot lengths in a rack on the work-over rig.

On April 12, 1983 Furlong applied to this Court for an order to either reinstate the April 7,1983 order dissolving the temporary restraining order, or to dissolve our order of April 8 and remand the ease for a hearing on whether or not a temporary injunction should issue, or to modify the order to allow Furlong to enter the site for the purpose of laying down the rig and allowing the work-over rig to be released. On April 13, 1983, we amended our order of April 8 to allow Furlong to reenter the well bore for the limited purpose of laying down the pipe and releasing the rig. We further ordered that the appeal be expedited, and oral argument was scheduled for April 22, 1983.

The only issue for us to address is whether or not the district court abused its discretion when it dissolved the temporary restraining order.4

A restraining order, or an order to show cause in the nature of a restraining order, may be issued ex parte without a hearing if the moving papers show “... that there exists such an exigency or occasion as requires the immediate issuance of an order so that the rights of the parties may be preserved.” Section 32-06-07, NDCC. A temporary restraining order is, in effect, a species of injunction. The purpose of a temporary restraining order is to maintain the status quo until a determination can be made on the temporary injunction issue. Gunsch v. Gunsch, 69 N.W.2d 739 (N.D.1955). See also 42 Am.Jur.2d, Injunctions, § 10.

The decision to grant, deny, continue, or dissolve a temporary restraining order is equitable in nature and rests within the sound discretion of the trial court. Allen v. Minot Amusement Corp., 312 N.W.2d 698 (N.D.1981). In reviewing an appeal from an order dissolving a temporary restraining order, we are limited to the question of whether or not the trial court abused its discretion. Edgeley Ed. Ass’n v. Edgeley Pub. Sch., Etc., 231 N.W.2d 826 (N.D.1975).

On the hearing of the motion to dissolve a restraining order, the court will consider the object and nature of the relief sought in the complaint, as well as the property or other rights requiring protection and the interests of the parties in the subject matter. The court must consider the injury to the defendant if the restraining order is continued and the injury to the plaintiff if it is dissolved. See generally 42 Am.Jur.2d, Injunctions, §§ 323-328. Although a temporary restraining order will be dissolved when the reasons for granting it cease to exist and when it will no longer serve a useful purpose, a properly granted restraining order ordinarily will not be dissolved absent a change in the facts or the law after the time of its issuance. Wahpeton Public Sch. Dist. v. North Dakota Ed. Ass’n, 166 N.W.2d 389 (N.D.1969); Brace v. Steele County, 77 N.D. 276, 42 N.W.2d 672 (1950); 42 Am.Jur.2d, Injunctions, § 326.

The granting of a temporary restraining order does not create a right, but merely protects the rights of a complainant by maintaining the status quo until such time that a show cause hearing on the temporary injunction can be held. 42 Am. Jur.2d, Injunctions, § 323. The court does not decide the case on the merits at the time of the hearing of the motion to dissolve, but merely determines if a sufficient prima facie showing has been made entitling the complainant to a temporary re[133]*133straining order until a hearing on the temporary injunction is held. 42 Am.Jur.2d, Injunctions, § 328.

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Bluebook (online)
336 N.W.2d 129, 79 Oil & Gas Rep. 66, 1983 N.D. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amerada-hess-corp-v-furlong-oil-minerals-co-nd-1983.