American Energy Corp. v. Datkuliak

882 N.E.2d 463, 174 Ohio App. 3d 398, 2007 Ohio 7199
CourtOhio Court of Appeals
DecidedDecember 28, 2007
DocketNo. 07 MO 3.
StatusPublished
Cited by31 cases

This text of 882 N.E.2d 463 (American Energy Corp. v. Datkuliak) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Energy Corp. v. Datkuliak, 882 N.E.2d 463, 174 Ohio App. 3d 398, 2007 Ohio 7199 (Ohio Ct. App. 2007).

Opinion

*403 Vukovich, Judge.

{¶ 1} Defendants-appellants, Charles and Beverly Datkuliak (“the Datkuliaks”), appeal the decision of the Monroe County Common Pleas Court holding that plaintiffs-appellees American Energy Corporation (“AEC”) and Consolidated Land Company (“CLC”) have the right to mine the Pittsburgh No. 8 vein of coal below the Datkuliaks’ property and that the Datkuliaks have to cap and plug their gas well that lies within the coal-mining area. This appeal presents four issues. The first is whether the appeal is moot. The second issue is whether the trial court correctly interpreted the relevant deeds at issue to determine whether AEC and CLC were entitled to all the coal and whether the Datkuliaks had to plug and cap their well. The third issue is whether the trial court erred in excluding expert testimony. The final issue is whether the trial court’s decision constituted a governmental taking for which compensation must be given. For the reasons stated below, we find that the appeal is moot. However, even if the merits are addressed, we find no error with the trial court’s determination.

STATEMENT OF FACTS

{¶ 2} The Datkuliaks own a parcel of property located in Sunsbury Township, Monroe County, Ohio. They own the surface estate and the oil-and-gas estate. CLC, however, owns the coal estate.

{¶ 3} The coal estate was first severed from the surface estate in 1922 by a deed (“coal-severance deed”). This deed states that the grantors sold “ALL the COAL commonly known as the Pittsburgh Vein and geologically known as SEAM Number Eight (8).” (Emphasis sic.) The coal-severance deed then goes on to state:

{¶ 4} “Together with the right and privilege to mine all of said coal without reservation or liability for damages that may arise by reason of mining said coal or the operation of said mine or mines to the surface or to the improvements upon the surface over said coal, or to any waters or waterways situated upon or on said premises, and the right to use any and all entries, and other passage ways under said lands for the purpose of transporting and mining coal from adjoining and contiguous territory; and together with the right and privilege to use the necessary surface over said coal for the purpose of erecting, constructing and maintaining the necessary air shafts to ventilate mines for the removing of said coal and coal from adjoining and contiguous territory, said air shafts to be kept in such repair and so guarded by said Grantees, their heirs and assigns, as not to endanger stock on said premises; and together with the right to enter upon described premises at all reasonable times to make necessary surveys, or to drill or examine said coal, in any reasonable manner.”

*404 {¶ 5} The next paragraph of the deed contains a reservation for the surface estate to drill and operate a gas or oil well. It states:

{¶ 6} “Said Grantors reserve unto themselves and their heirs and assigns the right to drill and operate through said Vein of coal for oil, gas, and any and all other minerals.”

{¶ 7} After a number of conveyances, this coal estate was bought by Youghiogeny and Ohio Coal Company (“Y & 0”). In 1995, Y & 0 sold this coal estate, along with other coal estates, to CLC by deed (“Y & 0 deed”). The Y & 0 deed conveyed all the remaining coal in multiple tracts of land that were described more accurately in an exhibit attached to the deed. CLC leased the coal estate to AEC in 2003 for purposes of mining the coal.

{¶ 8} In 2006, AEC’s land manager contacted the Datkuliaks and informed them that they were going to mine beneath their land. AEC wanted to discuss the capping and plugging of a gas well that was located on the Datkuliaks’ property. The gas well in question was drilled in 1989 and was a functional and operating gas well that the Datkuliaks used to provide gas to heat the buildings on the property. 1 The gas well was drilled to a depth of 2,740 feet below the surface. The Pittsburgh No. 8 seam is located approximately 580 feet below the surface. Thus, piping from the gas well lies within the coal seam. In order to mine all the coal, as AEC wanted, the well had to be capped and plugged.

{¶ 9} It appears that there were attempts to negotiate an agreement as to capping and the plugging of the well. At some point during the negotiations, AEC filed an application with the Division of Mineral Resources (“the division”) to cap and plug the well. That application was denied because AEC was not the owner of the well. Negotiations then fell through and legal action was taken in the Monroe County Common Pleas Court.

{¶ 10} AEC and CLC filed a declaratory-judgment action seeking an order that stated that they are entitled to mine all the coal within the coal estate that they owned and that the Datkuliaks must cap and plug their well. They also sought a permanent and preliminary injunction. The Datkuliaks filed a complaint for declaratory judgment the following day, asking the court to declare that they did not have to cap and plug the well and that AEC and CLC’s right to mine the coal was not paramount to their right to the gas.

{¶ 11} The trial court consolidated the actions. The case proceeded through expedited discovery, and a trial before the bench occurred on June 27, 2007. It is noted that in addition to the declaratory-judgment actions, the record reveals that *405 both parties filed a claim for slander of title against the other. Those claims were severed from the trial and thus are not a matter before this court.

{¶ 12} At trial, the parties agreed that their respective rights were governed by interpretation of deeds. Specifically, did the language in the coal-severance deed indicate that AEC and CLC have the right to all the coal in the coal estate and thus have the right to have the well plugged and capped, or did the language indicate that once the well was drilled, the coal mining must go around the well?

{¶ 13} AEC and CLC argued that their estate to the coal is to all the coal, and if the well is in their way, it must be capped. The Datkuliaks argued that the language in the coal-severance deed indicates that they have the right to drill and operate a well through the vein of coal. Furthermore, since the deed does not contain any language stating that the well cannot interfere with mining, this indicates that the coal estate is not paramount to the gas estate. Thus, the Datkuliaks have no obligation to cap and plug the well. To support this argument, they referenced the other tracts of land that were sold in the Y & 0 deed that contained reservations that an oil or gas well could not interfere with mining. They argue that these tracts in the Y & 0 deed should also be considered in conjunction with the coal-severance deed to determine the rights of the parties.

{¶ 14} Also at the trial, the Datkuliaks attempted to offer expert evidence from three attorneys as to what the language of the deeds meant. The trial court did not allow the testimony of the first attorney because he testified that the language in the deed was not ambiguous. The Datkuliaks then proffered testimony as to what this attorney would testify. The other two attorneys were, however, permitted to testify.

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Cite This Page — Counsel Stack

Bluebook (online)
882 N.E.2d 463, 174 Ohio App. 3d 398, 2007 Ohio 7199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-energy-corp-v-datkuliak-ohioctapp-2007.