Berkley v. Railroad Commission of Texas

282 S.W.3d 240, 177 Oil & Gas Rep. 889, 2009 Tex. App. LEXIS 2312, 2009 WL 839064
CourtCourt of Appeals of Texas
DecidedMarch 31, 2009
Docket07-07-0292-CV
StatusPublished
Cited by9 cases

This text of 282 S.W.3d 240 (Berkley v. Railroad Commission of Texas) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berkley v. Railroad Commission of Texas, 282 S.W.3d 240, 177 Oil & Gas Rep. 889, 2009 Tex. App. LEXIS 2312, 2009 WL 839064 (Tex. Ct. App. 2009).

Opinion

Opinion

BRIAN QUINN, Chief Justice.

Mike and Kathryn Berkley and Thomas Hartman (referred to by name or collectively as the Land Owners) appeal from *242 the trial court’s judgment affirming an order of the Texas Railroad Commission (the Commission). That order approved the application of L & R Tank Trucks for authority to use the G. Lynch No. 1 well in the Sledge Field, Montague County, Texas, to inject and dispose of up to 3000 barrels of salt water per day between 2,762 and 2,990 feet below the surface. The Berkleys and Hartman own the surface and mineral rights in lands adjoining the location of the injection well and assert nine issues in effort to reverse the trial court’s judgment. They involve claims of trespass and the unconstitutional taking of property, the failure to abide by rules of procedure, and the existence of sufficient evidence to support the Commission’s ruling. For reasons to be explained, we affirm the judgment.

Standard of Review

Appellate courts are afforded a limited review of agency orders. This is so because we accord substantial deference to the agency’s expertise. Railroad Comm’n v. Torch Operating Co., 912 S.W.2d 790, 792 (Tex.1995). The circumstances allowing us to reverse or alter those orders are limited to situations wherein substantial rights have been affected by the decision due to the order being in violation of constitutional or statutory law or the decision exceeding the agency’s statutory authority, arising through unlawful procedure, being affected by other errors of law, lacking the support of substantial evidence, or being arbitrary or capricious and consequently an abuse of discretion. Tex. Gov’t Code Ann. § 2001.174(2) (Vernon 2008). Furthermore, we do not look to the correctness of the order but only to its reasonableness. City of El Paso v. Pub. Util. Comm’n, 883 S.W.2d 179, 185 (Tex.1994). That is, the standard of review is not whether the agency reached what we would deem the correct decision but whether the record contains some reasonable basis for the decision made. Id. So, we do not re-weigh the evidence, see Tex. Gov’t Code Ann. § 2001.174 (Vernon 2008), but rather assess whether substantial evidence (ie. more than a scintilla) supported the ruling. Railroad Comm’n v. Torch Operating Co., 912 S.W.2d at 792. With that said, we turn to the arguments before us.

Trespass and Unconstitutional Taking

As previously alluded to, the Land Owners assert that the Commission’s ruling was wrong because it violated both the laws of trespass and the constitutional restrictions against taking property without just compensation. This supposedly was so because the order was nothing short of state action granting L & R Tank Trucks the authority to trespass upon and take their subsurface property interests. We disagree.

That the decision does not authorize a trespass was established in the opinion of FPL Farming Ltd. v. Texas Natural Resource Conservation Comm’n, No. 03-02-0477-CV, 2003 Tex.App. Lexis 1074 (Tex. App.-Austin, February 6, 2003, pet.denied) (not designated for publication). In FPL Farming, like here, an applicant was granted a permit to dispose of water by injecting it into an existing well located near the property of FPL Farming. And, because the waste water would migrate into the subsurface strata of realty owned by FPL, the latter also argued that the decision constituted a governmentally approved trespass and allowed the unconstitutional taking of property. The claims were rejected because 1) the land owner failed to show that his use and enjoyment of the property would be impaired, 2) no evidence illustrated that the injected waters would permanently occupy the subsurface property of the land owner, and 3) securing a permit did not constitute a pub- *243 lie taking, i.e. did not authorize any injury to person or property or authorize the invasion of another’s property rights. Id. at *11-16; accord Tex. WateR Code Ann. § 27.104 (Vernon 2008) (stating that receiving a permit under Chapter 27 of the Water Code “does not relieve [the recipient] from any civil liability”); 30 Tex. Admin. Code § 305.122(c) (2009) (stating that the issuance of a permit does not authorize any injury to persons or property or an invasion of other property rights, or any infringement of state or local law or regulations). We find this outcome logical and authoritative.

We take from FPL Farming, the foregoing statutes and regulations, and other authorities cited below that the permit process has limited effect. Specifically, securing a permit does not immunize the recipient from the consequences of its actions if those actions affect the rights of third parties. Nor does it authorize the recipient to act with impunity viz third parties. Rather, obtaining a permit simply means that the government’s concerns and interests, at the time, have been addressed; so, it, as a regulatory body, will not stop the applicant from proceeding under the conditions imposed, if any. Indeed, the Texas Supreme Court has described the issuance of a permit to drill as a mere “negative pronouncement” that “grants no affirmative rights to the per-mittee to occupy the property.” Magnolia Petroleum Co. v. Railroad Comm’n, 141 Tex. 96, 170 S.W.2d 189, 191 (1943). “It merely removes the conservation laws and regulations as a bar....” Id. Third parties remain free to protect their rights and property, however. See Coastal Oil & Gas Corp. v. Garza Energy Trust, 268 S.W.3d 1, 12 (Tex.2008) (stating that whether subsurface fracing gives rise to an action for trespass is decided by the courts, not the agency considering an application); Gray v. Helmerich & Payne, Inc., 834 S.W.2d 579, 582 (Tex.App.-Amarillo 1992, writ denied) (stating that the receipt of a drilling permit does not undertake to adjudicate property rights). Any dispute regarding the rights of the permittee in relationship to others is left for the courts, not the Commission, to resolve. Magnolia Petroleum Co. v. Railroad Comm’n, 170 S.W.2d at 191.

The situation is much like getting a driver’s license. While some may think that the license allows them to drive upon a neighbor’s lawn, it does not. The home owner may still undertake effort to protect his yard or recover for damages suffered. Nor does the license allow them to ignore other laws and restrictions whether related to or unrelated to driving.

In sum, obtaining the permit at bar neither took property from the Land Owners nor authorized a trespass. Thus, we overrule the issues positing otherwise.

Findings of Fact and Conclusions of Law

The Land Owners next complain of the trial court’s failure to execute findings of fact and conclusions of law.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
282 S.W.3d 240, 177 Oil & Gas Rep. 889, 2009 Tex. App. LEXIS 2312, 2009 WL 839064, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berkley-v-railroad-commission-of-texas-texapp-2009.