BP America Production Co. v. Madsen

2002 WY 135, 53 P.3d 1088, 156 Oil & Gas Rep. 193, 2002 Wyo. LEXIS 149, 2002 WL 31084921
CourtWyoming Supreme Court
DecidedSeptember 19, 2002
Docket01-238
StatusPublished
Cited by15 cases

This text of 2002 WY 135 (BP America Production Co. v. Madsen) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BP America Production Co. v. Madsen, 2002 WY 135, 53 P.3d 1088, 156 Oil & Gas Rep. 193, 2002 Wyo. LEXIS 149, 2002 WL 31084921 (Wyo. 2002).

Opinion

VOIGT, Justice.

[¶1] The Third Judicial District Court has presented two certified questions concerning the jurisdictional provision contained *1090 in the Wyoming Royalty Payment Act (the WRPA), which is found at Wyo. Stat. Ann. § 30-5-803(b) (LexisNexis 2001). We conclude that the WRPA does not confer exclusive jurisdiction over claims brought under it in the district court for the county in which a particular well is located; rather, the intent of the WRPA is to allow such claims to be brought in the district court of any county in which a well is located.

FACTS

[¶2] The appellees are the Plaintiffs and the appellants are the Defendants in a civil action in the district court in Lincoln County. 1 The Plaintiffs, as holders of overriding royalty interests, seek additional royalties under the WRPA from the Defendants, who are the oil and gas producers. The lawsuit covers claims for wells located in Lincoln County and in other Wyoming counties. An issue has been raised whether the district court for Lincoln County has jurisdiction over the claims arising from wells not located in that county. In that regard, Wyo. Stat. Ann. § 30-5-808(b) provides:

The district court for the county in which a well producing oil, gas or related hydrocarbons is located has jurisdiction over all proceedings brought pursuant to this article and the prevailing party in any proceedings brought pursuant to this article shall be entitled to recover all court costs and reasonable attorney's fees.

(Emphasis added.)

CERTIFIED QUESTIONS

[¶3] In a Notice of Agreement to Answer Certified Questions dated December 4, 2001, we informed the district court and the parties that we would answer the following certified questions:

1. Does Wyo.Stat. § 80-5-808(b) confer exclusive jurisdiction over claims under the Wyoming Royalty Payment Act in the district court for the county in which a well producing oil, gas, or related hydrocarbons is located?
2. If so, may the provisions of Wyo. R.Civ.P. 23 override the grant of exelu-sive jurisdiction such that a district court may, in the context of a class action, adjudicate WRPA claims relating to wells not located in the county in which the class action is pending?

STANDARD OF REVIEW

[T4] In a W.RAP. 11 certification of questions of law, we rely entirely upon the factual determinations made in the trial court. Wexpro Co. v. Brimhall, 7 P.3d 42, 43 (Wyo.2000) (citing Allhusen v. State By and Through Wyoming Mental Health Professions Licensing Bd., 898 P.2d 878, 881 (Wyo. 1995)). The following rules apply when the question is one of statutory intent:

"[We look first to the plain and ordinary meaning of the words to determine if the statute is ambiguous. Olheiser v. State ex rel. Worker's Compensation Div., 866 P.2d 768, 770 (Wyo.1994), citing Parker Land & Cattle Co. v. Game & Fish Comm'n, 845 P.2d 1040, 1042-483 (Wyo.1993). A statute is clear and unambiguous if its wording is such that reasonable persons are able to agree on its meaning with consistency and predictability. Parker Land & Cattle, at 1043. Conversely, a statute is ambiguous if it is found to be vague or uncertain and subject to varying interpretations. Id. ... Ultimately, whether a statute is ambiguous is a matter of law to be determined by the court. Id.
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When a statute is sufficiently clear and unambiguous, we give effect to the plain and ordinary meaning of the words and do not resort to the rules of statutory construction. Tietema v. State, 926 P.2d 952, 954 (Wyo.1996); Butts v. State Board of Architects, 911 P.2d 1062, 1065 (Wyo.1996). Instead, our inquiry revolves around the ordinary and obvious meaning of the words employed according to their arrangement and connection. In doing so, we view the statute as a whole in order to ascertain its intent and general purpose and also the meaning of each part. 'We give effect to every word, clause and sentence and con *1091 strue all components of a statute in pari materia.' Parker, 845 P.2d at 1042."

Murphy v. State Canvassing Bd., 12 P.3d 677, 679 (Wyo.2000) (quoting Campbell County School Dist. v. Catchpole, 6 P.3d 1275, 1284 (Wyo.2000)).

DISCUSSION

[15] The position of the Defendants is simple and straightforward. They contend that the statute contains an unambiguous geographic limitation that allows claims to be brought under the WRPA only in the district court for the county in which the well is located. They further argue that the legislature is empowered to set the jurisdictional limits of the state's courts. See Wyo. Const. art. 5, § 10; Mutual of Omaha Ins. Co. v. Blury-Losolla, 952 P.2d 1117, 1121 (Wyo. 1998) (legislature sets jurisdictional limits of county courts); Glandt v. Taylor, 920 P.2d 647, 649 (Wyo.1996) (superseded by statute) (district court granting divorce to retain jurisdiction); Stalkup v. State Dept. of Environmental Quality (DEQ), 838 P.2d 705, 714 (Wyo.1992) (actions brought against DEQ to be brought in Laramie County); and Nicholaus v. Nicholaus, 756 P.2d 1338, 1340 (Wyo. 1988) (superseded by statute) (district court granting divorce to retain jurisdiction). Because oil and gas royalty interests are real property interests, the Defendants also find the geographic limitation of Wyo. Stat. Ann. § 30-5-308(b) to be consistent with the general rule that real property disputes are handled where the real property is located.

[¶6] The position of the Plaintiffs is equally simple and straightforward. While they do not specifically state that the statute is unambiguous, they do contend that the statute clearly allows for suits to be brought where a (meaning "any") well is located, not just where the well is located. They stress the fact that the WRPA, as a remedial statute, is to be liberally construed to achieve its goal of preventing underpayment by producers. See Moncrief v. Harvey, 816 P.2d 97, 105 (Wyo.1991); State v. BHP Petroleum Co., Inc., 804 P.2d 671, 672 (Wyo.1991); and Wold v. Hunt Oil Co., 52 F.Supp.2d 1330, 1335 (D.Wyo.1999).

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2002 WY 135, 53 P.3d 1088, 156 Oil & Gas Rep. 193, 2002 Wyo. LEXIS 149, 2002 WL 31084921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bp-america-production-co-v-madsen-wyo-2002.