Cabot Oil & Gas Corp. v. Huffman

705 S.E.2d 806, 227 W. Va. 109, 177 Oil & Gas Rep. 894, 2010 W. Va. LEXIS 122
CourtWest Virginia Supreme Court
DecidedNovember 3, 2010
Docket35508, 35509, 35510, 35511
StatusPublished
Cited by15 cases

This text of 705 S.E.2d 806 (Cabot Oil & Gas Corp. v. Huffman) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cabot Oil & Gas Corp. v. Huffman, 705 S.E.2d 806, 227 W. Va. 109, 177 Oil & Gas Rep. 894, 2010 W. Va. LEXIS 122 (W. Va. 2010).

Opinion

PER CURIAM:

The appellants in these four consolidated cases, Randy Huffman, Cabinet Secretary of the West Virginia Department of Environmental Protection, Office of Oil and Gas (hereinafter referred to as “DEP Office of Oil and Gas”); the West Virginia Division of Natural Resources (hereinafter referred to as “DNR”); the Sierra Club, Inc. (hereinafter referred to as “Sierra Club”); and Cordie O. Hudkins, West Virginia Highlands Conservancy, Inc., and Friends of Blackwater (hereinafter collectively referred to as “Friends of Blackwater”), appeal from an order entered June 17, 2009, by the Circuit Court of Logan County. By that order, the circuit court vacated an earlier order of the DEP Office of Oil and Gas, which ruling had refused to issue five oil and natural gas well drilling permits. The circuit court further directed the DEP Office of Oil and Gas to issue the requested permits to allow development of said wells in Chief Logan State Park by the appellee, Cabot Oil & Gas Corporation (hereinafter referred to as “Cabot”), under its lease of the subject mineral rights from the appellee, Lawson Heirs, Inc. (hereinafter *112 referred to as “Lawson Heirs”). 1 On appeal to this Court, the parties 2 dispute whether the requested permits should be issued. Upon a review of the parties’ arguments, the record presented for appellate consideration, and the pertinent authorities, we affirm the circuit court’s June 17, 2009, order.

I.

FACTUAL AND PROCEDURAL HISTORY

The instant controversy has its origins in a 1960 deed between the Lawson Heirs and the Logan Civic Association, and legislation that was enacted after the subject deed’s execution. Since the early 1800s, the ancestors of the Lawson Heirs have owned substantial land holdings in present-day Logan County, West Virginia, title to which has, through time, passed to the Lawson Heirs. In 1960, the Lawson Heirs and the Logan Civic Association began negotiations about forming a West Virginia state park in Logan County. Through these discussions, the Logan Civic Association acted on behalf of the West Virginia Conservation Commission (hereinafter referred to as “Conservation Commission”), which entity is the predecessor to the West Virginia Division of Natural Resources (DNR), who is an appellant in the instant proceedings.

On November 18, 1960, the Lawson Heirs conveyed 3,271 acres of surface land and coal to the Logan Civic Association for $90,000. In the deed memorializing this conveyance, the Lawson Heirs explicitly reserved the property’s oil and gas rights as well as the ability to drill wells for the extraction and production of these resources:

There is excepted and reserved from this conveyance all oil and gas, or either, within and underlying the lands hereby conveyed, with the right to search for, explore, operate for, drill, produce and market oil, gas and gasoline, together with the rights of way and servitude for the laying of pipe lines, building telephone and telegraph lines, structures, plant houses, drips, tanks, stations, electric power lines, meters, and regulators, and all other rights and privileges necessary and incident to and convenient for the economic operation of excepted oil and gas, or either, and the rights excepted and reserved and the care of the excepted products.
The excepted rights of way and servitudes may also be used by the party of the first part [the Lawson Heirs], its successors, assigns, and lessees, for search for, exploring, operating for, drilling, producing, and mai’keting oil, gas, or gasoline from other lands owned- or held under lease.

Also contained in the deed is the recognition that the subject property was intended to be used as a West Virginia state park. To this end, the deed contemplated this use and explained, in great detail, that

[n]o well shall be drilled, without the consent in writing of the party of the second part [Logan Civic Association], its successors or assigns, first had and obtained, within one thousand (1,000) feet of any building or structure, tipple, shaft, air shaft, or lake; within two hundred (200) feet of any existing or projected entry, road, riding trial, haulway, or air course of any mine in operation, any of which is now or may hereafter be constructed upon the premises hereby conveyed; or within the view or site of any overlook that has been developed for public use; provided, however, that neither the party of the first part, its successors, assigns, or lessees, shall in any event be required to remove any equipment, facility, or installation by reason of these restrictions, if at any time the same are constructed or installed, the location thereof complied with the requirements herein set forth.
No road, power line, pipe line, or telephone line shall be constructed without the prior written approval, as to location, of the Director of the Conservation Commission *113 of West Virginia, or his authorized representative, but such written approval shall not be unreasonably or arbitrarily withheld. Any timber that is cut in the construction of any of the above shall be sawed into standard log lengths and left along the right of way. This timber shall be the property of the party of the second part, its successors or assigns.
What timber is cut, in addition to being sawed into logs, the trees shall be trimmed and the branches stacked and piled in accordance with the rules and regulations of the Director of the Conservation Commission of West Virginia, its successors or assigns. Where timber is cut for rights of way for pipe line, or power or telephone lines, the rights of way shall be cleared for reseeding.
When in the exercise of any of the rights excepted or reserved it becomes necessary to expose the mineral soil, such shall be reseeded in manner that is approved in writing by the Director of the Conservation Commission of West Virginia, or his authorized representative, after the purpose of such exposure has been accomplished.
All abandoned roads shall be treated in the manner approved by the Conservation Commission of West Virginia.

Furthermore, the deed specified the manner in which the Lawson Heirs would exercise their oil and gas rights and the manner in which such wells would be developed.

Following this initial conveyance, the Logan Civic Association conveyed the entire parcel to the State of West Virginia for the benefit of the Conservation Commission, with said property to be managed first as Chief Logan Recreation Area and later as Chief Logan State Park. 3 Chief Logan Recreation Area opened to the public in 1961.

Also in 1961, the West Virginia Legislature passed W. Va.Code § 20-4-3 (1961) (Repl. Vol.1961), which became effective on July 1, 1961. W. Va.Code § 20-4-3, which is the predecessor to present W. Va.Code § 20-5-2(b)(8) (2006) (Repl.Vol.2008), provided, in relevant part:

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
705 S.E.2d 806, 227 W. Va. 109, 177 Oil & Gas Rep. 894, 2010 W. Va. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cabot-oil-gas-corp-v-huffman-wva-2010.