Cerny v. Marathon Oil Corp.

480 S.W.3d 612, 2015 Tex. App. LEXIS 10364, 2015 WL 5852596
CourtCourt of Appeals of Texas
DecidedOctober 7, 2015
DocketNo. 04-14-00650-CV
StatusPublished
Cited by8 cases

This text of 480 S.W.3d 612 (Cerny v. Marathon Oil Corp.) 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
Cerny v. Marathon Oil Corp., 480 S.W.3d 612, 2015 Tex. App. LEXIS 10364, 2015 WL 5852596 (Tex. Ct. App. 2015).

Opinions

OPINION

Opinion by:

Rebeca C. Martinez, Justice

Michael A. Cerny and Myra L. Cerny, individually, and as next friends of their minor son Cameron A. Cerny (collectively, the Cernys) sued Marathon Oil Corporation 1 and Marathon Oil EF, LLC (Mara[615]*615thon), as well as Plains Exploration & Production Company (Plains), for private nuisance and negligence claims asserting that toxic emissions from oil and gas operations in the Eagle Ford Shale near their home in Karnes County caused damage to their health and their property. The .trial court granted the defendants’ motions for summary judgment and rendered judgment that the Cernys take nothing. We affirm the trial court’s judgment.

Factual and PROCEDURAL BackgRound

The Cernys moved to a “fixer-upper” home on a one-acre tract of land in Kames County in 2002. In 2010, the Cernys leased the mineral rights to Marathon’s predecessor in exchange for a lease bonus and royalty interest. The lease and subsequent addendum authorized Marathon to utilize the surface of the Cernys’ land for oil and gas operations and to drill horizontal wells. The Cernys’ lease was pooled with other leases to create a larger drilling unit named the Brysch-Adams Unit. In 2012, Marathon drilled its first horizontal well on the Brysch-Adams Unit; the unit now contains three wells. Marathon has not placed any wellheads or infrastructure on the surface of the Cernys’ property. The Cernys receive consistent royalty payments from the sale of production from the Brysch-Adams Unit.

In 2013, the Cernys filed suit against Marathon and Plains alleging that their negligent oilfield operations subjected them to toxic chemicals and noxious odors that worsened their existing health problems, caused new health problems, and damaged their property by creating sinkholes and damaging the home’s pier and beam foundation. The Cernys’ Fourth Amended Petition, which the parties agree is the live petition, asserted that “[w]ith the arrival of the technology to capture hydrocarbons in shale formations, came-an influx of oilfield activity into Kames County, Texas, in the heart of the Eagle Ford Shale,” consisting of “[production operations, including drilling, completions, work-overs, testing, processing, and other oilfield activities.” The Cernys alleged that, by early 2012, their property was “completely surrounded” by Marathon’s wells and Plains’ production facilities which emitted noxious odors and chemicals and created constant traffic, dust, and noise, all of which radically altered their previously peaceful, rural lifestyle. The Cernys alleged that the complained of well sites and facilities are in the vicinity, or “within a short distance,” of their property; they also alleged that fracking operations have occurred “within three miles” of the Cemy residence. The Cernys pled causes of action for private nuisance, negligence, gross negligence, and negligence per se.

In their petition, the Cernys specifically disclaimed that they were seeking “any ‘personal injury damages’ that would invoke [the need for expert testimony under] Merrell Dow Pharms. v. Havner ” and its progeny. See Merrell Dow Pharms. v. Havner, 953 S.W.2d 706 (Tex.1997). The Cernys further “disclaim[ed] any and all claims seeking recovery for a diagnosed ‘disease’ that also occurs genetically and for which a large percentage of the causes are unknown.” They stressed that they “do NOT seek recovery in damages for defendants’ actions having caused the particular ‘disease.’ ” The Cernys’ petition did not identify their pre-existing diseases and physical symptoms, and did not identify the exacerbated conditions or new “symptoms” which they allege were caused by the defendants’- conduct. The Cernys characterized the damages sought as:

[616]*616• Compensation for “(a) reasonable and necessary medical expenses incurred in the .past, for treatment due to the defendants’ conduct; (b) reasonable and necessary medical expenses [which] are likely to be incurred in the future due to defendants’ conduct; (c) loss of earning capacity.”
• “[Recovery for their symptoms which are typical of discomfort rather than disease” due to past and future “fear, apprehension, offense, discomfort, annoyance, sickness, injury to health, exacerbation of physical health or preexisting condition, ' harm from assaúlt on’ plaintiffs’ senses, nausea, loss of peace of mind, emotional harm or distress, inconvenience, and deprivation of enjoyment of their property.” They allege these damages also include (i) past and future physical pain and suffering, (ii) past and future mental pain' or anguish, (iii) disfigurement, (iv) loss of enjoyment of life, and (v) loss of use of their propérty. '
• Remediation damages to repair dam- • age to the structure of the home.
• Loss of market value of the property due to sinkholes, chemical pollution, ' noxious odors, dead trees, and dead animals on the property.
• Punitive damages (re: gross negligence).

Marathon and Plains filed no-evidence and traditional motions for summary judgment asserting there was no evidence, and no issue of material fact, under the Hamer standard on 'all the elements of the claims asserted by the Cernys. While the defendants asserted in their summary judgment motions that the Cernys could not prove any of thé 'elements of their claims, they espeeially focused on the element of causation common to.all of the Cernys’ causes of action.

The Cernys filed a response which attached summary judgment evidence consisting primarily of: (1) the affidavits of Michael, Myrna, and Cameron Cerny stating their personal observations about the nearby oilfield operations, their health symptoms and loss of enjoyment, and the property damage, and drawing inferences as to the connections; (2) the affidavit of Sharon Wilson, a lay person working with Earthworks who took videos of gas plumes at a Plains facility and a Marathon.facility near the Cerny home and air canister samples showing the presence of the same six hazardous substances at the Plains facility and at the Cerny home; (3) the affidavit, report, and supplemental report of Keith Zimmerman, P.E., an air quality expert who conducted air dispersion modeling of a “documented upset condition” at the nearby Marathon Yosko site and air modeling of the permitted emissions levels at three other Marathon facilities near the Cerny home, and found that hazardous compounds were carried on to the Cerny property during the five-week emissions event and that the other three Marathon facilities 2 exceeded federal ambient air quality standards, thereby potentially exposing the Cernys to excessive nitrogen dioxide; (4) the affidavit, report, and supplemental report of David L. Mitchell, Ph.D., a forensic meteorologist who performed air dispersion modeling of emissions on 22 well sites within one and one-half miles of the Cerny property using “pseudo-point” source points (“open air mud pits, open air shaker assemblies, open air storage of formation cuttings, and emissions from tanks, valves, and connections”) to represent the combined emissions, and found that a significant amount of chemical compounds, [617]*617including benzene, have impacted the Cer-ny property in excess of four times the TCEQ3

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480 S.W.3d 612, 2015 Tex. App. LEXIS 10364, 2015 WL 5852596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cerny-v-marathon-oil-corp-texapp-2015.