City of Pawhuska v. Pawhuska Oil & Gas Co.

1917 OK 397, 166 P. 1058, 64 Okla. 214, 1917 Okla. LEXIS 628
CourtSupreme Court of Oklahoma
DecidedJuly 31, 1917
Docket9084
StatusPublished
Cited by48 cases

This text of 1917 OK 397 (City of Pawhuska v. Pawhuska Oil & Gas Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Pawhuska v. Pawhuska Oil & Gas Co., 1917 OK 397, 166 P. 1058, 64 Okla. 214, 1917 Okla. LEXIS 628 (Okla. 1917).

Opinion

RAINEY, I.

The city of Pawhuska is a city of the first class, and in November, 1909, the voters of said city, by initiative petition, granted to the Pawhuska Oil & Gas Company a franchise for 25 years, authorizing said company to use the streets and alleys of the city for the purpose of laying its gas pipe lines for furnishing the city of Pawhuska and the inhabitants thereof with natural gas. The franchise, among other things, provided that :

“■Said grantee shall furnish natural gas to the citizens, at a reasonable rate, which shall in no case exceed fifteen cents per one thousand cubic feet of gas, as registered by standard meters for the measurement of natural gas, said meters to be furnished by and be the property of grantee, or at a flat rate at the option of the consumer, which said flat rate shall in no case exceed the following prices, to wit. * * * ”

Then follows the schedule of rates.

Prom the time of the granting of said franchise up to the present time the gas company has furnished gas under the terms of the franchise to the city of Pawhuska and its inhabitants. While said company, under said franchise, was furnishing gas both at a flat rate and through standard meters, at meter rates, the Legislature, on April 28, 1913, passed an act requiring all persons, firms, or corporations furnishing natural gas in municipalities of the state to the inhabitants thereof to do so through standard meters at meter rates. Chapter 152, Session Laws 1913. The Pawhuska Oil & Gas Company undertook to install standard meters for furnishing gas to the inhabitants of the city of Pawhuska under the provisions of said statute, and desiring to take advantage of the benefits of the law, notified its consumers of its intention so to do. Some of the inhabitants of said city and the city instituted an action in the district court of Osage county, Okla., seeking to enjoin the gas company from complying with the provisions of said law and from taking advantage of the benefits thereof. The district court granted the injunction, from which action an appeal was prosecuted by the company to this court. The judgment of the district court was reversed, this court holding that the police power of the state to police the business of distributing gas in said municipality was reserved 'by section 7, art. 18, of the Constitution, and that the passage of said act was a proper exercise of such power. Pawhuska Oil & Gas Co. v. City of Pawhuska et al., 47 Okla. 342, 148 Pac. 118.

While said cause was pending in this court the Legislature passed an act (chapter 200, p. 407, Sess. Laws 1915), approved April 2, 1915, amendatory of chapter 152, Session Laws 1913, requiring the furnishing of natural gas in municipalities in the state to the inhabitants thereof through standard meters at meter rates. This latter act contained a proviso, which will be hereinafter discussed.

The 1913 Legislature passed another act (chapter 93, p. 150, approved March 25,1913), conferring upon the Corporation Commission general supervision over all public utilities. Section 2 of said act reads as follows:

“Sec. 2. The commission shall have general supervision over all public utilities, with power to fix and establish rates and to prescribe rules, requirements and regulations, affecting their services, operation, and the management and conduct of their business; shall inquire into the management of the business thereof, and the method in which same is conducted. It shall have full visitorial and inquisitorial power to examine such public utilities, and keep informed as to their general conditions, their capitalization, rates, plants, equipments, apparatus, and other property owned, leased, controlled or operated, the value of same, the management, conduct, operation, practices and services; not only with respect to the adequacy, security and accommodation afforded by their service, but also with respect to their compliance with the provisions of this act, and with the Constitution and laws of this state, and with the orders of the commission.”

On November 16, 1916, the. Pawhuska Oil & Gas Company applied to the Corporation Commission for authority under the provisions of chapter 93, Session Laws 1913, to raise its rates for gas in the city of Paw-huska. The city of Pawhuska appeared and moved for a dismissal .of said application, upon the ground that .the commission was without jurisdiction to raise the rates. This motion was overruled by the commission, and exceptions saved by the city, whereupon the city filed its answer to the application of the gas company, in which answer the jurisdiction of the commission in this particular proceeding was again challenged. A hearing was had before the commission in January, 1917, .as a result .of which the commission issued its order increasing the rates theretofore charged the customers of *216 said company in the city of Pawhuska, and requiring that all gas sold to the company’s consumers in said municipality should be sold through standard meters, requiring the company to install such meters, and further providing that the gas company should discontinue the sale of gas at a flat rate. From this order of the commission the city of Pawhuska brings the case here.

It is first urged by counsel for appellant that if chapter 93, Session Laws 1913, conferred jurisdiction upon the commission to fix and establish rates for public utilities, said act did not apply to cities of the first class, for the reason, as it claims, that at the time of the passage of the said act section 593, Rev. Laws Okla. 1910 (the pertinent parts of which are identical with section 398, Statutes of 1903), authorized. said cities to regulate by ordinance the rates to be charged by gas companies, and that said act was not repealed by the act conferring jurisdiction on the commission. Section 593, Rev. Laws of Okla. 1910, supra, reads as follows :

“The council may provide for and regulate the lighting of the streets, erection of lampposts, and the council shall have power to make contracts with and authorize any person, company or association to erect gas or electric works in said city and give such person', company or association thé privilege of furnishing gas or electricity to light the streets, lanes and alleys of said city for any length of time, not exceeding twenty-five years. But no such grant shall be so conditioned as to prevent the council from granting to other persons or companies or corporations the right to use the streets for like purposes under the provisions of sections 5a and 5b of article 18 of the Constitution; and all such grants shall be subject at all times to reasonable regulations by ordinance as to the use of streets and prices to be paid for gas or lights.”

The pertinent parts of the above section were in the Territorial Statutes on the date of the adoption of the Constitution, and at the time the franchise was granted the Paw-huska Oil & Gas Company by the- city of Pawhuska.

While it may be true, as contended by appellant, that section 593, supra, conferred upon the city of Pawhuska the power to change the rates prescribed by franchise to be charged for furnishing gas to the city of Pawhuska and the inhabitants thereof, we cannot agree with counsel that the act conferring jurisdiction on the Corporation Com-7 mission did not take such right away from the city of Pawhuska and all other cities of the first class.

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

Related

HICKMAN v. STATE ex rel. SERVICE OKLAHOMA
2023 OK CIV APP 17 (Court of Civil Appeals of Oklahoma, 2023)
American Insurance Ass'n v. State Industrial Commission
1987 OK 107 (Supreme Court of Oklahoma, 1987)
Vinson v. Medley
1987 OK 41 (Supreme Court of Oklahoma, 1987)
City of Chickasha v. Arkansas Louisiana Gas Co.
625 P.2d 638 (Court of Civil Appeals of Oklahoma, 1981)
In Re Layman's Estate
1953 OK 67 (Supreme Court of Oklahoma, 1953)
Anderson Hotels of Oklahoma, Inc. v. Baker
190 F.2d 741 (Tenth Circuit, 1951)
Harrigill v. State
1950 OK CR 12 (Court of Criminal Appeals of Oklahoma, 1950)
Ex Parte Sweeden
1947 OK CR 45 (Court of Criminal Appeals of Oklahoma, 1947)
Oklahoma Pipe Line Co. v. Fallin
1936 OK 187 (Supreme Court of Oklahoma, 1936)
Swain v. Oklahoma Ry. Co.
1934 OK 258 (Supreme Court of Oklahoma, 1934)
Y & Y Cab Service, Inc. v. Oklahoma City
28 P.2d 551 (Supreme Court of Oklahoma, 1933)
City of Okmulgee v. Okmulgee Gas Co.
1929 OK 472 (Supreme Court of Oklahoma, 1929)
Galbreath v. Oklahoma Natural Gas Co.
1928 OK 95 (Supreme Court of Oklahoma, 1928)
Western Oklahoma Gas & Fuel Co. v. City of Duncan
1926 OK 945 (Supreme Court of Oklahoma, 1926)
Huffaker v. Town of Fairfax
1925 OK 960 (Supreme Court of Oklahoma, 1925)
Eagle-Picher Lead Co. v. Henryetta Gas Co.
1925 OK 467 (Supreme Court of Oklahoma, 1925)
Oklahoma Natural Gas Co. v. State
1925 OK 450 (Supreme Court of Oklahoma, 1925)
Creek County v. Robinson
1925 OK 229 (Supreme Court of Oklahoma, 1925)

Cite This Page — Counsel Stack

Bluebook (online)
1917 OK 397, 166 P. 1058, 64 Okla. 214, 1917 Okla. LEXIS 628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-pawhuska-v-pawhuska-oil-gas-co-okla-1917.